18:13 25.05.2017

Rada fails to adopt law on limited liability companies

Rada fails to adopt law on limited liability companies

People's deputies on May 25 refused to adopt as a whole the bill on limited liability companies (No. 466), sending it to second reading.

According to an Interfax-Ukraine correspondent, 184 people's deputies voted for the adoption of the document with the quorum being 226 votes, after which it was sent for revision by 235 votes.

Before this, the Rada failed to confirm a number of amendments supported by the relevant committee on economic policy.

Its head Andriy Ivanchuk noted rejection of these amendments worsens the bill, but if accepted, it would still be a significant step in improving corporate legislation in Ukraine, in which the activities of limited liability companies are still regulated by only 14 articles of the law on business entities dated 1991.

The bill on limited liability companies was supposed to settle the most massive form of doing business in Ukraine, since there are about 500,000 limited liability companies compared to 16,000 joint-stock companies. The most expected changes incorporated in the document are the possibility of signing corporate contracts, converting debts into capital, and creating a supervisory board.

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