The Ukrainian Parliament has voted to decrease the required minimum presence of voting rights, at General Meetings of Shareholders, from 60 percent to 50 percent.
That means that in future general meetings will only require that 50 percent of the shares with voting rights are represented at the general meeting to enable decisions.
If this amendment of the law is signed by the President, it will come into force on 1 January 2007.
“The new law will reduce the required presence quorum to 50 percent, thereby it might help ruling out certain corporate conflicts in case shareholders cannot take major decisions due to under representation,” says a spokesman for SEB. “On the other hand, due to the changed minimum presence of voting rights, certain strategic shareholders may more easily loose or gain control over a company as the required 50 percent presence is more easily reached.”