Reorganization and Bankruptcy in Ukraine: The Issue of Legal Transplants

  • Oleksandr R. KOVALYSHYN Department of Legal Support of Market Economy Academician F.H. Burchak Scientific and Research Institute of Private Law and Entrepreneurship, National Academy of Legal Sciences of Ukraine, Kyiv, Ukraine
  • Oleh A. VIVCHARENKO Vasyl Stefanyk Precarpathian National University, Ivano-Frankivsk, Ukraine
  • Khrystyna Z. PITSYK Department of Civil Law and Civil Procedure, King Danylo University, Ivano-Frankivsk, Ukraine

Abstract

The process of integration of Ukraine into the international economic and political space cannot be effective without the implementation of relevant legal norms in various fields of law, in particular the European Union right to the Ukrainian system of law in the framework of the announced course on European integration. One of the key areas of implementation is the legal regulation of the reorganization and bankruptcy of economic entities, as large share in the world market are multinationals and joint venture companies from different countries. The purpose of the article is to determine the degree of implementation of certain rules of legislation on the reorganization and bankruptcy of foreign entities. A comparative study was chosen as the leading approach, which allowed to compare the domestic legislative base on regulation of the procedures of reorganization and bankruptcy of economic entities with the legal framework of foreign countries with different legal systems and integration associations, in particular, the CIS and the EU. The results show that reorganization and bankruptcy procedures have a considerable inflow of legal borrowing and have both structural and substantive elements of implementation. As the main vectors, the analysis gives grounds to determine the predominance of legal transplants in EU and US law against the background of the diminishing role of the CIS Model Laws. The identified shortcomings and gaps in the domestic legal field need further investigation in this area.


 

