Law of Ukraine “On Amending Certain Legislative Acts of Ukraine Concerning the Protection of Property Rights”

Verkhovna Rada of Ukraine continues to impress the society with the unprecedented pace of law making.  The figures speak volumes about: according to official information, only 220 laws were adopted at the 2nd session.  Of course, in such a situation, it is very difficult to “have your finger on the pulse”, but it is necessary, because the bills adopted yesterday will determine the legal reality of tomorrow.

Therefore, with the purpose of facilitating the lives of our readers, we offer a quick overview of the news of the legislation.

Today we will talk about the Law of Ukraine “On Amendments to Some Legislative Acts of Ukraine on the Protection of Property Rights”, which came into force on November 2, 2019.

In short, the Law has to do with changing the procedure for registering real estate or corporate rights transactions, which, in the authors’ opinion, should “provide additional guarantees of property rights protection in Ukraine.”  In practice, such “additional guarantees” are as follows.

  • Narrowing down the circle of subjects entitled to take registration actions. According to the provisions of the Law, accredited subjects of state registration (for example, Public Utility Company “Gotovo” – (“Finished”), Public Utility Company “Kyiv City Bureau of Technical Inventory”, etc.) are not allowed to make registration actions in the fields of state registration of real property rights and their  encumbrances, as well as state registration of legal entities, natural persons – entrepreneurs.
  • Return to the principle of territoriality of registration actions. The place of registration of legal entities and public entities will now depend on the form of the documents submitted: if the paper is within the Autonomous Republic of Crimea, oblasts, cities of Kyiv and Sevastopol, it will be registered by their location; if electronic – registration will be held regardless of their location. Registration actions for natural persons – entrepreneurs will be performed regardless of their place of residence. State registration of property rights and other corporeal rights will be performed within the Autonomous Republic of Crimea, oblasts, cities of Kyiv and Sevastopol by location of real estate.
  • Change of requirements to the form of the contract, the subject of which is the alienation (transfer) of a share in the authorized capital of the company. If it was enough to use a simple written form to enter into a contract for the purchase and sale of corporations laws earlier, then the Law already requires their notarization, except for contracts created on the portal of electronic services of legal entities, individuals-entrepreneurs and public entities and signed with the help of EDS  .
  • The list and form of documents confirming the powers of the applicant’s representative for the purposes of registration actions have been harmonized. Powers of Attorney will be confirmed: by a document that confirms the powers of the legal representative of the person, notarized by power of attorney or information from the Unified State Register about the person authorized to act on behalf of the legal entity.
  • The number of applicants for the purpose of state registration of changes regarding legal entities has been expanded. In some cases, the applicants may be the heirs or successors of the LLC / VAT members, participants leaving the LLC / VAT, persons who have acquired or alienated a share in the authorized capital of the LLC / VAT, the plaintiffs – in the case of filing a judicial decision that has become legal.
  • Information on the timing of the creditors claims filed in the process of legal entity termination will be publicly available. Such information will be published on the portal of electronic services of legal entities, individuals – entrepreneurs and public entities.

-Olena Dvortsova, attorney at  Dynasty Law Firm.

 

Publications 12 November, 2019

Write a comment

Ваш электронный адрес не будет опубликован

4 + 3 =