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TThe new law of Ukraine that came into effect on June 17 changes the regulations of the Limited Liability Companies activity in Ukraine
Due to new rules, all limited liability companies have 1 year to amend the constitutional documents as per the new requirements.
What are the changes?
The new law makes the Articles of Association (Charter of the company) shorter. From now on this document has to contain only the provisions on the name of the company, governing bodies and their competence, the procedure of the entry/exit for the members. All the rest can be omitted from the Charter.
The law heavily amends voting procedures.: Important issues must be voted unanimously by all members of the company, such as redistribution of shares, approval of the member’s contribution value (in a non-monetary form), the number of votes necessary for approval. 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 gets more difficult to leave the company for a member holding 50 and more percent of the limited liability company’s share. Such action must be supported by all the other members.
It is worth noting that the member of the company can’t be expelled from the company except for the case he/she fails to contribute in full.
Even though all business entities were given one year to amend the constitutional documents, all of us have to obey the requirements of the new law now.
Therefore, please check how these new rules impact your business and make sure you are well-prepared in advance.
Planning to set up a business in Ukraine? Read our article regarding on the first steps.
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