TRANSFORMATION OF ENTERPRISES INTO ORGANIZATIONAL AND LEGAL FORMS DEFINED BY THE CIVIL CODE OF UKRAINE

Abstract

The article provides an overview of the provisions of the Law of Ukraine “On the Peculiarities of Regulation of the Activities of Legal Entities of Certain Organizational and Legal Forms During the Transitional Period and Associations of Legal Entities” concerning the transformation of enterprises into organizational and legal forms defined by the Civil Code of Ukraine. It is noted that the principal legislative novelty in the regulation of legal entities is the abolition of the organizational and legal form known as an “enterprise.” This applies to all types of enterprises, including state, municipal, joint municipal, private, subsidiary, foreign enterprises, as well as enterprises established by associations of citizens (such as religious organizations or trade unions) and consumer cooperatives.As an alternative, it is proposed that state and municipal enterprises be transformed into joint stock companies or limited liability companies. The founder(s) of a private, subsidiary, foreign enterprise, or an enterprise established by an association of citizens or a consumer cooperative may independently choose the organizational and legal form of the legal entity that will act as the successor to such an enterprise, or they may decide to liquidate it.If no decision is made regarding the termination of a private, subsidiary, foreign enterprise, or an enterprise established by an association of citizens (religious organization, trade union), or a consumer cooperative enterprise, their activities after the end of the transitional period shall be regulated as the activities of limited liability companies.The unified property complex of a state enterprise shall be transferred to the management of the State Property Fund of Ukraine, which may decide to transform the enterprise into a joint stock company or a limited liability company, liquidate it, or initiate its privatization.