The Cabinet has outlined the process for evaluating the performance of supervisory boards in state-owned companies.

The Cabinet of Ministers of Ukraine has approved the Procedure for assessing the activities of supervisory boards of state-owned companies and the requirements for their reports. In particular, the document stipulates that the following supervisory boards of state companies must undergo an evaluation for the year 2024:

• Public Joint Stock Company "National Energy Company 'Ukrenergo'",
• Joint Stock Company "National Joint Stock Company 'Naftogaz of Ukraine'",
• Limited Liability Company "Operator of the Gas Transmission System of Ukraine".

The Ministry of Economy notes that this procedure will allow for an assessment of the independence of supervisory boards and the alignment of their activities with the corporate governance principles of the Organization for Economic Cooperation and Development.

Furthermore, the adoption of this document is one of Ukraine's commitments within the framework of cooperation with the IMF.

The assessment procedure includes the following provisions:

• elements of assessment, regarding which conclusions are drawn;
• types of evaluations of the supervisory board's activities;
• criteria for engaging an independent consultant to conduct an external assessment of the supervisory board's activities;
• procedure for selecting an independent consultant;
• procedure for documenting the results of the assessment;
• procedure for making decisions based on the assessment results.

The document also stipulates the submission of an annual report on the supervisory board's work to the company's general meetings or the authorized management body by March 30 of each year. The report must include data on the implementation of the company's strategic development plan, achievements of short- and medium-term financial, operational, and non-financial goals as outlined in the owner's letter of expectations.