On Amendments To Certain Laws Of Ukraine On Ensuring Transparency Of Ownership Of The Media And The Implementation Of The Principles Of The State Policy In The Sphere Of Tv And Radio Broadcasting

Original Language Title: Про внесення змін до деяких законів України щодо забезпечення прозорості власності засобів масової інформації та реалізації принципів державної політики у сфері телебачення і радіомовлення

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Read the untranslated law here: http://zakon3.rada.gov.ua/laws/show/674-19

Law of Ukraine on amendments to certain laws of Ukraine on ensuring transparency of ownership of the media and the implementation of the principles of the State policy in the sphere of tv and radio broadcasting, the Verkhovna Rada of Ukraine decides: I. Make changes to the following laws: 1. In the law of Ukraine "on the National Council of Ukraine on television and radio broadcasting" (Supreme Council of Ukraine, 2005, no. 16, article 265 of the following amendments) : 1) article 13 paragraph supplement the thirteenth such content: "control and supervision over observance of teleradìoorganìzacìâmi and providers of software services requirements for disclosure of individually controlled target holders (controllers), and in their absence-of all owners and participants of the tv or the provider of software services and all natural persons and legal persons and participants at all levels of the chain of possession corporate rights of the software provider or tv services of related entities and the ownership structure of the software provider or tv service. Control is by presenting the National Council requests for information to bodies of State power and bodies of local self-governance, natural and legal persons, requests for information from public registers, as well as requests for information to the competent authorities of foreign States in accordance with international legal acts ratified by the Verkhovna Rada of Ukraine ";

2) in the seventh paragraph of article 14 of the words "State Register of Ukrainian media" replace the words "the State Register of subjects of information activities in the field of television and radio broadcasting";

3) of the third paragraph of article 16 the eleventh supplement such content: "information about the performance of teleradìoorganìzacìâmi and providers of software services requirements for disclosure of individually controlled target holders (controllers), related persons and about the ownership structure;

4) in article 17: Add the second part of the second paragraph of the following contents: "the National Council has the power to make regulations only in cases stipulated by law;

add sections of fifth and sixth the following contents: 5. every act of individual actions the National Council must contain the motivuval′nu part, which shall include at least the following information: a link to the norm of the current law, which empowers the National Council the authority to accept a specified act of individual actions;

the circumstances of the occurrence of which the laws of Ukraine, associate of the National Council the authority to take the appropriate Act, as well as links to evidence, which confirmed the occurrence of such circumstances.

6. In addition to the General requirements specified in part five of this article, the decision to refuse to issue a license, the decision to refuse the extension of the term of the licence shall contain at least the following information: reason for denial: the circumstances of which the National Council was taking the decision to refuse to issue a licence or a decision to refuse the extension of the term of the license;

normative substantiation of the decision: link to the norm of law, according to which set NCAA circumstances give it the right to refuse to issue a license or in the continuation of the license;

justification the provision of benefits to other members: in the case of a decision to refuse to issue a license according to the results of competition in decision notes or small entity in respect of which the decision on rejection, statutory benefits to obtaining a licence, or have had other persons the same or other advantages of which reasons was the National Council by providing a preference regarding the issuance of a license to the winner of the contest, and not to the applicant.

2. The law of Ukraine "on television and radio" (Supreme Council of Ukraine, 2006 p., no. 18, article 155 of the following changes): 1) in article 1: Supplement with regard to alphabetical terms the following contents: "Jabil Affiliate" person-any legal entity that has a significant part in the subject of information activities in the field of television and radio broadcasting ";

"a significant part-direct and/or indirect ownership entity independently or jointly with other persons 10 and more percent of the share capital and/or the right to vote shares (shares, shares) subject of information activities in the field of television and radio broadcasting or independent of the formal possession of the possibility of a significant impact on the management of such a subject of information activities. The person recognized as the owner of a substantial indirect participation regardless of whether the owner's direct control, it carries out a substantial participation in the subject of information activities in the field of television and radio broadcasting or control of any other person in the chain of possession corporate rights specified subject information activities;

