Lawyers seek to Improve the Draft Law of Ukraine "On Limited Liability Companies"
On January 28, 2010, Anna Babych and Oksana Zizda, the experts of Vasil Kisil & Partners, attended a Round Table Discussion on 'Limited Liability Companies: Problems and Prospects for Improving the Operation,' which was held by the State Agency of Ukraine for Investments and Innovations. The event was also attended by the representatives of SigmaBleyzer, ÍÎÅÐÐ, advisors of Verkhovna Rada Committee for Economic Policy and United Nations Development Program Blue Ribbon, etc.
The attendees discussed Draft Law No. 5507 "On Limited Liability Companies," which was submitted to Verkhovna Rada at the end of last year. In spite of addressing a lot of current issues, this Draft Law needs to be refined. Such conclusion was made by the round table participants.
Meanwhile, the Ukrainian legal framework has no separate law, which would deal with problems of safeguarding the interests of investors and the State in the activities of LLCs. The present discussion has become Ukraine's one more step towards addressing the urgent problems of the operation of LLCs. In particular, Round Table participants offered the following recommendations:
The attendees discussed Draft Law No. 5507 "On Limited Liability Companies," which was submitted to Verkhovna Rada at the end of last year. In spite of addressing a lot of current issues, this Draft Law needs to be refined. Such conclusion was made by the round table participants.
Meanwhile, the Ukrainian legal framework has no separate law, which would deal with problems of safeguarding the interests of investors and the State in the activities of LLCs. The present discussion has become Ukraine's one more step towards addressing the urgent problems of the operation of LLCs. In particular, Round Table participants offered the following recommendations:
- The Charters of LLCs should be more flexible than those of joint-stock companies. A European path should be followed to simplify the procedures of foundation, capital increase, and receipt of additional financing (e.g., by issuing bonds, even by liquidating the company);
- The liability of hired employees to investors should be increased. Owners should have a possibility to promptly convene a meeting and dismiss an unscrupulous director;
- Investors should have access to any information of the company whatsoever. If, in the case of JSC, it would be reasonable to transfer such right to specialized audit firms, the LLC participants hope for complete transparency, including current information.
- The creation of favorable conditions for investment activities in Ukraine is one of the most important directions enabling to shape and ensure the implementation of the national policy in the sphere of investments and innovations.
"A more flexible regulation of the competence of LLC's managing bodies and simplification of the procedural issues in the LLC's Charter will enable to enhance the investment attractiveness of this form for foreign investors," - said Mrs. Babych, a Counsellor of Vasil Kisil & Partners.