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COVID-19 in Ukraine: NSSMC anti-crisis initiative on holding general meetings of joint-stock companies

In order to prevent spread of the coronavirus disease (COVID-19) in Ukraine, the National Securities and Stock Market Commission (the Commission), together with other state bodies and deputies from the profile Committee of the Verkhovna Rada of Ukraine, is currently working on a complex of anti-crisis measures regarding establishment of a temporary procedure for calling and holding general meetings of shareholders (the Meeting) in 2020. The issue becomes especially acute given the current legal requirement to hold annual Meeting not later than on 30 April.

Thus, the Commission is initiating to amend legislation on joint-stock companies (the JSCs) and proposing to determine temporary special requirements for calling and holding the Meetings in 2020, in particular:

-        granting of the possibility to hold the Meetings remotely;

-        extension of the term for holding the annual Meeting to 31 December 2020;

-        cancellation for 2020 of the statutory deadlines for the publication of JSC annual reporting and provision of the possibility of its disclosure within 5 business days after the Meeting being held per the general procedure;

-        for the cases of expiration of supervisory boards' members' terms of office in 2020, automatic extension of such members' all powers until the date of the Meeting.

In addition, the Commission separately emphasized that the JSCs that are planning to hold the Meetings during the quarantine period should consider the restrictions to hold mass events as imposed by the Cabinet of Ministers of Ukraine. Holding Meetings by the JSCs, which have more than 10 Meeting participants (including chairman, secretary and other working bodies of the Meeting), will amount to violation of the sanitary rules and norms established for the quarantine period.

 

To get more information or discuss business and legal implications for your company caused by novel coronavirus outbreak please get in touch with Asters COVID-19 task force at covid19-response@asterslaw.com

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