How to change the legislative field for the owners of the LLC.

on March 12, the President of Ukraine signed the Law “On limited liability and additional liability”, which will enter into force three months after the official publication of the text. The basic philosophy of the document is that flexibility and optionality. Now the company will be able to choose the rules by which they live.

with the Exception of some critical issues that are imperative, which means that all conceptual “doilies” and papers “knee” can be framed in legally significant acts which are properly to protect the interests of all parties. What tools brings the law and what it means for business?

1. Institute of corporate contracts

the Necessary and long-awaited innovation, which with a high degree of flexibility allows the LLC members at any stage of existence of the company to agree on how they will act in the future. This tool will allow you to avoid many of the conflicts among the member businesses, their creditors and the like.

2. The possibility of creation of the Supervisory boards

will Allow owners to more effectively monitor management. Along with that’is a series of tools that can provide accountability as Directors and members of the Supervisory Board of the company for the caused damages.

3. The mechanisms for more efficient management of the company

Changed the order of making decisions by the LLC members, and provides other management tools and monitoring by members.

4. The right loan or financing secured by the member's share

This will make it easier to attract additional funds for business. Moreover, the procedure is the possibility of collecting the shares of the lender.

5. Introduces the procedure of negotiation and conclusion of major transactions and related party transactions

Participants have the right to determine the LLC's Charter, the agreement is significant for them. Such rules will allow each individual to regulate financial discipline in companies.

6. Increases the security of the owners

the Law contains provisions that reduce the risk of raider attacks and the risks of blurring a share of the company. With the entry into force of the law of minority participants may be excluded only by a court order. In addition, removed restrictions on the formation of capital and simplifies the registration procedure of inheritance of shares in the share capital of the company.

Artem Kuzmenko, a senior lawyer Law Eterna

Source: https://kfund-media.com