Pivdenmash, Komunar to become LLCs, not JSCs – Ukrainian govt
The Ukrainian government has declared unimplemented its September 2021 resolution providing for the reorganization of the state-owned A.M. Makarov Production Association Pivdenny Machine-Building Plant (Pivdenmash, Dnipro) and the state research and production enterprise Association Komunar (Kharkiv) into joint-stock companies (JSCs), opting instead to reorganize them into limited liability companies (LLCs).
The relevant Resolution No. 704, "On Approving the Reorganization of State Enterprises Managed by the State Space Agency," was adopted by the Cabinet of Ministers on July 15 and published on the government's official website.
Under the resolution, only the decision to reorganize Yuzhnoye Design Office named after M.K. Yangel (Dnipro) into a joint-stock company was reaffirmed. Meanwhile, the Arsenal Special Instrument-Making State Enterprise, Ukrkosmos (both based in Kyiv), and the Research Technological Institute of Instrument Engineering (Kharkiv) are also to be transformed into limited liability companies.
"It shall be established that the JSCs and LLCs created through the reorganization of state enterprises... are the legal successors to the property, rights, and obligations of those enterprises, including obligations to the state under borrowings raised with state guarantees," the document states.
As in the 2021 resolution, the state will retain 100% ownership of the shares in both the newly established LLCs and JSCs.