A law was adopted to encourage investment activity in Ukraine

On September 20, the Verkhovna Rada passed the Law on Investment Promotion in Ukraine (project № 1059).

In particular, the following changes are foreseen.

In the field of shareholder protection:

- liability of the persons with interest and officials of the joint-stock company for losses caused by the transaction with interest concluded on non-market terms, the consent of which was made by the majority shareholder or their appointed persons;

- expanding the list of transactions with interest;

- election of an independent auditor of a public limited company solely by a general meeting of shareholders;

- mandatory redemption offer by shareholders who acquire 50% of the company's shares;

- expanding the list of transactions that are considered to be transactions of interest.

In the field of justice:

- demand by a commercial court of a group of the same type of evidence (without specifying the individual features of each document required);

- implementation of the standard of proof of "higher probability" in economic matters.

Changes to the EPC:

- circumstances recognized by the parties to the case are not subject to proof unless the court has reasonable grounds to consider them unreliable or recognized in connection with coercion;

- an indictment of a court in criminal proceedings or a court order holding a person administratively liable is binding on an economic court hearing a case on the legal consequences of the actions or omissions of a person against whom a judgment or ruling has been rendered, only in the matter of the place of these actions (inaction) and whether they are committed by that person;

- the circumstances established by the decision of the arbitral tribunal or international commercial arbitration, the acquittal of the court in the criminal proceedings, the decision to close the criminal proceedings and the release of the person from criminal liability, are subject to proving in general procedure in the case before the economic court;

- the evidence created (received) in the absence of influence aimed at forming a false perception of the circumstances of the case relevant to the case is reliable.

In the sphere of ensuring contractual obligations:

- the obligation may be secured by transferring to the creditor the property of the security object;

- the creditor is the owner of the property (as opposed to the pledge) and can realize the object of collateral on his own behalf in case of default by the debtor;

- the security object is not included in the debtor's or creditor's liquidation estate, and therefore the bankruptcy proceedings will not prevent the foreclosure proceedings (unlike the pledge, where the bankruptcy procedure may block the foreclosure proceedings for several years);

- the creditor's status as a trustee limits the ability of the debtor to withdraw the security object from encumbrance and to avoid performing the obligation.

In the field of construction:

- payment of the share contribution to the development of the settlement's infrastructure is abolished.

In the field of contracts of pledge of land:

- expert monetary valuation of privately owned land plots canceled.

In the field of limited liability companies:

- legal risk reduction is foreseen by regulating issues related to the model charter of a limited liability company.

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