Ukrzaliznytsia To Introduce Corporate Governance System For Dependent Enterprises In February

27 September 2017 17:35

The Ukrainian Railways public joint-stock company (Ukrzaliznytsia) plans to introduce a new corporate governance system for its dependent enterprises by February 2018. Ukrzaliznytsia’s acting Board Chairman Yevhen Kravtsov announced this in an interview with the Magistral newspaper.

"It is necessary to develop and introduce a new corporate governance system for dependent companies. We are targeting February 2018," Kravtsov said, adding that Ukrzaliznytsia was only at the beginning of its journey toward creation of a "modern enterprise."

He expressed satisfaction at the fact that the National Securities and Stock Market Commission finally registered the shares issued by Ukrzaliznytsia on September 7.

"This is a historic event that opens the way for a new phase of the reform of the company. We also need to approve the new charter of Ukrzaliznytsia and create a basis for the work of a new supervisory board with independent members, which should begin approximately in October this year," Kravtsov said.

As the CFTS portal reported earlier, Ukrzaliznytsia has already begun selecting consultants for reform of its corporate governance. Kravtsov said last week that "only the best global companies with the broadest experience in corporate governance systems can help such a large company as Ukrzaliznytsia, which is the largest in Ukraine."

The Ukrainian Railways public joint-stock company was created on the basis of the Ukrzaliznytsia state railway administration as well as more than 50 rail transport enterprises and institutions, which were merged. The new public joint-stock company includes six railways, railcar repair plants, state railway enterprises, rail transport design and research institutes, and several technological design and engineering bureaus.

The company, in which the state owns 100% of the shares, began commercial operations in December 2015.