This Resolution of the Cabinet of Ministers of Ukraine No. 769 dated June 5, 2026, is aimed at improving corporate governance in the defense sector. The document updates the Charter and the Regulation on the Supervisory Board of Joint-Stock Company “Ukrainian Defense Industry” (JSC “UDI”). Technical amendments are also made to the Rules of Procedure of the Cabinet of Ministers, which establish a special procedure for preparing government acts regarding the management of this company.
### Structure and Key Changes
The law (resolution) consists of three key blocks:
1. **Amendments to the Rules of Procedure of the Cabinet of Ministers of Ukraine:** it is established that the preparation of government decisions regarding JSC “UDI” shall be carried out taking into account the specifics defined by its Charter.
2. **New version of the Charter of JSC “UDI”:** the legal status, purpose, powers of management bodies, and the procedure for interaction with defense industry enterprises are described in detail.
3. **New version of the Regulation on the Supervisory Board:** the principles of formation (50% independent members, 50% state representatives), requirements for candidates, and the operating procedure of the collegial body are defined.
Compared to previous versions, the updated documents more clearly delineate the powers between the General Meeting (the Government), the Supervisory Board, and the Director General, and also strengthen the requirements for transparency and anti-corruption control.
### Most Important Provisions for Use
* **Management Model:** JSC “UDI” operates as a two-tier management system. The functions of the General Meeting are performed by the Cabinet of Ministers of Ukraine.
* **Powers of the Supervisory Board:** It is the key body that appoints the Director General, approves strategic plans, and monitors risks. It is important that the decision on the approval of the strategic development plan is adopted by at least two-thirds of the board’s composition.
* **Status of the Director General:** He/she exercises operational management, has the right to act on behalf of the company without a power of attorney, but is accountable to the Supervisory Board and the General Meeting.
* **Anti-Corruption Measures:** The Charter requires the mandatory approval of an anti-corruption program and the establishment of compliance and internal audit units, which report directly to the Supervisory Board.
* **Financial Restrictions:** The payment of dividends to the state (30% of net profit) and the procedure for the use of property are clearly regulated, which limits the possibilities for arbitrary disposal of assets without the consent of the government.
