Legal alerts


Three years ago, in June 2018, the Law of Ukraine “On Limited and Additional Liability Companies” (the “LLC Law”) became effective. It introduced a lot of novelties to ease doing business in Ukraine. This note aims to recap these novelties briefly. To read our full legal alert on the LLC Law, please follow this link.

The LLC Law permitted shareholders in limited liability companies (the “LLCs”): 

  • to establish supervisory boards
  • to increase charter capitals through contributions from third parties and debt-to-equity swaps
  • to create special procedures for material and related party transactions
  • to enter into shareholders’ agreements (the “SHA”)

Nowadays, LLC shareholders may use such well-known instruments as the right of first offer (ROFO), the right of first refusal (ROFR), tag along, drag along, deadlock resolution mechanisms, voting arrangements, option agreements, etc.

Today an increasing number of investors opt for the SHA to govern their internal relations and increase the company`s sustainability. We see high demand for the SHAs and prepared more than a dozen SHAs for our clients. The SHAs are widely used in all industries both by local and foreign investors. 

Ukrainian corporate legislation continues to improve. The managing partner of AVELLUM, Mykola Stetsenko, has been actively involved in drafting the new law on the Joint Stock Companies and further improvements to the LLC Law. These upcoming changes will clarify some existing inconsistencies in the LLC Law and will permit the shares in LLCs to be registered in the accounting system of the depositary system in Ukraine (as opposed to the public register of the companies) which is a very technologically advanced system that provides greater protection and many additional functions to the companies and shareholders; 

Undoubtedly, all of this fully affects the investment attractiveness of Ukraine.

Posted on June 18, 2021

AVELLUM advises Ministry of Finance of Ukraine on sovereign loan from Canada

AVELLUM acted as the Ukrainian legal counsel to the Ministry of Finance of Ukraine in connection with a CAD2 billion 10-year concessional loan from Canada. The funds were provided through the mechanism of the Administrated Account of the International Monetary Fund (IMF) and will be directed towards Ukraine’s priority social and economic needs. The loan […]

Posted on April 15, 2024

AVELLUM is top-ranked by Legal 500 – 2024

AVELLUM earned 12 practice rankings, and all 10 of our partners received individual recognitions in the 2024 edition of The Legal 500. The Legal 500 lists AVELLUM as a top-tier firm in 12 practices. Tier 1: Banking, finance and capital markets, Commercial, Corporate/M&A, Competition, Dispute resolution, Employment, Private Client, Real estate and construction, and Tax. […]

Posted on April 10, 2024
Subscribe to our Newsletter
Search results: