Corporate Governance And Directors' Duties

Corporate entities

1. What are the main forms of corporate entity used in your jurisdiction?

Companies in Ukraine could be divided into two large groups:

• Corporations (tovarystva). A corporation is a modern corporate form represented mainly by limited liability companies (LLCs) and joint stock companies (JSCs). There are other types of corporations which are much less popular.

• Enterprises (pidpryemstva). An enterprise is a corporate form inherited from the Soviet past but still popular today. There is a distinction between state and municipal enterprises, on the one hand, and privately owned enterprises, on the other. Charter capital of the privately owned enterprises can be divided into shares and they can have more than one member. State (and municipal) enterprises can only be founded by the state (municipality) and they have a unitary charter capital (that is, one that cannot be divided into shares).