Important Changes In Formalizing Relations With Directors In Ukraine

On August 14, 2021, new rules on relations with directors of limited and additional liability companies ("LLCs" and "ALCs") came into force in Ukraine, introduced by the Law of Ukraine "On Stimulating the Development of Digital Economy in Ukraine" (better known as the "Diya City Law").

Among other novelties. Diya City Law introduced changes to paragraph 12 Article 39 of the Law of Ukraine "On Limited and Additional Liability Companies" allowing optional conclusion of:

• labour agreements;
• labour contracts as a special form of the labour agreement envisaging additional grounds for its termination;
• civil law agreement;

with the chairman and all members of the executive body of the ALCs and LLCs.