"the ultimate beneficial owner (Controller)-an individual who independently from formal ownership has the ability to exercise a decisive influence on the management or business entity information activities in the field of television and radio, directly or through other persons, which is carried out, in particular, through the implementation of the rights of possession or use of all assets or their significant share rights of decisive influence on the formation of survey results, as well as committing transactions that provide the ability to define the conditions for economic activity, provide binding instructions or perform the functions of the body, or that has the ability to make an impact through direct or indirect (through another natural or legal person) the possession of one person alone or together with associated physical and/or legal entities share in the subject of information activities in the field of television and radio broadcasting ";

"the chain of possession corporate rights-information about the composition of the founders, members, shareholders, the subject of information activities in the field of television and radio, which includes data on the founders, members, shareholders of the first and each subsequent level of corporate rights of the subject of information services in the field of television and radio broadcasting";

"indirect ownership of substantial participation-the possession of a person alone or together with other persons at least one of the following rights and authorization: controlling the direct owner of a substantial participation in tv;

control group direct owners legal entities that are direct owners of substantial participation in tv;

right to vote at the general meeting of members (shareholders) tv with a share (stocks, shares, etc.) at a rate of 10 percent or more of the share capital (aggregated), which is based on any not forbidden by the law the basis (except in cases where the right to vote on behalf of 10 percent or more of the share capital (aggregated), the subject of information activities in the field of television and radio broadcasting is provided by the trustee to the person who is in labor relations with the principal or when the Attorney determined the list of items on the agenda of the general meeting, indicating that as that (against) the solution you need to vote);

the presence of people (Group of people), regardless of the formal possession of the possibility of decisive influence on the management or activity subject information activities or any of the following in this definition;

the control group of persons that control of any of the following in this definition persons ";

"public company-legal person, established in the form of a public joint stock company, shares which are included in the stock lists (passed listing procedure) exchanges that meet the criteria defined by the National Bank of Ukraine. It is believed that public company has people who have substantial participation, over it, and that is not the final benefìcìarnogo the owner (Controller);

"ownership structure system of relations of legal and physical persons, which allows you to specify: all owners, members, shareholders, the subject of information activities in the field of television and radio broadcasting (television and radio institutions or ISP software services), including individually controlled owners (controllers), and in their absence-all owners, members, shareholders, the subject of information activities in the field of television and radio, and all individuals and owners, members, shareholders, legal entities at all levels of the chain of possession corporate rights of the subject of information activities in the field of television and radio broadcasting (except public companies);

all persons who have directly or indirectly substantial part in the subject of information activities in the field of television and radio broadcasting;

all key participants in each legal entity in the chain of possession corporate rights such a subject of information activities in the field of television and radio broadcasting;

attitude control on the subject of information activities among all individuals listed in the second and third paragraphs of this definition;

the term "owner" tv and put in the following wording: "the owner of the subject of information activities in the field of television and radio-physical person or legal entity, on which there are no individuals who owns straight or insecurity; a significant participation of the subject information activities in the field of television and radio broadcasting (except for individuals who perform indirect ownership of substantial participation by proxy, with no other signs of indirect ownership). The ultimate beneficial owner (Controller) is the owner of the subject of information activities in the field of television and radio broadcasting ";

the term "control of the founder (co-founder), owner (co-owner) tv" lay in the following wording:
"control-ownership share of the share capital of legal entity in the amount of more than 50 percent, except for preferred shares or the right to more than 50 percent of votes in the highest management body of the legal person, or the possibility to exercise a decisive influence on the management of a legal entity on the basis of transaction";

the term "related person" is put in the following wording: "associated with the subject of information activities in the field of television and radio broadcasting-individuals who have substantial involvement in the subject of information activities in the field of television and radio broadcasting; executives, affiliates of the subject information activities in the field of television and radio broadcasting; persons who have a substantial participation in affiliated persons subject of information activities in the field of television and radio broadcasting; family members (husband, wife, children and parents, stepmother and stepfather, mother, brothers, sisters and their children, husbands and wives) owners of the subject information activities in the field of television and radio broadcasting; legal persons in which the individuals mentioned above, there are managers or owners of substantial participation; Studio producer, which is the subject of information activities in the field of television and radio during the calendar year generated economic operations totaling more than 50 million hryvnas (excluding value added tax);

the term "subject information activities" to lay out in the following wording: "the subject of information activities in the field of television and radio broadcasting-legal entity that carries out economic activities in the field of television and radio (Organization, provider of software services, etc.);

