Publication date: 08.06.2024
Problems and prospects of reorganization and liquidation of enterprises
Introduction
The processes of reorganization and liquidation of enterprises are an integral part of economic life. In Ukraine, these procedures are regulated by a set of legislative acts that define the procedure, rights and obligations of the participants in the process. In this article, we will consider the main problems faced by companies in the course of reorganization and liquidation, as well as the prospects for improving these processes.
Legal framework
The Civil Code of Ukraine:
- Regulates general issues related to the liquidation and reorganization of legal entities, including the procedure for carrying out these procedures.
Commercial Code of Ukraine:
- Contains special provisions on reorganization and liquidation of business entities.
The Law of Ukraine "On Restoring Debtor's Solvency or Declaring a Debtor Bankrupt":
- Defines bankruptcy procedures that may result in reorganization or liquidation of the debtor.
The Tax Code of Ukraine:
- Regulates tax aspects related to the reorganization and liquidation of enterprises.
Problems of reorganization and liquidation of enterprises
Bureaucratic obstacles:
- Reorganization and liquidation procedures are often complicated and time-consuming due to the large number of bureaucratic procedures that need to be completed.
Litigation:
- Conflicts often arise between creditors and debtors, which can delay the reorganization or liquidation procedure indefinitely due to litigation.
Lack of transparency:
- Insufficient transparency of the processes can lead to abuse by company executives or liquidators, making it difficult to protect the rights of creditors and other stakeholders.
You may be interested in the following articles: lawyer consultation, lawyer consultation, analysis of written advice, verification of documents by a lawyer, lawyers documents help legal opinion, legal opinion of a lawyer, lawyer online consultation, lawyer consultation, lawyer assistance online
Financial expenses:
- Reorganization and liquidation procedures can be financially costly, which creates additional difficulties for businesses that are already in a difficult financial situation.
Imperfect legislation:
- The current legislation does not always take into account all possible scenarios and nuances, which can lead to legal conflicts and complications in the practical implementation of procedures.
Prospects for improvement
Simplification of procedures:
- Improve legislation to simplify reorganization and liquidation procedures, reduce bureaucratic barriers and shorten the timeframe for these processes.
Increase transparency:
- Implementation of mechanisms to ensure transparency of procedures, including mandatory public information on all stages of reorganization and liquidation.
Effective judicial proceedings:
- Improving the efficiency of the judicial system, in particular in terms of prompt and fair consideration of disputes related to the reorganization and liquidation of enterprises.
Professional development of liquidators:
- Introduce mandatory qualification requirements and training for persons involved in the liquidation of enterprises to improve their professional competence.
Protection of creditors' rights:
- Improving mechanisms for protecting creditors' rights, including ensuring their participation in reorganization and liquidation processes, as well as guaranteeing fair distribution of property.
