Securities commission proposes settling problem of 'sleeping shareholders' via buyback scheme

12:28, 17.12.2015 1 min read

The National Commission for Securities and the Stock Market of Ukraine has proposed that the issue of participation of so-called "sleeping shareholders" in the management of joint-stock company via the share buyback scheme.

The initiative is outlined in the bill amending some Ukrainian laws regarding the regulation of the participation of shareholders in the management of joint-stock companies drawn up by the regulator and posted on its website.

According to the document, shareholders who before October 12, 2014 did not use the right to send their share to the accounts in the depository system will be able to restore the registration of their ownership right to the securities within one year.

If they do not use it, their securities will be considered bought back by the issuer.

The authors of the bill said that the procedure will help improving corporate management in joint-stock companies.