Legislative news digest: LEGAL HOTLINE 25.04.2019

The Code of Ukraine on Bankruptcy Procedures Took Effect. The Wait is Over
 

The Code of Ukraine on Bankruptcy Procedures adopted by the Verkhovna Rada back in October 2018 was awaiting for almost half a year until April 15, 2019 to be signed by the President of Ukraine. However, on April 21, 2019, the Code has taken effect, but, in accordance with the transitional provisions, it will be brought into force six months after the new Code took effect. The exceptions are the provisions on the e-commerce system and the authorization of electronic platforms, which are to be brought into force in three months.

The Code establishes the conditions and procedure for restoring solvency of a debtor – a legal entity or recognizing it as a bankrupt and applying a liquidation procedure with a view to fully or partially satisfy the claims of creditors, as well as to restore the solvency of a natural person (that is, a natural person’s bankruptcy institution is being introduced).

Legislative changes will allow individuals to declare their own bankruptcy and restore the conditions for solvency on loans.

In accordance with the Code, the debtor has the right to apply to the Economic Court with a statement to open proceedings in the insolvency case, if the amount of the debtor’s overdue obligations to the creditors is not less than 30 minimum wages.

Another requirement when applying to the court to declare bankruptcy is that the debtor has stopped to repay loans or make other scheduled payments in the amount, exceeding 50 percent of monthly payments for each loan and other obligations, within two months.
 

New Procedures for Operating Cash Registers
 

New procedures for maintaining the registry of samples for cash registers and the registry of cash registers service centers.

According to the changes, registration of cash registers will be carried out according to a simplified procedure, which includes, in particular:

• submission of one application in a simplified form, without appendices (it can be submitted electronically);
• introduction of electronic documents exchange between all subjects involved in the field of cash registers operation (cash register producer, cash register service center, economic entity, the State Fiscal Service) and interaction of information resources of the fiscal service.

Order of the Ministry of Finance of Ukraine No. 64 “On Approval of the Procedures for Maintaining the Registry of Samples for Cash Registers and the Registry of Cash Registers Service Centers”, dated February 13, 2019, comes into force on the day of its official publication on April 19, 2019.
 

The National Bank will Notify in Advance about Payment Systems Inspection
 

The National Bank of Ukraine has updated the procedure for conducting inspections regarding observance by the subjects of inspection (oversight) of the legislative requirements on payment systems operation in Ukraine.

From now on, the National Bank will notify the subjects of the scheduled on-site inspections not later than 20 days before the start of such inspection (earlier this term was 10 days), and will provide them with programs of such inspections.

The relevant norms are included in the Resolution of the Board of the National Bank of Ukraine No. 61 “On Amendments to the Regulations on the Procedure for Conducting Inspections on Observance (Oversight) of the Requirements of Ukrainian Legislation on Payment Systems Operation in Ukraine”, which enters into force on April 20, 2019.
 

New Procedure to Maintain the Electronic Register of Medical Disability Certificates
 

On April 17, 2019, the Cabinet of Ministers of Ukraine adopted the Resolution “Some Issues of Organizing the Electronic Register of Medical Disability Certificates and Providing Information Contained therein” No. 328.

The Register is maintained in order to ensure the accumulation, storage and use of information on issued, extended and registered disability certificates in order to exercise the rights of insured persons for the receipt of assistance due to temporary incapacity to work, pregnancy and childbirth, payment of the first five days of temporary disability at the expense of the employer, as well as to verify the validity of issuance and extension of disability certificates.

The Register is formed and maintained by the Pension Fund of Ukraine, which is the owner of the Register data. The information can be exchanged between the Ministry of Health, the National Health Service of Ukraine, the Pension Fund of Ukraine and the Social Insurance Fund.
 

The Law on Criminal Offenses Has Been Signed
 

The President of Ukraine signed the Law on criminal offenses on April 19, 2019.

239 deputies voted for the approval of the Law on November 22, 2018, as a whole.

The Law on criminal offenses will allow to investigate not grave offenses under a simplified procedure, which will significantly unload investigators. Prior to the adoption of this bill, only investigators conducted a pre-trial investigation of all statements and messages containing information on criminal offenses. After introducing the concept of a “criminal offense” and a simplified procedure for its investigation, investigators will be able to concentrate on solving grave offenses, or special grave offenses.

In addition, the adopted Law introduces a norm on operating a vehicle under alcohol or drug intoxication into the Criminal Code, making it a criminal offense, along with theft, fraud, illegal activities with narcotics without the purpose of drug dealing, disorderly and insulting behavior, etc.

Officials of the National Police Investigation units will conduct criminal investigations.

The investigation of criminal misdeed will be conducted in the form of interrogation under a simplified procedure, including reduced terms – no more than 72 hours from the moment the person is informed of suspicion or detained, or in other cases for the term up to 1 month.