NSSMC works with MPs on a number of anti-crisis measures to counter the spread of COVID-19

In view of the introduction of the SARS-CoV-2 infectious disease quarantine (COVID-19), the National Securities and Stock Market Commission (NSSMC) considers it appropriate to implement a number of anti-crisis measures that will reduce the risk of coronavirus spread in Ukraine.

In particular, the NSSMC considers it advisable to establish a special procedure for convening and holding a general meeting of shareholders for 2020, which will provide for:

• Ability to hold a general shareholder meeting remotely in 2020.
• The date of annual general meetings of shareholders established by the legislation shall be applied in 2020. The meeting can be held until December 31, 2020.
• The deadlines for the publication of annual reports by joint stock companies – issuers of securities will not be applied in 2020. Annual reports may be disclosed within 5 working days after the general meeting of shareholders in general procedure.
• If the term of office of members of the supervisory boards of joint-stock companies expires in 2020, the powers of such members of the supervisory boards will be fully extended until the date of the general meeting of shareholders.

To this end, the NSSMSC is working with other state bodies and MPs on the profile committee of the Verkhovna Rada to work on a complex of anti-crisis measures, which will be considered by the Verkhovna Rada at an extraordinary session. In particular, the NSSMC deems it necessary to amend the legislation on the activities of joint-stock companies and delegate to it the temporary requirements for convening and holding a general meeting of shareholders for the period of quarantine.

We would like to remind you that the Law of Ukraine “On Joint Stock Companies” requires holding a regular general meeting of shareholders by April 30. At the same time, holding a general meeting of shareholders will be in violation of sanitary standards established to counteract the spread of COVID-19.

“We understand the situation in the country, but the Law “On Joint Stock Companies” contains clear imperative rules, which the regulator cannot change with its decisions, which is the exclusive prerogative of the Verkhovna Rada”, – explained Maxym Libanov.

The issue of holding a general meeting of shareholders is currently relevant to more than 5,000 joint stock companies and about 300,000 shareholders of these companies. Allowing them to postpone the meeting or hold it remotely will minimize the risk of coronavirus spread in Ukraine.