10

March

2017

Cabinet of Ministers Adopted Regulations Aimed at Implementation of the Corporate Governance Reforms for State Enterprises

On March 10, 2017, the Cabinet of Ministers adopted Resolution No. 142 “Re: Some Issues of Management of State Unitary Enterprises and Commercial Associations with More Than 50 Percent Share of Authorized Capital Owned by the State”. This document approved the following:

1) criteria under which the establishment of a board of trustees is mandatory for state unitary enterprises and commercial associations with more than 50% share of state-owned authorized capital;

2) procedure for establishment, organization of work, and liquidation of a state unitary enterprise’s board of trustees and its committees;

3) procedure for conducting competitive selection of candidates for independent members of a state unitary enterprise’s board of trustees and their appointment, as well as for conducting competitive selection of candidates for independent members of the board of trustees of a commercial association with more than 50% share of state-owned authorized capital, who are recommended by the entity charged with managing state property objects for election as independent members of a board of trustees;

4) requirements for independent members of the boards of trustees of a state unitary enterprise and a commercial association with more than 50% share of state-owned authorized capital.

Subsequently, this Resolution and its annexes were subject to certain amendments throughout 2017-2018.

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