Demobilization of Conscripts, E-cabinet in UJITS is Mandatory

Law on Regulation and Supervision of Capital Markets and Organized Commodity Markets has been Adopted: What is Provided

On 22 February 2024, the Verkhovna Rada of Ukraine adopted Draft Law No. 5865 amending the Law of Ukraine “On State Regulation of Capital Markets and Organized Commodity Markets”.

Among others, the amendments provide the following:

• restating 1996 Law “On State Regulation of Capital Markets and Organized Commodity Markets”;
• expansion of the powers of the National Securities and Stock Market Commission (NSSMC), in particular, the possibility of conducting investigations of offenses in the capital markets;
• introduction of a significant number of innovations in terms of international cooperation with foreign financial regulators;
• imposition of financial sanctions for violations in the capital and commodity markets: for individuals in the amount of up to UAH 2.5 million, for legal entities – up to UAH 10 million or up to 5% of the total annual turnover of such legal entity.

Status of the law: being prepared for signature by the President of Ukraine.

President Signed Law on Demobilization of Conscripts

On 26 February 2024, the President of Ukraine signed a law (Draft Law No. 11035) on the immediate discharge of conscripts.

Thus, the Law regulates the possibility of discharging servicemen who have completed the prescribed period of military service to the reserve for the duration of martial law in Ukraine.

This will make it possible to retire servicemen who have completed their regular military service in 2024.

Also, such persons can not be called up for military service during mobilization within 12 months from the date of discharge from military service to the reserve, unless they have expressed a desire to continue military service.

The Law will enter into force on the day following its publication.

Parliament Adopts Law on Continuation of Corporate Governance Reform

On 22 February 2024, the Verkhovna Rada of Ukraine adopted in the second reading Draft Law No. 5593-d on improving corporate governance of legal entities in which the state is a shareholder (founder, participant).

According to the statement of the Ministry of Economy, this is a key milestone for the reform of state-owned enterprises, as the law improves corporate governance, strengthens the role and responsibility of supervisory boards, and brings Ukrainian legislation closer to OECD standards, taking into account the conditions of martial law.

Below are some of the key points provided by the law:

• expanding the powers of supervisory boards, with the Government receiving tools to control supervisory boards;
• giving the Cabinet of Ministers the power to approve the State Property Policy – the so-called “rules of the game for all state-owned enterprises”
• introduction of an internal control system: instead of audit committees, modern control tools are provided for such as compliance, risk management, and internal audit.

Status of the law: being prepared for signature by the President of Ukraine.

Registration of E-cabinets in the Electronic Court for Participation in Civil and Administrative Proceedings Becomes Mandatory

According to the press service of the judiciary of Ukraine, starting from 21 February 2024, the presence of an electronic cabinet in the Unified Judicial Information and Telecommunication System (UJITS) is mandatory for all legal entities involved in civil and administrative cases.

Failure to comply with this obligation will result in the court leaving the documents without action or returning such documents.