The Cabinet of Ministers approved a new procedure for assessing the effectiveness of state-owned companies
The Cabinet of Ministers of Ukraine approved resolution, which establishes the procedure for evaluating the achievements of state-owned companies in relation to the set goals specified in the owner’s letter of expectations. This resolution was developed by the Ministry of Economy to fulfill the requirements of Law No. 3587-IX, which improves corporate governance.
The new procedure is aimed at strengthening control over the performance of state-owned enterprises, based on the owner’s letter of expectations, which specifies specific goals and expected results of the companies’ activities.
According to the document, the evaluation of efficiency is carried out on the basis of the annual report that state companies submit to the relevant management bodies (Ministry of Economy, relevant ministries or the Cabinet of Ministers). The report should contain information on the fulfillment of the goals set by the owner.
The evaluation is based on a point system, taking into account key performance indicators (such as financial results, implementation of strategic plans, etc.), which are clearly spelled out in the letter of expectations.
According to the evaluation results, the company’s activity can be classified as effective, satisfactory or unsatisfactory.
These results will be taken into account when making management decisions, in particular regarding the management of the company.
It is expected that the new order will increase the transparency and accountability of state-owned companies and improve the system of corporate governance.
