On 13 January 2015 the Verkhovna Rada of Ukraine adopted the Law ofUkraine “On Amendments to Article 41 of the law of Ukraine “On Joint-StockCompanies” regarding the quorum for the general shareholders' meetings ofjoint stock companies, in which the State owns the majority shareholding” No.91-VIII (“Law No. 91-VIII”), signed by the President of Ukraine on 28 January2015.

Law No.91-VIII reduces the quorum for general meetings ofjoint-stock companies from 60% to 50% plus one share. As for joint-stockcompanies with the state participatory interest (in the authorized capital ofwhich there are state corporate rights and in which the state owns 50% or moreof ordinary shares) Law No. 91-VIII takes effect from 31 January 2015, and asfor other joint-stock companies – from 1 January 2016.

Previously the law of Ukraine enabled the shareholders jointlyowning more than 40% of ordinary shares to block general meetings of ajoint-stock company, which resulted in hindrances to the activity of somejoint-stock companies facing conflict of interests between majority andminority shareholder(s). Upon entry into force of Law No. 91-VIII as for therespective category of companies, the presence of shareholders owning more than50% of voting shares in the company will suffice to hold the general shareholders’meeting and to pass the respective decisions.

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