Briefing note on winding-up of «CB «UNION» PC by the DGF
| Full name of the bank being liquidated | COMMERCIAL BANK «UNION» PUBLIC COMPANY |
| Short name of the bank being liquidated | «CB «UNION» PC |
| NBU resolution on liquidation | On April 28, 2016, the NBU Board approved Resolution # 299/БТ on Revocation of the Banking License and Liquidation of COMMERCIAL BANK «UNION» PUBLIC COMPANY. |
| DGF Executive Directorate’s decision on commencement of the liquidation procedure | On April 28, 2016, the DGF Executive Directorate issued Decision # 615 on Commencement of the Liquidation Procedure of «CB «UNION» PC and Delegation of Powers of the Bank Liquidator. In accordance with Subparagraph 1 of Part 2 of Article 46 of the Law of Ukraine on the Household Deposit Guarantee Scheme (hereinafter – the Law), from the starting day of the bank liquidation procedure terminated shall be all the powers of the bank governance bodies (general meeting, supervisory board and management board) and bodies of control (audit committee and internal audit). Senior managers of the bank are dismissed in connection with the bank liquidation. |
| Starting day of the bank liquidation | On April 29, 2016, the DGF initiated the liquidation procedure of «CB «UNION» PC, appointed the DGF authorized officer and delegated to the officer the powers of «CB «UNION» PC liquidator. |
| Date when the bank liquidation was announced | On May 5, 2016, the official announcement of «CB «UNION» PC liquidation was published in the Holos Ukrainy newspaper. |
| Liquidator of «CB «UNION» PC | The DGF through the authorized officer under the Law. |
| Authorized officer | Vitaliy V. Palamarchuk, Lead Asset Management and Bank Liquidation Specialist of the Bank Liquidation Procedures Division, DGF Bank Liquidation Department. |
| Powers of the liquidator | Powers of the liquidator defined by the Law, particularly, by Articles 37, 38, 47-52, 521, 53, provide that the liquidator shall enjoy the right to sign any agreements related to the sales of the bank’s assets in the manner prescribed by this Law, except for the powers to apply to a bank related party with a claim for damages and file such claim to the court, a claim to a non-banking financial institution, which raised the funds from an individual as a loan or a contribution legally equivalent to deposits as well as the powers to organize the asset sales for the bank. |
| Special powers of DGF in terms of recovering damages (loses) caused to the bank and/or its creditors | According to Part 7 of Article 52 of the Law, the DGF enjoys the right to apply to courts of an appropriate jurisdiction (including foreign courts) with a lawsuit seeking damages (losses) caused to the bank in case of: - finding the decisions, actions or omissions resulted in damages (losses) to the bank and/or its creditors; - identifying the persons who contributed to such decisions-making, actions or omissions and/or received pecuniary benefits; - determining the amount of damages (losses) suffered. DGF enjoys the right to file such lawsuits with the courts of an appropriate jurisdiction (including foreign courts) during the bank liquidation procedure and three years after making the bank termination record (special statute of limitations). |