28.07.2026
On July 16, Energy Club held the forum “Corporate Governance in Energy: From Formal Rules to Real Responsibility,” which served as the final offline discussion of the business community’s three-month special project. Representatives of state bodies, energy companies, supervisory boards, international financial institutions, and the expert community discussed practical aspects of corporate governance: how to balance the state as an owner and executive management, what the role of supervisory boards should be, how to evaluate their effectiveness, and how to implement international standards without losing operational control over strategic enterprises.
One of the key speakers at the forum was Maksym Nemchynov, Vice President of Energy Club, former Deputy Minister of Energy of Ukraine, and former member of the first supervisory board of NPC Ukrenergo. Drawing from his own experience, he shared his vision of why corporate governance begins not with new reforms, but with strict compliance with laws, professional personnel, and a clear division of responsibility among all process participants.
“There powers were sufficient. We simply needed to follow the law”
Maksym Nemchynov noted that Ukrainian legislation in corporate governance has long contained all the necessary tools for effective operation. “For me, the best reform is simply following the laws. There is a law — just follow it,” the speaker emphasized.
Recalling the work of Ukrenergo’s first supervisory board, he stressed that the board had complete autonomy to make key decisions. “We did not lack powers. We elected the chairman of the executive board, formed committees, approved strategies, and performed our functions. No one from the ministry instructed us on how to vote,” Maksym Nemchynov stated.
In his opinion, constant legislative changes often serve as a cover for a lack of political will or an attempt to shift responsibility. “As long as we keep modifying laws to suit specific individuals or political circumstances, corporate governance will not function,” the expert highlighted.
Supervisory board as a strategic organ, not an operational controller
A key focus of his speech was defining the boundaries between the functions of the supervisory board and company management.
Maksym Nemchynov noted that a supervisory board should deal with strategic planning, risk management, internal control, and CEO selection, rather than interfering in daily operational activities.
“The supervisory board cannot substitute for management. Its task is to set strategic direction, establish control mechanisms, and evaluate management results. When a supervisory board begins attempting to manage daily processes, it loses its objective strategic perspective,” the speaker explained.
Professional competence over legal formalism
Addressing the role of chief executives in energy enterprises, Maksym Nemchynov emphasized that professional qualifications are fundamental to operational safety.
He reminded that according to current legislation, the head of an energy company must be a certified energy engineer with appropriate education, experience, and licensing, as they bear personal responsibility for operational decisions and power system safety.
The speaker also addressed the selection process for supervisory board members. He raised questions regarding the transparency of competitive selection procedures and candidate shortlisting. The quality of this selection process, in his view, directly dictates the efficiency of the entire corporate governance framework.
Strategic oversight in practice: addressing systemic paradoxes
To illustrate real strategic work of a supervisory board, Maksym Nemchynov cited historical discussions regarding the rapid expansion of solar generation.
At that time, a key challenge emerged: how the transmission system operator would balance the grid following the issuance of numerous grid connection technical specifications for solar power plants — a challenge known professionally as the “solar-coal paradox”. Such complex, long-term technical and economic challenges, he stressed, should be the subject of a supervisory board’s strategic oversight, rather than operational micro-management.
Key Takeaways
Summing up, Maksym Nemchynov emphasized that effective corporate governance does not require constant rewriting of regulations. Far more essential are:
Unconditional adherence to these principles serves as the core foundation for managing state-owned energy enterprises effectively.
