Government restricts powers of Naftogaz board expanding them for supervisory board
Ukraine's Cabinet of Ministers has enacted the new regulations of national joint-stock company Naftogaz Ukrainy considerably restricting powers of the board of directors and expanding them for the supervisory board.
The new regulations were published in the Uriadovy Kurier government's newspaper on December 31, 2016 and took effect.
According to the regulations, only the supervisory board now preliminarily approves the board's decisions related to the operations of companies where Naftogaz is a shareholder (public joint-stock companies Ukrtransgaz, Ukrgazvydobuvannia and Ukrtransnafta).
The decisions to appoint heads and all members of the boards of subsidiary companies and to dismiss them require the approval of the Naftogaz supervisory board.
Heads of all Naftogaz's subsidiary companies are included in the company's board.
The supervisory board is authorized to make decisions on other issues not related to the powers reserved for the supervisory board.