Changes in Ukrainian Law on Quorum Rules of General Meetings of Joint Stock Companies

Amendments to Article 41 of the Law of Ukraine “On Joint Stock Companies” were adopted by the Parliament of Ukraine on January 13, 2015 and have been in force since January 30, 2015.

The new law has changed rules specifying the make-up of a quorum of the general meeting of joint stock companies in Ukraine. The newly adopted changes state that the general meeting of a joint stock company is valid with a quorum of 50% plus 1 share. This differs significantly from the previous rule which required a quorum of 60% plus 1 share.

Initially, 50% plus one was only supposed to apply to companies with state ownership. However, the draft law was later changed and the effective amendments now refer to all joint stock companies irrespective of state participation. However, whereas the new quorum rules for joint stock companies in which the state is the major stakeholder entered into force as of January 30, 2015; the new quorum rules for all other joint stock companies (without the state as a major stakeholder) will first become effective as of January 1, 2016, almost one year later.

The new rules are likely to simplify the procedure of taking decisions in joint stock companies in Ukraine.

Contact us with any questions you may have about recent law changes or doing business in Ukraine. We look forward to assisting you in your business ventures.