A new accounting system for company shares has been launched in Ukraine - NSSMC
Kyiv • UNN
The NSSMC has introduced a new system of accounting for company shares, which allows limited liability and additional liability companies and their shareholders to transfer share accounting from the Unified State Register to the National Depository of Ukraine, providing additional protection, guarantees and services for share ownership and transactions.
From now on, limited liability and additional liability companies and their members can transfer the accounting of shares from the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations to the accounting system of shares of the National Depository of Ukraine. This is reported by the National Securities and Stock Market Commission (NSSMC), UNN reports.
Enabling company shareholders to transfer their share records from the Unified State Register to the Central Depository is a fundamental job of us as a regulator. The purpose of such accounting is to record the facts of acquisition and termination of rights to shares, restrictions on rights to shares and, of course, to protect the ownership of shares from unauthorized loss. I am confident that a new stage is opening for the market and this is another step towards digitalization and digitalization of processes
Maryna Adamovska, member of the Management Board of PJSC NDU, added that the introduction of the mechanism for accounting for shares of LLCs and ALCs through the Central Securities Depository's share accounting system is a revolutionary innovation.
One person will be able to combine their ownership rights to securities and a share in a company in one depository institution and use additional services offered by the Central Depository
According to her, the use of escrow accounts to guarantee the fulfillment of obligations under share alienation transactions will increase the guarantees of creditors whose rights and claims are secured by a pledge of rights to a company's share and will provide opportunities to expand the use of this type of security.
The NSSMC adds that accounting in the NSDU system is:
- an additional mechanism for protecting the ownership of company shares; guaranteeing compliance with the regime of restrictions on company shares (in particular, in the case of pledging);
- an effective mechanism for guaranteeing the fulfillment of obligations under transactions involving company shares (escrow account);
- technological method of holding electronic meetings of the company's shareholders; new opportunities for corporate events (payment of dividends and sending notifications through the accounting system);
- consolidation of the participant's investment portfolio in one depository institution.