2) the second sentence of article 8 of the outline in the following wording: "in particular, no natural or legal person individually and/or jointly with a group of connected persons shall not be entitled to control in any way, including through the impact on the formation of managerial oversight and/or tv or by controlling owner of television and radio institutions, more than 35 percent of the total volume of the corresponding territorial teleradìoìnformacìjnogo market-nationwide regional or local ";

3) to article 12: part the second lay in the following wording: "2. In Ukraine, it is forbidden to establish and participate in teleradìoorganìzacìâh or provajderah software services: the bodies of State power and bodies of local self-government, legal persons, which they founded, at all levels of the chain of possession corporate rights tv, if the decision about their creation or provision for them does not provide the authority to establish tv;

legal entities and individuals-entrepreneurs, registered in offshore zones, the list of which is approved by the Cabinet of Ministers of Ukraine, as well as persons without citizenship;

individuals and legal entities that are resident in the country, recognized by the Verkhovna Rada of Ukraine State aggressor or invader State, as well as legal entities, the participants (shareholders) of which there are the following legal or natural persons at all levels of the chain of possession corporate rights tv and end vigodooderžuvačam;

political parties, Trade Union, religious organizations and individuals, which they founded, at all levels of the chain of possession corporate rights tv or provider of software services;

citizens who for conviction are serving sentences in places of deprivation of liberty or recognized by court incapable ";

After a third-part to supplement the new part of the following content: "4. the ownership structure of subject of information activities in the field of television and radio broadcasting is recognized as transparent if the information published on his official Web site and provided to the National Council, enables you to identify all persons who have directly and/or indirectly substantial part in the legal entity or the possibility of significant or decisive influence on the management and/or activity of the legal person , including the relationship between all parties in the chain of possession corporate rights regarding this legal entity, as well as to determine the final benefìcìarnogo of the owner.

Information on ownership structure of subject of information activities in the field of television and radio is placed on his official Web site in accordance with the requirements of this law.

Subject of information activities in the field of television and radio each year presents the National Council information about its ownership structure in the manner and form established by the NCAA. Failure to file, late submission of such information or the submission of information that does not correspond to reality, are the basis for application of NCAA sanctions in accordance with this law.

In case of technical errors in the information on the ownership structure, submitted to the National Council, the subject of information activities in the field of television and radio broadcasting must within two weeks to fix it. "

In this regard, part of the fourth and fifth take respectively parts of the fifth and sixth;

4) in article 24: in part 1 of the words "legal person" to replace the words "the applicant legal entity;

in the second the word "tv" replacing the word "applicant";

part three: the first paragraph, the word "Organization" to replace the word "Applicant";

in the text of the second-fourth the word "tv" to replace the word "applicant";

supplement paragraphs sixth-the thirteenth such content: "information about the participant that has substantial participation, and individually controlled target holders (controllers) tv and provider of software services.

This information should include: for individuals-surname, name, patronymic (if any), citizenship, series and number of passport of Ukrainian citizen or foreigner's passport, residence, registration number of taxpayer's registration card (if applicable);

for legal entities – the name of the State in which the entity is resident, the identification code of the legal person, the place of registration of the legal person;

information about the target benefìcìarnogo the owner (Controller) (individually controlled owners (controllers) tv, including the final benefìcìarnogo the owner (Controller) (individually controlled owners (controllers) of its founder, if the founder is a legal entity, namely: surname, name, patronymic (if any), citizenship, series and number of passport of Ukrainian citizen or foreigner's passport, residence, registration number of taxpayer's registration card (if any), information in accordance with the Declaration of the property , income, expenses and liabilities of a financial nature;

information about the ownership structure of the applicant, its affiliated and related entities by form, set the NCAA, which should contain a comprehensive list of information on the ownership structure of subject of information activities in the field of television and radio.

Documents for foreign legal persons or natural persons-aliens, or issued by the authorities of a foreign country must be submitted to the National Council for translation into Ukrainian language, zasvìdčenim. Documents issued by the authority of the foreign State shall be certified by a notary of the place of issue and legalized in the established order, unless otherwise provided by international agreements of Ukraine, consent to be bound by the Verkhovna Rada of Ukraine.

