This draft law includes amendments to the Civil Code, as well as to the laws "On Economic Partnerships and Societies" and "On Bankruptcy (Insolvency)."
One of the most significant proposals is the introduction of subsidiary liability for founders and participants of LLCs. This means that if the company fails to meet its tax obligations, liability may also be imposed on its owners.
Additionally, the draft law proposes changes in the management of new companies. For the first two years after registration, the director of the LLC must be one of the founders. If the founder is a legal entity, then the leader must be a physical founder who is at the top of the corporate structure.
After the two-year period, appointing a leader who is not a founder will only be possible if the actual business activity of the company is confirmed.
The legislation on bankruptcy is also proposed to be tightened. In particular, mandatory disqualification for managers of companies recognized as bankrupt is introduced. The ban on conducting business activities or holding managerial positions will last from one to three years for the first bankruptcy and up to ten years for a repeat bankruptcy.
The explanatory note to the draft law states that the initiative is aimed at combating fictitious LLCs, the use of nominal managers, and tax evasion, as well as increasing transparency in the business environment.
