Amendments to the Law of Ukraine ‘On Limited Liability and Additional Liability Companies’
Tax & Legal Alert
4 November 2019
The following amendments have been made to the Law of Ukraine ‘On Limited Liability and Additional Liability Companies’:
- Verkhovna Rada of Ukraine abolished the requirements regarding obligatory approval of the transactions exceeding 50% of the net assets of the LLC as of the end of the previous quarter (significant transactions) by the general meeting. This mandatory rule became ineffective from November 01, 2019.
Since November 02, 2019, companies are allowed not to obtain approval of the general meeting if the Charter directly stipulates that conclusion of the significant transactions does not require the approval of the general meeting.
If abovementioned provision is absent in the Charter, the significant transactions need to be approved by the general meeting.
In addition, the value of the net assets of the LLC shall be calculated according to the last financial statement instead of calculation as of the end of the previous quarter.
- The creditor`s notification procedure for separation or liquidation of the company has been changed: publication in the printing authority is replaced by the publication on the portal of electronic services of legal entities, private entrepreneurs and non-governmental organizations automatically in real time using the software of the Unified State Register.
- The activity of the companies based on the model Charter is now regulated. This rule entered into force on October 17, 2019.
We will be happy to provide you with advisory support on all issues you may have in relation to the aforementioned legislative changes.