New Law of Ukraine "On Limited Liability Companies" was published

On 6 March 2018, the Law of Ukraine New "On Limited Liability Companies" dated 6 February 2018 № 2275-VIII (hereinafter referred to as “the Act”) was published[1].

The main novels of the Act are the following:

  • signatures in the first edition of Articles of Association must be notarized;

  • company members are entitled to enter into corporate contracts regulating corporate rights and obligations[2];

  • he procedure for the Articles of Association amendments, changes in the authorized capital and decisions with regard to the winding-up of the company was changed;

  • new rules of succession of company’s shares were introduced;

  • legal status of the company’s bodies (in particular, supervisory board and company’s officials) was defined more specifically;

  • board meetings can be hold by means of electronic communications;

  • company shall keep corporate documents during the entire period of its operating;

  • the procedure of withdrawal from society was amended.

The Act comes into force on 17 June 2018.

The transitional provisions of the Act establish a transitional period of one year after the date of its entry into force. During the transitional period companies shall amend their Articles of Association in accordance with the Act. At the same time, companies are released from the fee for registering the amendments.

[1] http://zakon5.rada.gov.ua/laws/show/2275-19

[2] more detailed information on concluding the corporate contracts is in the Grata’s regional digest (March 2018)