The High Commercial Court has changed its 2007 recommendations guiding the practice of lower commercial courts towards corporate disputes.
The changes provide clarification of some important issues, including that:
- dealings about the transfer of shares do not relate to the company's activities and therefore can be subject to a foreign law
- provisions applying a foreign law to govern matters of corporate governance are void (they are governed by Ukrainian law under Article 25 of the Law "On Private International Law")
- shareholders may enter into agreements about corporate governance matters where expressly allowed by Ukrainian law but their agreements cannot restrict the rights of other shareholders and cannot modify either the law or the company's statutes
Law: High Commercial Court of Ukraine, Recommendations "On Practice of Application of the Legislation in Disputes Arising out of Corporate Relations" # 04-5/14 dated 28 December 2007 amended on 18 June 2009.
Law-Now 9 April 2008 Ukraine: ban on foreign law and arbitration clauses in shareholder agreements
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The original publication date for this article was 07/07/2009.