On August 28, the Economic Code of Ukraine officially expired. This is notified on the website of the Verkhovna Rada.
“The old, Soviet Economic Code, adopted in 2003 in opposition to the pro-European Civil Code, has turned into an emasculated legal act, which mostly consists of reference (blanket) norms”, explained the Speaker of the Parliament Ruslan Stefanchuk.
From now on, a three-year transitional period will start, during which certain provisions of the Economic Code will remain in force. During the first six months of this period, all state-owned enterprises must be transformed into joint-stock companies or limited liability companies with 100 percent state ownership.
If the authorized body does not decide on the reorganization or liquidation of the state enterprise, the Cabinet of Ministers will be obliged to transfer its single property complex to the State Property Fund, which will determine the further fate of this enterprise.
The law also provides for the reform of the institutions of the law of economic administration and the law of operational management, which were previously the basis of the legal regime of property of state sector entities. After the completion of the reforms, only ownership or usufruct of state property (personal free ownership and use) will remain.
From the date of entry into force of the law, it is prohibited to create legal entities in the form of state enterprises (state commercial, non-commercial and public), communal enterprises (commercial and non-commercial), joint communal enterprises, private enterprises, foreign enterprises, subsidiary enterprises, enterprises of citizens’ associations (religious organizations, trade unions), as well as consumer cooperative enterprises.
Thus, Ukraine is moving to a simplified system of organizational and legal forms, leaving only limited liability companies, joint-stock companies and other modern corporate forms that meet European business standards.
Three years after the introduction of the law, it will be prohibited to make any changes to the register of state and communal enterprises and joint communal enterprises, except in cases of liquidation or transformation, change of management, transfer of property of state-owned enterprises to the State Property Fund or within bankruptcy procedures.
