Ukrainian law

Legal news in Ukraine: Bankruptcy Code is in force, amendments to regulations of Verkhovna Rada, assistant judges will submit e-declarations, Council of Europe will consider Ukrainian judicial reform, decentralization from president

26.10.2019 / 15:15
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 Legal news in Ukraine: Bankruptcy Code is in force, amendments to regulations of Verkhovna Rada, assistant judges will submit e-declarations, Council of Europe will consider Ukrainian judicial reform, decentralization from president

Bankruptcy Code of Ukraine entered into force

On October 21, 2019, the Ukrainian Code of Bankruptcy Procedures entered into force, which entered into force on April 21, 2019.

The Bankruptcy Code of Ukraine is the first comprehensive document since Ukraine's independence that governs all procedural issues of bankruptcy.

From the date of its entry into force, the Law of Ukraine «On Restoring the Solvency of a Debtor or Declaring it Bankrupt» becomes null and void.

The Code facilitates the opening of bankruptcy proceedings, all property disputes involving the debtor are concentrated in the bankruptcy case, the seizure of the debtor’s property is possible only in the framework of the bankruptcy case, the debtor’s assets are released from the tax lien and the seizure of property is canceled by a court ruling on the case of bankruptcy; a single self-regulatory organization of arbitration managers is created and the like.

In addition, the Code regulates a fundamentally new procedure for Ukraine to restore the solvency of individuals.

The basic principles of this procedure are quite loyal to the bankrupt: the opening of the procedure solely on the initiative of the debtor, the ability to satisfy the requirements of creditors by restructuring and/or paying off debts by selling all the property of the debtor, the inviolability of the home, the impossibility of a repeated bankruptcy procedure.

The Bankruptcy Code consists of four books: «General Part», «Arbitration Manage», «Bankruptcy of Legal Entities», «Restoring the Solvency of an Individual».

The amendments to the regulations of the Verkhovna Rada of Ukraine entered into force

On October 23, 2019, the Law of Ukraine «On Amending the Rules of Procedure of the Verkhovna Rada of Ukraine on Planning and Systematic Lawmaking Activities of the Verkhovna Rada of Ukraine» entered into force.

The law introduced the planning of bill work. On the proposal of the Chairman of the Verkhovna Rada of Ukraine, taking into account the proposals of the parliamentary committees, people's deputies approve the plan of the legislative Assembly.

It will include a list of issues requiring legislative settlement; indicative dates and persons responsible for the development of the bill, as well as information on the priority of introducing and considering the bill.

The plan of legislative work should be taken into account during the formation and amendment of the agenda of the session of the Verkhovna Rada of Ukraine.

Assistant judges will submit e-declarations from 2020

Changes in anti-corruption legislation expand the range of electronic declaration’s subjects, according to the National Agency for the Prevention of Corruption.

It should be noted, on October 18, 2019 the Law of Ukraine «On Amending Certain Legislative Acts of Ukraine Regarding Ensuring the Effectiveness of the Institutional Mechanism for the Prevention of Corruption» entered into force.

At the same time, amendments to Articles 46, 52 of the Law of Ukraine «On the Prevention of Corruption» on the new e-declaration rules will come into force on January 1, 2020.

From this date on, an electronic declaration must be submitted by the head of the Office of the President of Ukraine, his deputies, assistant judges, as well as persons holding patronage services as defined by the Law of Ukraine «On Public Service», except for persons performing their duties on a voluntary basis.

In addition, the children of the declarant entity become members of the declarant's family until they reach adulthood, regardless of the combination of such features as cohabitation, connectedness of common life, and the presence of mutual rights and obligations.

Amendments to the anti-corruption legislation also provide that the form of government of the National Agency for the Prevention of Corruption changes from collegial to sole. National Agency’s Chairman will be appointed by the Cabinet of Ministers of Ukraine in accordance with the proposal of the competitive commission based on the results of the competition.

Ukrainian judicial reform will be analyzed in the Council of Europe

Now the Verkhovna Rada has registered 2 decisions on canceling the decision of the Verkhovna Rada of Ukraine of October 16, 2019 on the adoption of the Law of Ukraine «On Amending Certain Laws of Ukraine Regarding the Activities of Judicial Administration» (Bill No. 1008).

As the Ukrainian National Bar Association (UNBA) noted, these decisions may block the signing of the law on restarting judicial reform for at least some time.

UNBA adds that there are enough arguments to cancel the bill. Conceptually, it does not comply with the law of the European Union and the recommendations of the Council of Europe, and also does not take into account the basic principles of the independence of the judiciary and public administration such as democracy, the rule of law, respect for human rights and fundamental freedoms.

The bill No. 1008 has been sent to the Venice Commission by decision of the Monitoring Committee of the Parliamentary Assembly of the Council of Europe.

In addition, the Committee of Ministers of the Council of Europe (CMСE) will consider the issue of Ukrainian judicial reform in December 2019.

The representative of the Council of Europe Court of Human Rights Department of Enforcement of Decisions, Pavloo Pushkar, noted that it is important for the CMCE to analyze the actual situation that has developed in the country’s judicial system at the exact moment when the Committee is fulfilling its duty to oversee the implementation of the judgments of the ECHR.

The Verkhovna Rada will consider the reform of local self-government at this session

First Deputy Head of the Office of the President of Ukraine Serhii Trofimov presented the vision of President Volodymyr Zelenskyi regarding changes to the Constitution of Ukraine on the reform of local self-government.

Trofimov stressed that the reform of local self-government and its consolidation in the Constitution will allow people all over the country to have an opportunity to improve their well-being. «This means that public services need to become closer and that medicine and education are better and more accessible», he explained.

He noted that these constitutional changes will be the completion of decentralization in Ukraine.

In addition, this reform will ensure the full implementation of the European Charter of Local Self-Government.

The draft amendments to the Basic Law are still being processed by the Legal Affairs Commission under the President of Ukraine.

Among the main ideas: the introduction of a three-level system of administrative-territorial structure (community-district-region), the construction of local self-government on the basis of the principles of omnipresence and financial self-sufficiency.

Along with these changes, draft laws regarding decentralization are being developed.

It is expected that the draft constitutional amendments will be forwarded to the Constitutional Court of Ukraine already at the current session of the Verkhovna Rada.

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