When a business is on its development track it requires financing and good governance practice, managerial expertise and strategic vision. Private equity and venture capital funds overdraw the role of powerful investors with the articulated function of improving economic efficiency and speeding up growth. The case of Rozetka’s marketplace is the most distinctive example of a successful project involving a private equity firm.
This article analyzes and discusses legal and practical aspects and the role of corporate governance in private equity (PE) investments in Ukraine. As PE, especially Ukraine-focused, has always been of a multinational nature, it would be a mistake to consider PE-related corporate governance from the Ukrainian perspective only, and not to take into account the applicable cross-border elements. Thus, the article addresses both the Ukrainian specifics as well as multinational and cross-border specifics of corporate governance.
It is quite obvious that recently the Ukrainian VC sector and IT industry as a whole have made if not a quantum leap but a very visible leap. The number of investment-friendly IT companies has grown substantially, so there is considerable growth in the number of investment deals signed. Public deals made in recent years relate not only to product companies but to outsourcing, including large ones.
AEQUO advised Raiffeisen Bank International
AVELLUM advised ICU
EU court saved transit of Russian gas through Ukraine – Poland
Fine imposed on Roche Ukraine by AMCU annulled
Supreme Court altered position and forbade State Enforcement Service to enforce sale of Prominvestbank
Privatbank subsidiary fined EUR 1 million in Latvia
Triolan provider fined UAH 3.7 billion
Parliament adopted draft law on lease of state-owned property
Draft Law On Tax Amnesty published
Parliament upheld introduction of changes to ProZorro system
Draft Law on opening up agro land market from 2020 made public
State HEP plant sold for more than UAH 100 million
Google to invest EUR 3 billion into European data centers
Fitch improves Naftogaz rating
40% of all foreign direct investment in world fictitious
EU extended personal sanctions against Russia for six more months
Biopharma has launched a plasma fractionation plant
Business forecasts exchange rate at UAH 28 per dollar in 2020
Law on “splitting” financial services regulator adopted
NBU lifted currency restrictions for non-residents
Parliament upheld decriminalization of fictitious entrepreneurship
President signed decree on urgent measures in economy
Private equity investments have for a long time been playing an important role in developing Ukrainian businesses and taking them to the next level, while venture capital is on the rise with some landmark Ukrainian companies becoming global players in the high-tech sector. In fact, both private equity and venture capital have reached the level where each can be defined as a separate industry.
First there was a contract
We all have different relations with contracts: some of us love them, some have mixed experiences, while some may even hate them.
Needless to say, contracts are one of the most important things in life of any business and a successful operation often depends on agreements that were made.
Arbitration, as an effective alternative dispute resolution method, has gradually turned into the main one for international commerce due to its flexibility, promptness, impartiality and a number of other advantages. Arbitration of corporate disputes is often preferable for parties, though it can appear to compete with domestic public policy. Thus, the issue of corporate disputes arbitrability has been a matter of a discussion, particularly with regard to the nature of corporate disputes, definition of this term in different jurisdictions, their meaning for international and domestic public policy. This issue is of special importance considering variable case law worldwide on the stage of recognition and enforcement of arbitral awards in corporate disputes.
Olexander Martinenko, Оlga Shenk
Why is it necessary?
When structuring investments in Ukraine, investors usually keep in mind a variety of considerations — tax, commercial, corporate, financial, etc. Yet, there is one more factor that may seemingly play an insignificant role at the outset of entering the Ukrainian market, and may yet become a life rope when the investor runs into troubles with the local authorities.
With the start of the new political season, we can observe an extremely high level of legislative activity inside the Ukrainian Parliament itself, as well as from the President of Ukraine and from the Government. In the previous month a significant number of draft laws were examined and adopted by Parliament, like the widely discussed “split law”, On Amendments to the Tax Code of Ukraine on Specifics of Applying Special Reporting for Breaches Committed by Individuals of Tax and other Laws Controlling those Laws on Control Authorities up till 31 December 2018, known as the “draft law on tax amnesty” and many others. Another recent highlight was the signing of the Singapore Convention on Mediation. The UJBL editorial team asked experts to provide their comments on the most important ones.
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