The National Council shall require from the applicant correcting the flaws in the filed documents, it sends a request to the applicant not later than on the tenth day after the receipt of the application for extradition (continued) license. To correct the deficiencies to the applicant is granted a reasonable period, which may not be less than 14 calendar days from the date of receipt by the applicant of the corresponding request. This period may be prolonged by the NCAA reasoned request of the applicant, but not more than 30 days. At the time, provided the applicant to correct the defects, calculate the timing of the consideration of an application for the issuance of a license (continuation) stops, except consideration of applications on a competitive basis;

second paragraph of part five add the words "as well as legal entities that are included in the ownership structure of the applicant, including copies of deeds and other documents, on the basis of which any of the owners of the applicant has acquired direct or indirect substantial participation in the legal person who has submitted an application for extradition (continued) licenses, and also, if you have reasonable doubt in the reliability of information provided by the applicant of the information based on the motivated request of the National Council-copies of documents that enable you to draw a conclusion about the property status of any of the owners of the applicant: Declaration of the property status and income (payment of the tax on the income of natural persons and the absence of tax obligations of such a tax) (in the case of filing such return) for the year preceding the year in which the request is directed by the established form (in the case of income derived in Ukraine) and/or the certificate of the authorized body of the State of residence of the alien about his income and about the status of performance of obligations of the taxpayer ";

After parts of the sixth supplement the new part of the following content: "7. The National Council in the case of submission of incomplete documents (including non-performance or untimely execution of the request by the applicant under paragraph second part five of this article) or nonconformity with the requirements of this law, or if the submitted documents do not meet requirements for transparency of ownership structure of the applicant, shall adopt a decision on the return of the documents to the applicant without review.

The decision of the National Council must contain a reference to the grounds provided for in this part, of which the National Council has adopted the decision to return the submitted documents to the applicant without review, and may not be based on assumptions.
After removing the specified in the decision of the National Council for reasons that became the basis for the return of the documents to the applicant without consideration, the applicant can re-submit to the National Council of corrected documents within 10 calendar days, with the date of submission of the application is considered to be the date of the first filing ".

In connection with this part of the seventh-the eleventh count in accordance with sections of eighth-twelfth;

part of the dive to supplement paragraph second such content: "the decision to refuse to issue a license must meet the requirements established by article 30 of this law;

5) part of the čotirnadcâtu article 25 supplement to "e" of this "e) for one year to the day of submission of the application does not meet the requirements of this violation of the law regarding disclosure of any end individually controlled owners (controllers) of all the related parties and ownership structure";

6) article 30: in part the second: "would" lay out in the following wording: "b) indicated in a statement and added to it the documents of information, including information about the terminal owners individually controlled (controllers), at the time of its submission are not true, confirmed documented";

Supplement to "e" of this "e) ownership structure tv and/or its founder (founders), which acquires (acquire) substantial involvement is not transparent in the sense of the law;

part of the third supplement the paragraphs in the second-fourth the following contents: "the decision to refuse to issue a license must contain a detailed justification of the reasons, of which the National Council has adopted this decision, with reference to specific provisions of this law, established during the consideration of an application for license, confirmed documented and relevant evidence.

Grounds for refusal to issue a license to broadcast on a competitive basis is lack of information about the structure of ownership of tv and/or information about its final owners, and individually controlled by their absence-of all owners and participants of tv and all natural persons and legal persons and participants at all levels of the chain of possession corporate rights tv, or if such information is not true.

In addition, the grounds for refusal to issue a license to broadcast on a competitive basis is determined by this Law benefits as another applicant, who won on the results of competition ";

7) of Shostakovich's thirteenth article 35 the words "State Register of Ukrainian media" replace the words "the State Register of subjects of information activities in the field of television and radio broadcasting";

8) in article 38: in the title the words "State Register of Ukrainian media" replace the words "the State Register of subjects of information activities in the field of television and radio broadcasting";

first part of after "licensed to broadcast" add the words "and the license service provider software services";

in the second the word "Tv" replaced by the word "persons";

part of the fifth put in the following wording: "5. The State registration of business entities that have received a license to broadcast and/or the license service provider software services, is carried out by means of amendments to the State Register of subjects of information activities in the field of television and radio in a three day period from the date of issuance of the licence;

in parts of the seventh, tenth, eleventh, twelfth, the word "organization" in all cases and numbers to replace the words "the subject of information activities in the field of television and radio broadcasting" in the appropriate case and number;

part of the eleventh after the words "the license for broadcasting" add the words "licensed providers of software services;

in its first paragraph: after the words "license (license) to speech" add the words "and/or license (license) software provider services";

point "d" lay in the following wording: ") end benìfìcìarnih the holders (controllers);

