Farms will be obliged to transform into LLCs or cease operations

15/03/2023 10:44

The Verkhovna Rada of Ukraine is preparing for consideration a draft law that will oblige farms to transform into LLCs or cease operations. The chairman of the All-Ukrainian Congress of Farmers, Ivan Slobodyanyk, told about this, writes "Economichna Pravda".

Yes, we are talking about draft law No. 6013 "On the peculiarities of regulating the entrepreneurial activity of certain types of legal entities and their associations in the transition period".

"Article 20 of the draft law prohibits the creation of legal entities in the organizational and legal forms of a farm, and Article 22 obliges the owner of a farm to reorganize the enterprise within 5 years (merger with a business partnership, join a business partnership, transform into a business partnership) or liquidate it" , — explained Ivan Slobodianyk.

He added that such requirements are also established for the owners of the enterprise of the association of citizens (religious organization, trade union), communal enterprises and cooperatives.

"It would seem that the Law "On Farming" is not repealed, but the devil is in the details (in the legislative technique - in the transitional and final provisions). Clause 6 of the project specifies that until the legislation is brought into line with this law, normative legal acts shall be applied in the part that does not contradict it. The choice is small: liquidate or turn into an LLC," said the head of the All-Ukrainian Congress of Farmers.

He reminded that agricultural products in Ukraine are produced by more than 50,000 agricultural enterprises, 92% of which are farms. FG cultivates about 4.7 million hectares of land.

"It is noteworthy that, having announced plans to become part of the European Union, where the main producers of agricultural products are farms, we want to destroy farming as a species by one law. If this legislative initiative is a lobby of large agrarian holdings, then I demand an immediate stop to such actions during the war. If the legislator plans to improve the living conditions of farmers (which is not evident from the proposed draft law), then I call for dialogue and joint discussion of such norms," emphasized Ivan Slobodianyk.

The Verkhovna Rada of Ukraine is preparing for consideration a draft law that will oblige farms to transform into LLCs or cease operations. The chairman of the All-Ukrainian Congress of Farmers, Ivan Slobodyanyk, told about this, writes "Economichna Pravda".
Yes, we are talking about draft law No. 6013 "On the peculiarities of regulating the entrepreneurial activity of certain types of legal entities and their associations in the transition period".
"Article 20 of the draft law prohibits the creation of legal entities in the organizational and legal forms of a farm, and Article 22 obliges the owner of a farm to reorganize the enterprise within 5 years (merger with a business partnership, join a business partnership, transform into a business partnership) or liquidate it" , — explained Ivan Slobodianyk.
He added that such requirements are also established for the owners of the enterprise of the association of citizens (religious organization, trade union), communal enterprises and cooperatives.
"It would seem that the Law "On Farming" is not repealed, but the devil is in the details (in the legislative technique - in the transitional and final provisions). Clause 6 of the project specifies that until the legislation is brought into line with this law, normative legal acts shall be applied in the part that does not contradict it. The choice is small: liquidate or turn into an LLC," said the head of the All-Ukrainian Congress of Farmers.
He reminded that agricultural products in Ukraine are produced by more than 50,000 agricultural enterprises, 92% of which are farms. FG cultivates about 4.7 million hectares of land.
"It is noteworthy that, having announced plans to become part of the European Union, where the main producers of agricultural products are farms, we want to destroy farming as a species by one law. If this legislative initiative is a lobby of large agrarian holdings, then I demand an immediate stop to such actions during the war. If the legislator plans to improve the living conditions of farmers (which is not evident from the proposed draft law), then I call for dialogue and joint discussion of such norms," emphasized Ivan Slobodianyk.
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