The Council plans to amend the legislation on limited liability companies and additional liability companies

The Verkhovna Rada of Ukraine has registered a new draft Law of Ukraine "On Amendments to Article 12 of the Law of Ukraine "On Limited Liability Companies and Additional Liability Companies" to ensure the possibility of creating additional capital by a company and making contributions to the additional capital of a company by its members" (Reg. No. 13002), which proposes to improve the provisions of the Law of Ukraine "On Limited Liability Companies and Additional Liability Companies" in terms of attracting investments (in the form of contributions) to the additional capital of an LLC and to provide for a rule

"At present, the vast majority of such transactions take place offshore," said Yaroslav Rushchyshyn, the main initiator of the draft law, Secretary of the Committee on Economic Development.

"The current legislation does not provide for rules on additional capital in LLCs, which investors could rely on without any reservations and receive legal opinions (so-called legal opinions), without warning of possible risks associated with the gap in corporate law regarding contributions to additional capital that exists now.

The corporate laws of many countries include provisions regulating relations related to or equivalent to contributions to the additional capital of LLCs, as envisaged by the Draft Law (Reg. No. 13002).

It is in Ukraine's interest that Ukrainian and foreign investors have mechanisms and choices for conducting investment transactions within Ukrainian jurisdiction. This will allow not only to attract more active investment in LLCs, but also to potentially increase foreign exchange earnings in Ukraine.

The issue of creating additional opportunities for attracting investments in LLCs was discussed last June at the committee hearings on "Attracting Investments (in the form of additional contributions) to the capital of companies" and during meetings of the Working Group on drafting amendments to the Law of Ukraine "On Limited Liability Companies and Additional Liability Companies" established under the Committee on Economic Development.

Thus, we took into account the comments and developed this legislative initiative."