References

[1] Abramov, R.A., and Sokolov, M.S. 2016. Theoretical and methodological aspects of the formation of anti-corruption mechanisms in the system of higher education of the Russian Federation. International Journal of Environmental and Science Education 11(15): 7431-7440.
[2] Alan, W. 1974. Legal Transplants: An Approach to Comparative Law. University of Georgia Press.
[3] Alan, W. 1976. Legal transplants and law reform. Law Quarterly Review 92(1): 79-84.
[4] Amended proposal for a Thirteenth Council Directive on company law concerning takeover and other general bids. 1990. Official Journal of the European Communities 240: 7-30.
[5] Association Agreement between Ukraine, of the one part, and the European Union, the European Atomic Energy Community and their Member States, of the other part, dated 21.03.2014. Ratified by the Law of Ukraine of 16 September 2014, No.1678- VII. 2014. https://zakon3.rada.gov.ua/laws/show/984_011.
[6] Bankruptcy Code of Ukraine, No. 2597-VIII, October 18, 2018. 2019. https://zakon.rada.gov.ua/laws/show/2597-19.
[7] Biryukov, A. 2007. Ukrainian bankruptcy law in the context of regional and international developments. Annual Survey of International & Comparative Law 13(1): 13-33.
[8] Company Law: A Comparative Legal Compliance Study of the European Union Acquis Communautaire. 2009. Ministry of Justice of Ukraine State Department for Legal Approximation. http://just.odessa.gov.ua/files/upload/files/17.pdf.
[9] Council Regulation (EC) No 1346/2000 on insolvency proceedings. 2000. Official Journal of the European Union. L 160. https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2000:160:0001:0018:en:PDF.
[10] Dai, J. 2009. On several problems in legal transplantation. Journal of Politics and Law 2(3): 107-109.
[11] European Convention on Certain International Aspects of Bankruptcy ETS N 136 Istanbul, June 5, 1990. 1990. https://zakon.rada.gov.ua/laws/show/994_540.
[12] Explanatory note dated 26/02/2018 to the Bankruptcy Code of Ukraine. 2018. http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=63518.
[13] Fiala, T., and Bondaryev, T. 2008. Mergers &Acquisit. Arzinger&Partners.
[14] Garagonich, O.V. 2014. Topical issues of adaptation of Ukrainian corporate law to European Union law. Visegrad Journal on Human Rights 1: 36-42.
[15] Goloshchapova, L.V. et al. 2017. Theoretical and methodological basis of organization of the internal control system of the industrial enterprise. International Journal of Applied Business and Economic Research 15(12): 261-271.
[16] Gorian, E.V., and Korolchuk, S.V. 2012. Insolvency law in Ukraine and the USA: Comparative Legal Analysis. Journal of the Academy of the Bar of Ukraine 17(4'2012): 1-7.
[17] Kibenko, O.R. 2006. The current state and prospects of legal regulation of corporate relations: a comparative legal analysis of EU, UK and Ukraine law. PhD diss., Yaroslav Mudryi National Law Academy of Ukraine.
[18] Kostruba, A.V. 2017. Methodological basis of legal personality of the state (civil aspects). Journal of Legal, Ethical and Regulatory Issues 20(Special issue 1): 1544-0044-20-SI-1-110.
[19] Kostruba, A.V. 2018. Right deprivation in the legal regulation mechanism of civil property relations. Journal of Legal, Ethical and Regulatory Issues 21(Special Issue 1): 1544-0044-21-S1-252.
[20] Kozlovska, D. 2018. The attempt to systematise and summarise bankruptcy rules in the form of a code is revolutionary. Bankruptcy and Liquidation. https://bankruptcy-ua.com/articles/8842.
[21] Krasnitsky, V.O. 2014. The use of foreign language vocabulary in the legislation of Ukraine. Paper presented at the 10th All-Ukrainian scientific-practical conference ‘Ukrainian language in jurisprudence: state, problems, prospects’. 28November, in Kyiv, Ukraine.
[22] Kulakov, V. 2019. Separate issues of reorganization of Limited Liability Company. Entrepreneurship, Economy and Law 7: 5-9.
[23] Lazarenko, M. 2018. Why debtors will stop fearing bankruptcy. Financial Club. https://finclub.net/ua/priama-mova/chomu-borzhnyky-perestanut-boiatysia-bankrutstva.html.
[24] List of signatures and ratifications of the 1990 European Convention on Certain International Aspects of Bankruptcy (ETS N 136) (Istanbul, 5 June 1990). 1990. https://zakon.rada.gov.ua/laws/show/994_557.
[25] Model Bankruptcy Law (Bankruptcy): Adopted by Decree No. 10-15 of December 6, 1997. 1997. https://zakon.rada.gov.ua/laws/show/en/997_995?lang=en.
[26] O'Neill, M. 2000. When European integration meets corporate harmonisation. Company Lawyer 21(6). https://rke.abertay.ac.uk/en/publications/when-european-integration-meets-corporate-harmonisation.
[27] Ostapiuk, N., Karmaza, O., Kurylo, M., and Timchenko, G. 2017. Economic security in investment projects management: Convergence of accounting mechanisms. Investment Management and Financial Innovations 14(3): 353-360.
[28] Prodanova, N.A. et al. 2017. Formation of system of internal control and features its functioning in the innovative development of industrial enterprises. International Journal of Applied Business and Economic Research 15(13): 179-189.
[29] Prodanova, N.A. et al. 2019. Methodology for assessing control in the formation of financial statements of a consolidated business. International Journal of Recent Technology and Engineering 8(1): 2696-2702.
[30] Rodolfo, S. 1974. Les buts et les methodes de la comparaison du droit. Rapports nationaux italiens au IX Congres international de droit compare, 27 September-4 October, in Teheran, Iran.
[31] Rudenko, M.N. 2019. Institutional arrangements for the realization of regional entrepreneurial potential. Public Policy and Administration 18(2): 209-224.
[32] Samoilenko, V. 2005. Some legal aspects of mergers and acquisitions in Ukraine. Legal Advisor 4(6): 29-34.
[33] Savetchuk, V.M. 2018. Legal regulation of merger and acquisition of legal entities under the law of Ukraine and the European Union. PhD diss., Vasyl Stefanyk Precarpathian National University.
[34] Strelchuk, V., and Ivanyuk, N. 2016. Improvement of legislation in the sphere of termination of activity of an economic entity that is not related to its bankruptcy. Economic Law and Process 5: 31-36.
[35] Tacij, V.J., Tjutjugin, V.I., and Grodeckij, J.V. 2014. Conceptual model establish responsibility for offense in the legislation of Ukraine (draft). Criminology Journal of Baikal National University of Economics and Law 3: 166-183.
[36] Tereshchenko, E.Y. et al. 2017. Methodological basis of business value estimation. International Journal of Applied Business and Economic Research 15(11), 11-18.
[37] Toleubai, A.M., and Kizdarbekova, A.S. 2018. The concept of commercial legal entities in Kazakhstan and foreign legislation. Journal of Advanced Research in Law and Economics 9(7): 2437-2446.
[38] Twining, W. 2004. Diffusion of law: a global perspective. The Journal of Legal Pluralism and Unofficial Law 36(49): 1-45. DOI:10.1080/07329113.2004.10756300.
[39] UNCITRAL Model Law on Transboundary Insolvency. 1997. https://zakon.rada.gov.ua/laws/main/995_877
[40] Zubatenko, O.M. 2009. On borrowing foreign experience of legal regulation of termination of economic entities. Forum of Law 2: 185-191.
Published
2019-09-30
How to Cite
KOVALYSHYN, Oleksandr R.; VIVCHARENKO, Oleh A.; PITSYK, Khrystyna Z.. Reorganization and Bankruptcy in Ukraine: The Issue of Legal Transplants. Journal of Advanced Research in Law and Economics, [S.l.], v. 10, n. 5, p. 1485-1492, sep. 2019. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/4834>. Date accessed: 25 feb. 2024.