Rada to allow conversion of cash claims into charter capital

18:35, 11.05.2016 1 min read

The Verkhovna Rada at first reading has adopted draft law No. 2764 on ensuring the right to convert cash obligations of a company into contributions to its charter capital.

Some 227 deputies voted for the document.

The authors of the bill, including representatives of the Petro Poroshenko Bloc and Samopomich factions, propose making such decisions on including third parties in the composition of a company by a at a general meeting by a simple majority vote, although in the course of discussion there were proposals to increase the (votes) barrier and ensure the voluntary nature of such conversion.

It is expected that adoption of this law will help partially resolve the problem of creditor indebtedness, simplify the process of reorganization and raising investment. The authors of the bill refer to the successful example of Poland, where conversion of debts owed to creditors turned into contributions to charter capital became possible in 1993.