A new law on insurance which came into force 11 April 1996 established a minimum share capital requirement for Ukrainian owned insurance companies of ECU 100,000 while for companies with foreign participation the minimum capital requirement is ECU 500,000. Companies formed before the law took effect are given until 1 January 1997 to comply. The law provides that at least 60% of share capital must be contributed in cash and one insurer may not own more than 5% in any other insurance company with investment in other insurance companies limited to 20% of its share capital. Foreigners may not hold more than 49% of share capital of an insurance company. The law provisionally authorises agency agreements between resident and foreign insurers involving the sale of mandatory insurance required under foreign legislation until such time when Ukraine joins international conventions providing for the recognition of the policies issued by Ukrainian insurers in these countries. (Law No 85 of 7 March 1996)
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