Ruslan Sydorovych: “The new law on private limited companies is a big step forward”

Today, the parliament adopted a new version of the law on private limited companies. According to Samopomich MP Ruslan Sydorovych, today in Ukraine there are about 560 thousand private limited companies, and usually these are small and medium-sized businesses. That is why the adoption of this law is so important.

The most important innovation, in comparison with the old version of the document dated 1991, is the fact that from the moment the law’s coming into force, all basic legal relations in the companies will be regulated by spelling out the relevant norms in the charter and the corporate contract, which will be concluded between all the company participants.

“That is, the main area of responsibility is shifted to the participants themselves. And this is right, because entrepreneurship is a free activity. The state should not restrict citizens in terms of how they want to agree among themselves. This is right, it corresponds to the spirit of freedom of business activity and freedom of contract,” the MP notes.

In addition to this, Samopomich faction managed to defend a very important regulation, which makes it impossible to deprive heirs of their right to own a share. Also, the deputies insisted on not including procedural law regulations into the text of the law, which could have significantly complicated its clarity not only for ordinary citizens, but also even for lawyers.

It should be noted that for a year after the adoption of this law, the norms of the previous legislation will still continue to apply to those private limited companies that are already operating.

The people’s deputy explains, “This is done in order to give businesses time to bring their statutory documents in line with the current legislation, to sign corporate agreements and to coordinate all the issues.”

“The old law on private limited companies has long been outdated; people had to find ways out and to actually operate on the fringes of the law. The adoption of the new version of the document will increase the investment attractiveness, create more modern conditions for entrepreneurship, and allow for a more transparent organization of the relationship between the co-owners of private limited companies,” believes Ruslan Sydorovych.

Ruslan Sydorovych
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