The Law on LLCs: red flags for top managers. GOLAW workshop results

New liability responsibility of top management of companies was the main topic of today’s workshop led by Max Lebedev, partner at GOLAW, head of corporate and M&A practice. Questions of responsibility of company directors according to the corporate legislation, as well as potential risks of non-compliance with the Law on LLCs were discussed during the event.

According to Max, court practice on the matters governed by the Law on LLCs is currently being formed, however first decisions on significant transactions that are declared invalid already appear.

In addition, Max explained why top managers shall pay attention to the new grounds of their dismissal. “Business owners have been provided with a number of new opportunities to dismiss a director without compensation. Most executives do not adhere to the new rules, and therefore are risking of being left without severance package”, the speaker mentioned.

The speaker also emphasized that company executives need to pay more attention while performing their corporate functions. “The CEO position is not only very important and responsible, but it also carries enormous risks for the position holder. Most of these issues can be completely avoided, the main precondition is to fulfill the requirements of the Law in time”, said Max.

We thank the American Chamber of Commerce in Ukraine for the joint organization of the event.

See you!