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’s year of invincibility

It’s been a tremendously important and obviously the most critical year for our country after 24 February 2022, when russia started its unprovoked and unjustified military aggression against Ukraine. Although the russian invasion made our activities quite challenging, we are fully operational and looking forward to restoring our business and the Ukrainian economy. Despite the […]

Posted on March 24, 2023

AVELLUM successful for the client before the High Anticorruption Court

AVELLUM defended the client, a Member of Parliament of Ukraine of the 9th convocation, being also a Lieutenant General of Ukrainian Armed Forces, in the criminal case heard by the High Anticorruption Court

Posted on March 15, 2023
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