On 17 June 2018 the overwhelmingly important Law of Ukraine "On Limited Liability and Additional Liability Companies" (the "Law") will become effective.The main aim of the Law is to update, renew and consolidate all legal requirements and recommendations to a limited liability company (the most popular from of doing business in Ukraine) in one document.
Particularly, the Law stipulates the procedure of setting up, termination and reorganization of a limited liability company, the rights and obligations of participants (members) of a limited liability company, corporate governance, requirements to making material and related party transaction by a limited liability company etc.
Comparing to previous laws, the Law foresees the following positive changes: - no restrictions to number of participants (members); - reduced term for paying contribution to the company's capital; - corporate agreements between participants (members); - possibility to create a supervisory board; - cancellation of the requirement of setting up the audit commission; - enhanced procedure of voting at the general participants’ meeting; - possibility to increase the capital by the company's undistributed profit; - more specific right of first refusal procedure; and - much more discretion in corporate governance. Within one year (i.e., till 17 June 2019) all limited liability companies must bring their corporate documents and procedures into compliance with the Law.
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