The new law of Ukraine that changes the regulations of the activity of limited liability companies in Ukraine came into effect on June 17
According to the new rules, all limited liability companies have 1 year to amend the constitutional documents in accordance with the new requirements.
So, what changes?
The new law makes the Articles of Association (Charter of the company) smaller. Now, this document must contain only the provisions on the name of the company, governing bodies and the scope of their competence, the procedure of entry/exit for the members. All the rest can be excluded from the Charter.
The law substantially amends the voting procedures: important issues (such as redistribution of shares, approval of value of the member`s contribution (made in non-monetary form), the establishment of a number of votes necessary for approval must be voted for unanimously by all members of the company. Making amendments to the constitutional documents, increase/decrease of the authorized capital amount shall be supported by 75% of votes, but this number can be changed by unanimous decision of all members.
It also becomes more difficult to leave the company for member holding 50 and more percent of the limited liability company`s share - such action must be supported by all the rest of the members.
It is worth noting that the member of the company cannot be expelled from the company except for the case he fails to make the contribution in full scope.
Even though all business entities were given one-year time to amend the constitutional documents, all of us already must obey the requirements of the new law.
Therefore, don`t forget to check how these new rules influence your business and get prepared in time.
Planning to set up a business in Ukraine? Read our article regarding the first steps.