Squeeze-out and Sell-out. Meeting with the Authors of the Draft Law

2018-06-22

KYIV - June 22, 2018. The judges of the Court of Commercial Cassation of the Supreme Court, local and commercial courts of appeals, UBA members and representatives of the National Securities and Stock Market Commission participated in the expanded session of the Judicial Chamber for consideration of cases of corporate disputes, corporate rights and securities of the Court of Commercial Cassation of the Supreme Court, devoted to the discussion of compulsory redemption and sell of shares (squeeze-out and sell-out).

The subject of discussion was the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Increasing the Level of Corporate Governance in Joint-Stock Companies" (No. 1983-VIII).

Vice-Chair of the Supreme Court, Chair of the Court of Commercial Cassation Bohdan Lvov said in a welcoming speech that judges had a unique opportunity to communicate with the authors of the draft law for a better understanding and effective application of its norms in practice.

The moderator of the event Ganna Vronska,  judge, Secretary of the Judicial Chamber of the Supreme Court stressed that the aim of the event was to provide the judges of local and appellate economic courts with the opportunity to discuss with the authors the essence and main ideas of the procedures of squeeze-out and sell-out of shares.

Ganna Vronskaya particularly emphasized the importance of ensuring the balance of interests of majority and minority shareholders, as well as the protection of the rights of minorities in the process of implementing the above mentioned procedures for the redemption and sale of shares.

The meeting was attended by Anna Babych, Chair of the UBA Committee on Corporate Law and Stock Market, Mykola Stetsenko, member of the Board of the UBA Committee on Corporate Law and Stock Market, Maksym Libanov, member of the National Commission on Securities and Stock Market, Oliana Gordienko, Management Director of the European Bank for Reconstruction and Development.

During the event the speakers familiarized the participants with the main tendencies in the regulation of the procedures for the compulsory purchase and sale of shares in Europe and globally, disclosed the principles laid down in the Law of Ukraine on raising the level of corporate governance in joint stock companies, which adapted the national legislation to the European one and introduced the procedure of squeeze-out and sell-out of shares.

Discussion of the issues raised by the speakers caused a lively discussion among the community.

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