Legal status of limited liability companies: innovations in the conditions of European integration

Abstract

The article analyzes the state of legal regulation of limited liability companies and the levers of influence which have made adjustments to the scope of activities of these legal entities. A limited liability company has the general characteristics of a legal entity, including civil legal capacity and legal capacity, organizational unity, property separation, independent property liability for its own obligations, and the ability to act on its own behalf in civil turnover, including the ability to be a plaintiff or defendant in court. However, the current legislation lacks regulation of the specifics of management in single-member companies.

In the area of Ukraine’s economic integration with the European Union, the Association Agreement enshrined important provisions relating to the activities of limited liability companies, which are reflected in the Laws of Ukraine “On Limited Liability Companies and Additional Liability Companies” and “On Stimulating the Development of the Digital Economy in Ukraine” through the gradual adaptation of Ukrainian legislation to the EU acquis. The OECD Corporate Governance Principles also reveal the peculiarities of strategic management, effective supervision of the management board’s activities by the supervisory board, and the responsibility of the management bodies to the company and its shareholders. These standards were also taken into account when drafting special laws, the provisions of which are aimed at improving governance in limited liability companies in relation to the activities of the company’s executive body and supervisory board, the duties and responsibilities of members of the company’s supervisory board and members of the company’s executive body, and the possibility of participation in the company’s bodies by an independent member of the supervisory board and a non-executive member of the collegial executive body.

At the same time, limited liability companies have become the most convenient form of doing business in the specialized IT industry, and therefore the digital platform of the State Enterprise Diia provides for the possibility of establishing such companies through an online procedure based on a model charter. Relations between co-founders, as well as between co-founders and employees, are also regulated through such contractual structures as a corporate agreement, a non-disclosure agreement (NDA), and a non-competition agreement (NCA). These practical mechanisms are in line with the standards of Directive 2017/1132 of the European Parliament and of the Council of 14 June 2017.

How to Cite

In accordance with DSTU 8302:2015:
Сіщук Л. Правовий статус товариств з обмеженою відповідальністю: новації в умовах євроінтеграції. Цивілістична платформа. 2024. № 3. С. 66-99. https://doi.org/10.69724/2786-8834-2024-3-3-66-97

According to the international style of APA:
Sishchuk, L. (2024) Legal status of limited liability companies: innovations in the conditions of European integration. С. P. Journal, 3. https://doi.org/10.69724/2786-8834-2024-3-3-66-97

References