On 17 June 2018, the Law of Ukraine On Limited and Additional Liability Companies came into effect. Current provisions of a limited liability company (LLC) charter will remain effective until the earlier of 17 June 2019 or the date when any amendments to a charter are introduced by the participants. After such date, the provisions of the law will override the conflicting provisions of the LLC charter. The provision of the law on expulsion of participants in the case of a participant’s death or liquidation will become effective on 17 June 2019.
The law fundamentally changes the rules for LLCs in Ukraine. It provides participants with wide discretion in establishing the rules on LLC corporate governance and transfer of participatory interests.