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Latest business law news. October, 2016

1)  The new approaches to the financial restructuring of the legal entities indebtedness were introduced in Ukraine.

2) Using an approximate indicator of customs value in a risk management system was canceled.

3) The Law of Ukraine "On amendments to certain legislative acts of Ukraine on improving state registration of real estate rights and protection of property rights"  was adopted by Verkhovna Rada.

4) About novations for business entities regarding compliance to the legislation on environmental impact assessment

5) The Cabinet of Ministers has opened data about registration plates of motor vehicles for attorneys and notaries

 

 

The Law of Ukraine "On Financial Restructuring" came into force on October 19. The Law is of interest for businesses that have indebtedness the same as for the banks.

The Law provides the terms and procedure of financial restructuring process of the legal entity, providing certain benefits the same as for debtor[1] and creditor.

We would like to stress out that the process of financial restructuring of a debtor is carried out at the request of the debtor. This means that the procedure is not obligatory.

Still, the Law stipulates the conditions when a legal entity has the right to participate in the process of financial restructuring:

1) A legal entity is in critical financial condition;

2) Economic activity of a legal entity shows considerable promise.

Debtor activity can be recognized as considerable promise, if involved creditors signed an agreement for the financial restructuring and it is confirmed by the report on financial and economic activity of the debtor.

The benefits for the debtor from implementation of the financial restructuring procedure is obvious. In addition, the Law provides tax privileges. For example, the debtor is released from an obligation to pay income tax on the full amount of debt that is forgiven by creditors. The creditors also have some benefits from the procedure of financial restructuring of their debtors. In case of restructuring procedure, the creditors are able to return a larger amount of their money than, for example, in case of debtor bankruptcy.

The Law will be valid till October 19, 2019.

To see the full text of the Law, please follow the link: http://zakon5.rada.gov.ua/laws/show/1414-19

The Cabinet of Ministers of Ukraine Resolution №686 from 05.10.2016 was adopted to replace the Resolution№724 from 16.09.2015 «On using an approximate indicator of customs value in a risk management system."

The decision to cancel Resolution № 724 solves a number of problems that the legal entities faced with when controlling the accuracy of determining the customs value of goods that are transported through the border of Ukraine. In particular, the method of calculating an approximate indicator of customs value which would consider discounts for the product and other deliveriy conditions, which, in turn, significantly affects on the price of goods, was not defined in the Resolution №724.

 

 

The Law of Ukraine "On Environmental Impact Assessment" has been adopted to replace the existing Law of Ukraine "On Environmental Expertise".

 The new developments introduced by the Law of Ukraine "On Environmental Expertise" are the following:

• preparation of report on environmental impact assessment by the business entity;

• public hearings;

• analysis by the authorized body of the information provided in the report on environmental impact assessment, and information received during the public hearings;

• provision by the competent authority of the reasoned resolution on environmental impact assessment, based on the results of this analysis;

• consideration by state and local authorities of the resolution in the approval document, which is the basis for the beginning of the planned activity (final decision);

• post-project monitoring.

Unlike the Law "On Ecological Expertise", the Law of Ukraine "On Environmental Impact Assessment" specifies the list of entities and activities that can have a significant impact on the environment and which are subject to environmental impact assessment.

In particular, the following activities are subject to environmental impact assessment: waste management activity, facilities for intensive poultry operation and hog growing; agricultural and forestry-based industrial development, land cultivation and land reclamation (water resources management for agriculture, including irrigation and land reclamation) on the area of 20 hectares or more; industrial plants for recycling, removal of animal carcasses and / or animal waste; activity in the food industry, textile, leather, wood and paper industry with the output of more than 1 ton per day; economic activity, resulting in the pollution discharge into water objects and water withdrawal from water objects, provided that underground water withdrawal exceeds 300 cubic meters per day.

It is prohibited by the law to start the activities, which are subject to the environmental impact assessment, without environmental impact assessment.

The law provides responsibility for violation of legislation on environmental impact assessment, namely:

• restrictions of activity - until fulfillment of all environmental conditions established in the resolution of the environmental impact assessment;

• temporary prohibition (termination) of activity – the enterprise, separate departments or pieces of equipment stop the operation until obtaining a resolution on environmental impact assessment or fulfillment of environmental conditions established in the resolution of the environmental impact assessment;

• termination of the activity - the operation of the enterprise or individual departments and pieces of equipment is terminated completely.

Currently, the Law is not signed by the President of Ukraine yet. 

 

This Law is also known as a "antiraider law", which aims to protect Ukrainian business from raider attacks. The problem of raider attacks is under active discussion in Ukraine recently.

The Law increases the criminal responsibility not only for the state registrar, but also for the initiator and executer of raider attacks.

The Law makes changes to some legal acts of Ukraine, in particular:

1) To the Law on state registration of real estate rights and their encumbrance:

- The owners of real estate property will get additional guarantees of protection. The Law provides the obligation for the state register to notify immediately the owner of real estate property about the appropriate registration actions.

- The term of appeal against decisions, actions or inaction of the state registrar was increased from 30 to 60 days;

2) To the Law on state registration of legal entities, private entrepreneurs and public prganizations:

- The principle of exterritoriality, that allowed to make changes to the statutory documents of a legal entity in any part of Ukraine, regardless of the company location was changed. Now, according to the Law, the state registration may be done only within the area of the Autonomous Republic of Crimea, Kyiv and Sevastopol or a separate region. This does not concern the case when documents  for registration are submitted in electronic form.

- Now, notary certification of signatures of chairman, secretary or members of General meeting of legal entity on the protocol and the founding documents (the Charter) when making changes to the statutory documents is required.

3) To the Law on electronic signatures:

- According to the new rules, electronic signatures will be given only in case of personal presence of a signer, in particular officials of legal entities (including directors, chief accountants).

Currently, the Law is not signed by the President of Ukraine yet.

 To see the full text of the Law, please follow the link:

http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=59923

 

The Government expanded the amount of information concerning registered vehicles and their owners that is available in the Unified State Register of the Ministry of Internal Affairs for officials of the government, local authorities, lawyers, notaries.

Now authorized requester has the opportunity to receive information about registration plates of motor vehicles that was not available before. 

Receiving information about the registration plates of motor vehicles will simplify the work of notaries and will improve the quality of documents inspection during the signing of contracts subjects of which are vehicles.

The Information about registration plates of motor vehicles will allow attorneys to expedite the procedure of processual documents preparation to ensure the action by arresting of property.

Taken from https://www.kmu.gov.ua/control/uk/cardnpd?docid=249418948