News
2009/10/13
On October 13, 2009, international investment company SigmaBleyzer, under the auspices of the State Commission on Securities and Stock Exchange Markets and the Development of Capital Markets project, financed by USAID, held a round table for mass media and experts entitled “A New Law on Joint Stock Companies and the Prospects for Joint Stock Companies to Attract Capital Ômidst and in the Aftermath of the Crisis”, involving participation of investors, representatives of the State Commission on Securities and Stock Exchange Markets, and lawyers.
Maksim Libanov Anatoliy Otchenash
During the first half of 2008, the volume of trading on Ukrainian stock exchanges was estimated at UAH 17.92 billion, but two years later it shrank twice in size, down to UAH 9.61 billion. Companies suffer from the lack of capital, 95% of shareholders being natural persons. It goes without saying that in the present situation, there is no point in counting on a considerable capital inflow from personal savings of households. Ukraine must find other sources of capital.
Not only has the issue of investments become a serious concern over the past year, but the way it is going to be resolved has become one of the key factors deciding whether and how the country will emerge from the crisis. The country’s economy must be filled with funds to modernize companies and increase GDP in the future. As long as this problem remains unsolved, Ukraine will not be able to resist being labeled as an “emerging market”.
However, the only way for Ukraine to attract capital is to create a reasonably comfortable business environment for investors, which can be ensured through the establishment of the appropriate legal and regulatory framework. The adoption of the Law of Ukraine On Joint Stock Companies should put the development of joint stock companies in the spotlight.
But does the Law On Joint Stock Companies live up to investors’ expectations? What are the chances of actually raising capital?
The round table discussed the following topics:
• How perfect is the law?
• Will the new law on joint stock companies help to resolve existing issues with their operation, involving notorious corporate scandals, raider attacks, unpaid dividends, and disregard for minority shareholder rights?
• Will there be created enough confidence among major shareholders, non-residents, joint investment institutions, and non-governmental pension funds so that they can entrust their funds to joint stock companies not only without the risk of losing them, but also at a profit?
“Financial Crisis – Is Ukraine Ready for New Investments? Looking into the Future”
Oleg Ustenko, Executive Director, The Bleyzer Foundation
“Preferred Shares as a Source of Investments in Joint Stock Companies”
Anatoliy Otchenash, President of Avtoalyans-Invest Stock Company
“Issues of JSC Adjustment to the New Law”
Elena Shcherbina, Counsel of the Sayenko Kharenko legal firm.
“Rule-Making Activity of the Regulator”
Maksim Libanov, Head of the Legislation Drafting Department for the Securities Market, State Commission on Securities and Stock Exchanges
“Ukraine’s Stock Exchange Market – Ability to Attract Investments”
Diana Smakhtina, Vice-Precident, Corporate Management Director, the SigmaBleyzer international investment company.
Maksim Libanov Anatoliy Otchenash
During the first half of 2008, the volume of trading on Ukrainian stock exchanges was estimated at UAH 17.92 billion, but two years later it shrank twice in size, down to UAH 9.61 billion. Companies suffer from the lack of capital, 95% of shareholders being natural persons. It goes without saying that in the present situation, there is no point in counting on a considerable capital inflow from personal savings of households. Ukraine must find other sources of capital.
Not only has the issue of investments become a serious concern over the past year, but the way it is going to be resolved has become one of the key factors deciding whether and how the country will emerge from the crisis. The country’s economy must be filled with funds to modernize companies and increase GDP in the future. As long as this problem remains unsolved, Ukraine will not be able to resist being labeled as an “emerging market”.
However, the only way for Ukraine to attract capital is to create a reasonably comfortable business environment for investors, which can be ensured through the establishment of the appropriate legal and regulatory framework. The adoption of the Law of Ukraine On Joint Stock Companies should put the development of joint stock companies in the spotlight.
But does the Law On Joint Stock Companies live up to investors’ expectations? What are the chances of actually raising capital?
The round table discussed the following topics:
• How perfect is the law?
• Will the new law on joint stock companies help to resolve existing issues with their operation, involving notorious corporate scandals, raider attacks, unpaid dividends, and disregard for minority shareholder rights?
• Will there be created enough confidence among major shareholders, non-residents, joint investment institutions, and non-governmental pension funds so that they can entrust their funds to joint stock companies not only without the risk of losing them, but also at a profit?
Elena Shcherbina Diana Smakhtina Oleg Ustenko
Speakers: “Financial Crisis – Is Ukraine Ready for New Investments? Looking into the Future”
Oleg Ustenko, Executive Director, The Bleyzer Foundation
“Preferred Shares as a Source of Investments in Joint Stock Companies”
Anatoliy Otchenash, President of Avtoalyans-Invest Stock Company
“Issues of JSC Adjustment to the New Law”
Elena Shcherbina, Counsel of the Sayenko Kharenko legal firm.
“Rule-Making Activity of the Regulator”
Maksim Libanov, Head of the Legislation Drafting Department for the Securities Market, State Commission on Securities and Stock Exchanges
“Ukraine’s Stock Exchange Market – Ability to Attract Investments”
Diana Smakhtina, Vice-Precident, Corporate Management Director, the SigmaBleyzer international investment company.