The risk of invalidity of the transaction is no longer hypothetical, it has already been confirmed by judicial practice
Almost a year had passed since the Law of Ukraine “On Limited Liability and Additional Liability Companies” became effective on June 17, 2018 (hereinafter – the Law on LLC).
Even before the Law on LLC was adopted, we have pointed out some significant risks to commercial activity, which were put into its text (please see “Key risks to commercial activity connected with the Law on Corporate Agreements and the Law on Limited Liability Companies”). One of such risks is the invalidation (recognition that no binding obligations exist for the company) of the agreement that meets the criteria of the “significant transaction”, exceeding 50 % of the net assets of the company by the end of the previous quarter, if concluded without consent of the company’s general meeting.
It should be noted ...
Full text is open only for the subscribers.
And again, about significant transactions: judicial practice
Legal paradoxes concerning charter capital of a limited liability company
Novelties of the Bankruptcy Procedures Code
Corporate Risks under the Law on Companies
New Law on Companies
How to cheat friends (i.e. creditors) and influence people (i.e. company, which is not belongs to you) – based upon the Draft Law “On Limited Liability Companies and Companies with Subsidiary Liability”