Draft Law of Ukraine

"On Amendment of the Law of Ukraine "On Restoring a Debtor's Solvency or Recognizing It Bankrupt"

The draft envisages determining an authorized person of shareholders with the right to deliberative vote, who will represent interests of all shareholders during the procedure for bankrupting the association.

Also the draft suggests setting forth that from the day of approving readjustment, authorities of all management bodies of the debtor – legal entity – shall be suspended, except for the right to hold general meetings of shareholders for approving the decision on electing an authorized person for representation of shareholders’ interests.

The readjustment manager shall send to the authorized person of shareholders readjustment plan or amicable agreement in case, when such readjustment plan or amicable agreement requires exchange of the debtor’s liabilities into shares (bonds, pais).

The draft aims at establishing legal guarantees for shareholders' participation in the process of fulfilling the case on bankruptcy of their association.