On 27 March 2009, the Cabinet of Ministers introduced more stringent requirements for state participation in the capitalisation of Ukrainian banks.
Participation can now only be initiated by the Ukrainian Central Bank. Previously, it could also be initiated by the Ministry of Finance and the bank owners.
Participation is now conditional on the state acquiring either:
- at least 50% plus one share of the bank's share capital (either solely or under a joint venture agreement with another investor) or
- at least 51% of the voting rights in general meeting (based on its shareholding and any other rights to participate in and vote at general meetings transferred to it by other shareholders) until the state disposes of its shareholding (previously, only the first alternative was required)
Participation may only be in banks:
- subject to a temporary administration procedure or with a coordinator appointed
- incorporated as (or changed during the capitalisation procedure into) open joint-stock companies
- whose actual current share value is determined by special guidelines
The third requirement is new, as is the coordinator option in the first requirement. It is not clear whether all three or only one of the requirements has to be satisfied
Law: The Resolution of the Cabinet of Ministers of Ukraine "On Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine" dated 11 March 2009, No. 241.
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The original publication date for this article was 06/04/2009.
