KIEV, May 10 – Legislative amendments on investor protection passed by Parliament last year took effect on May 1.

Lawyers said that the most important provisions of the law on amending some Ukrainian laws regarding protection of investors' rights is the introduction of the derivative suit as a new way to protect investors' rights. This scheme allows punishing managers of economic entities for losses caused by their actions of neutrality. Shareholders holding 10% and more of the total share capital have the right to bring a lawsuit to court on behalf of the company seeking to refund losses caused by a company manager.

Partner of Asters law firm Oleksiy Demyanenko said that the derivative suit could be used in corporate conflicts to put pressure on directors and block operations of companies.