Welcome to the U.S.-Ukraine Business Council


Marks, Sokolov & Burd, Philadelphia, PA
Monday, September 29, 2008

WASHINGTON, D.C. - In a private conversation today President Yushchenko confirmed that he will sign the Joint Stock Companies Law. President Yushchenko was in Washington with the official visit to meet with President Bush. 

In the morning President Yushchenko attended a breakfast organized by the U.S. -Ukraine Business Council (USUBC) after which Gene Burd, managing partner of the firm's Kyiv's office discussed with him situation with the new Joint Stock Companies Law. 

The President confirmed to Mr. Burd that he will sign the law, which will apparently take place after the President’s return to Kyiv tomorrow.  The deadline for the President to sign the law is October 2.

The new law has been approved by the Supreme Rada amid political reshuffling on September 17 by over 80% vote.  Comparing to the old 1991 law, the new one provides significantly more detailed framework for organization, management and dissolution of the companies including clarifications of provisions governing Supervisory Boards, Auditing Committees, exclusive competence and procedures governing shareholders meetings, and simplification of procedures for companies with a sole shareholder.

While the existing law may not be a panacea for issues facing foreign companies in Ukraine, it clearly moves Ukraine closer to the European legal standards, improving the overall investment climate. 

According to USUBC President Morgan Williams, "It is hard to overestimate the relevance and importance of this piece of legislation for the improvement of the investment climate and the general economic situation in Ukraine.  Adoption of this law is a significant step forward in bringing Ukraine to world standards in the sphere of corporate governance and ownership issues."

For the text of the law "On Joint Stock Companies" click on http://www.marks-sokolov.com/documents/Joint_Stock_Company_Law.pdf.

Marks, Sokolov & Burd is an international law firm with offices in Philadelphia, Pennsylvania, Moscow, Russia, and Kyiv, Ukraine.  The firm is known for its substantial experience in handling matters for Western clients doing business in Russia and Ukraine and Russian/Ukrainian clients doing business internationally.

For more information about the firm, visit firm’s web site at www.marks-sokolov.com. For more information about firm’s Ukrainian practice, please contact Gene M. Burd, managing director of the Kiev office at email: gburd@mslegal.com tel. +1 215 569 8901 (US) or +380 (44) 235-68-66 ( Ukraine ).