Quality corporate governance attract investors, expert says

Update of corporate laws in Ukraine will significantly improve the investment climate, head of the National Commission for Securities and Stock Market Dmytro Tevelev told a press conference, ForUm correspondent reports.

According to the official, the task is to revitalize investment activity by corporate reform. "It's no secret that investors evaluate their potential investments not only at spheres of business or technical-technological state of investment targets. In recent years, investors have been increasingly interested in the quality of corporate governance in the companies raising capital, as it forms the basis for the growth of business and investment protection. Without specific corporate standards, investment attraction of any company is many times lower," the economist said.

He added that there is a social component in this issue. "After the privatization of the mid-90s, a whole layer of shareowners appeared in the country - 11 million people. Almost a third of the working population of the country has become a shareholder with a certain set of rights and duties, but almost always without understanding of their essence," Tevelev said.

These are the people, he said, whose expectations were often deceived both in terms of participation in the stock companies management, and in terms of dividends.

"It results in social frustration, resentment, and it is a serious social problem. Therefore, in the last 2 years, we have prepared and submitted a number of draft laws and other documents aimed at optimizing corporate governance," the official said.