Ukraine: the President signed the law on joint stock companies

The President has finally signed the long-awaited and far-reaching Law on Joint Stock Companies. This Law passed by the Parliament on September 17, 2007 will become effective 6 months after it is officially published. We expect that starting late April or early May all public and private companies will be created pursuant to the new Law on Joint Stock Companies.

As was already mentioned in our previous article there is a 2-year deadline for all existing joint stock companies (both public and private) to meet the requirements of the new Joint Stock Companies Law. In addition, should the existing private or public company change its charter capital, denominate shares or issue securities after the new law becomes effective, the duty to comply with the new law will be triggered right away, before the expiration of the 2-year deadline.

There is also an expectation that specific changes will be made to the new Joint Stock Companies law with a view to eliminate some discrepancies and gaps.