Naftogaz is Ukraine's largest state-run vertically integrated oil and gas holding / Photo from UNIAN
Ukraine's Cabinet of Ministers has approved a new wording of NJSС Naftogaz of Ukraine's by-laws that limits the powers of the company's Board of Directors in favor of its Supervisory Board, according to government resolution No. 1044 dated December 14, 2016.
The document states that the exclusive competence of the Supervisory Board now includes the preliminary approval of Board decisions concerning the activities of Naftogaz's subsidiaries, namely Ukrtransgaz, Ukrgazvydobuvannya and Ukrtransnafta. What is more, the Supervisory Board will also approve decisions on the appointment or dismissal of top managers and all the members of the board at the subsidiaries.
Read alsoCabinet endorses prolongation of Naftogaz's $3.7 bln loan from ChinaIn addition, the heads of Naftogaz's subsidiaries should be included in the holding's board mandatorily.
UNIAN memo. NJSC Naftogaz of Ukraine is the largest state-run vertically integrated oil and gas holding whose subsidiaries account for about 90% of oil and gas production in Ukraine. Naftogaz develops oil and gas fields, produces crude oil and natural gas. Its core business is also transportation and trade in fuel through its own network of filling stations.