NDU will maintain a public register of shares in LLCs and ALCs

Today, on June 23, 2023, Maksym Libanov, the Commissioner (National Securities and Stock Market Commission), took part in a roundtable discussion on «Joint Stock Companies and Limited Liability Companies: New Opportunities and Challenges» organized by the National Depository of Ukraine (NDU).

The participants of the event discussed the innovations of the Law on Joint Stock Companies: accounting of company shares in the NDU, holding general meetings through the electronic system of the NDU, as well as modern depository activities in Ukraine.

Among other things, Maksym Libanov spoke about the challenges of the current legislation for JSCs and the Resolutions made by the NSSMC in this area, and noted: «On the basis of the NDU, we offer new technological opportunities for companies. First of all, this will strengthen the protection of property rights of company shareholders and make it impossible to unauthorized re-registration of ownership rights to shares in LLCs and АLCs using the services of unscrupulous notaries and state registrars».

This innovation will also provide access for those LLCs/ALCs that choose NDU as the place of accounting for their shares. This means access to new services offered by the NDU, namely: holding meetings of shareholders, payment of dividends, resources for effective communication of all company participants. Accounting for shares in NDUs is a voluntary right, not an obligation. It is also possible to switch back from the share accounting system to the USR.

As a reminder, on May 17, 2023, the Cabinet of Ministers approved the procedures:
– maintaining the accounting system of shares of LLCs (limited liability companies) and ALCs (additional liability companies),
– holding general meetings of shareholders using electronic communications through the share accounting system.

The documents will come into force on the date of their official publication on the regulator’s website and will be put into effect on January 1, 2024. The NDU, for its part, has already developed an internal regulation and is preparing to carry out such activities from the beginning of next year.