Sunday, 09, May, 2021

The government resolution approved the strategy for management and reform of enterprises in which the state owns a stake and the targets for its implementation in 2021–2025.

Within the target figures:

- the number of enterprises with the state’s stake will be reduced by 75 percent;

- shares of at least 20 enterprises with the state’s stake will be offered in initial and secondary placement;

- The number of independent members on the supervisory boards of enterprises with the state’s stake will reach 30 percent by 2025.

In addition, from 1 July 2021:

- in enterprises with the state’s stake, a supervisory board, an internal audit service, an audit committee as part of the supervisory board will be created;

- in joint-stock companies, whose shares are included in the stock exchange quotation list of the stock exchange (listing) and in the authorized capital of which there is a state share of over 50 percent, a “compliance system” authority will be created.

Also from January 1, 2022:

- the special right of the state to participate in the management of some joint-stock companies in the strategic industry shall be abolished;

- the powers of the members of the executive body and the supervisory board shall be extended from 1 year to 3 years;

- the practice of selecting candidates for members of the supervisory board of enterprises with the state’s stake with the limit of the stake shall be introduced step by step.

According to the strategy, the following shall be canceled:

- coordination with the Cabinet of Ministers of candidates for management and members of the executive body of enterprises with the state’s stake;

- practice on the simultaneous occupation by civil servants of the positions of the head (member) of the executive body of enterprises with the state’s stake.

A mechanism of liability insurance for the head and members of the executive body is being introduced.

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