Energoatom backs creation of supervisory board exclusively after corporatization

National Nuclear Generating Company Energoatom supports the creation of a supervisory board, but after the adoption of a special law on its full-fledged corporatization, said head of the state enterprise Petro Kotin, criticizing the competition announced by the Ministry of Energy for the selection of independent members of the supervisory board.

"Only full-fledged corporatization after the adoption of a special law will make it possible to create a joint-stock company, taking into account the world's best corporate governance practices and avoid the negative experience of corporatization in Ukraine. And only in such a society will it be possible to create an effective collegial supervisory body," Kotin was quoted by the press service of the company as saying on its website on Friday.

The head of the company called the announcement by the Ministry of Energy of the selection of candidates for four vacant positions of independent members of Energoatom's supervisory board "unacceptable, destructive and impossible to implement."

In his opinion, the work of the Supervisory Board at this stage, prior to corporatization, will lead to managerial chaos and significant financial losses, given that only the remuneration of each member of the Supervisory Board will amount to UAH 300,000 per month.

"Now the policy of the Ministry of Energy is becoming clear: the Company is brought to bankruptcy, because the debts to Energoatom have grown by another billion over the past month and have reached almost UAH 24 billion, and transferred to private ownership. This process will be managed by a supervisory board of seven members, four of which – independent. Today it is even horrible to imagine the consequences of such decisions," said Kotin.

He claims that the issue of forming a supervisory board was considered at a meeting in the Cabinet of Ministers, during which all those present agreed with the approach of Energoatom, but his protocol subsequently included unconsidered issues on creating a supervisory board without corporatization and a special law, as well as on the transfer of nuclear installations and materials in private property.

The order of the Ministry of Energy on the announcement of competitive selection for the position of an independent member of the supervisory board of the state enterprise was dated October 28. "To announce a competitive selection of candidates for four vacant positions of independent members of the supervisory board of the state-run National Nuclear Generating Company Energoatom," it says.

The tender announcement itself is not available on the websites of the government, the Ministry of Energy and the Ministry of Economic Development.

Source: www.en.interfax.com.ua