Click "is" add the words "or of the license service provider software services";

in the "s" words "(types of) broadcasting a" substitute "for the media-type (types of) broadcasting;

in the paragraph "and" words "territorial characteristics of" substitute "for media and territorial characteristics";

in part the 14th Word, and twice a year and publishes them in the official newsletter of the National Council exclude;

the text of the article the words "State Register of Ukrainian media" in all cases to replace the words "the State Register of subjects of information activities in the field of television and radio broadcasting" pronounced;

9) article 40: in part 1 of the words "(broadcasting) of cable television and radio broadcasting", replace the words "a provider of software services;

part of the third supplement paragraphs fourth-sixth such content ") information about the ownership structure of the applicant, indicating the data about all of the final owners individually controlled (controllers) and related entities (for each of the individuals-surname, name, patronymic, date of birth, nationality, address).

If there is no service provider individually controlled software owners included information for all owners and provider of software services and all natural persons and legal persons and participants at all levels of the chain of possession corporate rights the provider of software services.

Information about the ownership structure of the applicant should contain information on all individuals owning a stake of 10 percent or more in the authorized capital of the applicant, as well as all legal entities that bind the applicant with all of its final benefìcìarnimi owners (controllers) (for each of the individuals-surname, name, patronymic, date of birth, nationality, address);

in part 4 the words "the activities (broadcasting) of cable television and radio broadcasting", replace the words "a provider of software services;

Add part of the ninth the following contents: "9. the provider of software services shall: a) each year, by 31 March, publish on its official Web site and submit to the Council a report for the previous (fiscal) year of activity, which contains information about any changes in the structure of ownership during the reporting year;

information about all terminal owners individually controlled (controllers) and related entities (for each of the individuals-surname, name, patronymic, date of birth, nationality, address);

information about persons who during the reporting year provided the ISP software services financing (loans, loans, financial aid, etc.), if the total amount of such funding from one person during the reporting year amounted to 125 or more minimum wages;

b) post on its official Web-site of information on ownership structure ";

10) in article 59: the first part of the supplement to "th" such content: "th) post on its official Web-site of information on the ownership structure in the form established NCAA";

Add a second part following contents: "2." owes every year before 31 March, submit to the Council a report for the previous (fiscal) year of its ownership structure, which contains information about the ownership structure as at 31 December of the financial year;

information about changes in the structure of ownership, which took place during the fiscal year;

information on all persons who own or owned during the reporting year, direct or insecurity; a significant participation, indicating the reason for such possession (date of the conclusion of the relevant contracts or the occurrence of other legal facts), including information about the persons who had acted on the basis of the respective orders, as well as information about all related persons (for each of the individuals-surname, name, patronymic, date of birth, nationality, address).

Report form, the order of its drafting and examination approved by the NCAA;

11) of the tenth article 72 paragraph supplement the second such content: "for failure to file or delayed the submission of the information provided by the second part of article 59 (for the media) or part of the ninth article 40 (for providers of software services) of this law, the organization or the ISP software services shall pay a penalty equal to 5 percent of the total license fee for all licensed owners of which there is an intruder, in accordance with article 31 of this law."

II. Final provisions 1. This law shall come into force on the first day of the month following the month of its publication.

2. The National Council of Ukraine on television and radio for two months from the date of publication of this law to approve the procedure teleradìoorganìzacìâmi and providers of software services, information on the ownership structure and the appropriate form.

3. Tv, broadcasting on the basis of the applicable licenses, and providers of software services within six months from the date of enactment of this Act serves information about its ownership structure and scheme of the ownership structure of the National Council of Ukraine on television and radio in accordance of the ninth article 40 (for providers of software services) or part two article 59 (for the media) of the law of Ukraine "on television and radio broadcasting".

After the entry into force of the decisions of the National Council of Ukraine on television and radio on approval of the procedure for filing teleradìoorganìzacìâmi software and service providers information on the ownership structure and approval of appropriate forms of documents and tv providers of software services serves the information according to your chosen solutions order form. Prior to making such decisions the information is submitted to the National Council of Ukraine on television and radio broadcasting in any form, but must provide all the information stipulated by articles 40 and 59 of law of Ukraine "on television and radio broadcasting".

The President of Ukraine p. POROSHENKO Kyiv September 3 2015 # 674-VIII