Corporate governance: professional participants must establish supervisory boards from the beginning of the new year

The NSSMC (National Securities and Stock Market Commission) draws attention to the fact that in the transitional provisions of the Law of Ukraine on Capital Markets and Organized Commodity Markets there is a mandatory provision regarding the creation of a supervisory board by companies from 01.01.2023. It should become part of the corporate governance structure.

Also, from January 1, 2023, Boards of Directors may be formed under the new law on joint-stock companies.

The NSSMC`s Resolution No. 1291 dated 12.30.2021, which approved standard No. 4 for professional participants, established the deadlines for submitting internal documents regarding corporate governance to the regulator. Thus, by its Resolution No. 558 dated 01.06.2022, the NSSMC postpones the submission of such documents within 90 days after the end of martial law.

It is important that the postponement of the submission of documents in no way affects the implementation of the norms of the current legislation regarding the creation of such a body as the supervisory board in the system of corporate management of professional participants.

Corporate governance plays an important role for the stable and reliable functioning of any company. Therefore, its introduction will help reduce risks and create a proper internal control system.