Kyiv Corporate Alert

The President of Ukraine has signed Law No. 289-VIII "On Amendments to Some Legislative Acts of Ukraine relating to Investors' Rights Protection" (the "Law") aimed at deregulating the economic activities of joint-stock companies in order to enhance their attractiveness to investors. Another goal of the law is to implement stricter requirements towards listed public joint stock companies to ensure a higher level of protection for minority investors' rights and promote Ukraine's compliance with the requirements of the Ukraine-EU Association Agreement.

In particular, the Law provides for the introduction of derivative action (i.e., the right of a minority shareholder to sue for damages in favour of the joint-stock company); the introduction of liability for officials of business companies in case their unlawful actions inflicted damages to the company; establishing the procedure to invalidate a legal transaction carried out by an official and refunding profits obtained