D&O Insurance becomes reality in Ukraine

Ukraine

On 20 January 2021, the Ukrainian Cabinet of Ministers (CMU) approved Resolution No. 28 “On amendments to the procedure for voluntary liability insurance of managers and members of supervisory boards of state unitary enterprises and companies in the authorised capital of which more than 50 percent of shares (participatory interests) are owned by the state”.

This Regulation introduces the following:

  • lifts restrictions on the maximum amount of expenses for the payment of insurance premiums under insurance contracts in relation to managers and members of the supervisory board previously established by the CMU.
  • requires that the maximum amount of expenditures on insurance premiums under the insurance contract correspond to the expenditures for insurance specified in the financial plan of the respective company or in the budget of the bank.
  • supervisory board members whose liability should be insured are no longer determined by the state.

For more information on the new regulation, contact your regular CMS advisor or local CMS experts:  Maria Orlyk, Taras Chernikov, Ihor Olekhov, Khrystyna Korpan and Glib Bukharin.

Source: Resolution No. 28 On amendments to the procedure for voluntary liability insurance of managers and members of supervisory boards of state unitary enterprises and companies in the authorized capital of which more than 50 percent of shares (shares) are owned by the state. (in Ukrainian).