The government has made changes to the Charter of public joint-stock company “Ukrainian Railways”, the resolution №52 adopted on the Government session of 18 January 2017, the press service of the Cabinet.
The decision was made to improve the management of the Cabinet of Ministers of Ukraine, as the sole shareholder and founder of public joint stock company “Ukrainian Railways”, corporate rights of the state in relation to this society, and in respect of a number of strategic state enterprises, the statement said.
It is noted that still a part of the functions related to the management of the company, was delegated by Cabinet to the Ministry of infrastructure.
“In its decision, the government revoked these delegated functions – from now on all decisions concerning the management of the company and its reporting are made by the Ministry not alone, but the Cabinet is a collegial body, whose membership includes the Minister of infrastructure. The Ministry of economic development is given only authority on the drafting of such decisions.
However, in terms of reforming such a powerful and complex companies as PJSC “Ukrzaliznytsia”, it is extremely important to minimize any risk of subjectivity in making managerial and financial decisions, and therefore changes in the articles of Association will definitely increase the efficiency of its work”, – explained in the Cabinet.
Also changed the composition of the Supervisory Board of PJSC “Ukrzaliznytsia”, which on a competitive basis will be selected and included independent Directors, as required by changes in legislation.
This decision articles of Association of PJSC “Ukrzaliznytsia” is given in accordance with the law of Ukraine “On amendments to some legislative acts of Ukraine concerning management of objects of state and communal property”, adopted by the Verkhovna Rada of Ukraine 02.06.2016 in the framework of the reform of corporate governance of business entities of the public sector. The transitional provisions of the act is required to bring the statutes and internal regulations of these entities in accordance with the adopted law.
It is noted that since the establishment of PJSC “Ukrzaliznytsia” has always been in control of the Cabinet of Ministers according to the current legislation, namely the law of Ukraine “On peculiarities of establishment of public joint-stock company of railway transport of General use” and the decree of the Cabinet of Ministers of 25 June 2014 № 200 “On creation of public joint stock company “Ukrainian railway”.
In addition, articles 2 and 9 of the above law and the provisions of paragraphs 25 and 26 of the Charter of PJSC “Ukrzaliznytsia” it is established that the founder and the only shareholder is the state represented by the Cabinet of Ministers of Ukraine. The management of corporate rights of the state on society since its creation carried out by the Cabinet of Ministers of Ukraine.
Paragraphs 54 and 55 of the Charter also established that the highest body of public joint stock company “Ukrainian railway” is the General Assembly, which functions are performed by the Cabinet of Ministers of Ukraine, and defines powers relating to its exclusive competence.
Recall that in 2016 the company after the new management team has already received several hundred million in profits in contrast to 2015, which “Ukrzaliznytsya” has finished with a loss of about 16 billion UAH.
