On November 11, the Verkhovna Rada adopted in second reading and as a whole a law introducing a simplified bankruptcy procedure for micro and small businesses. The new rules are expected to reduce entrepreneurs' costs for debt settlement and speed up consideration of insolvency cases.
This was reported by the Verkhovna Rada Committee on Economic Development.
Bill No.15024 provides for a separate bankruptcy mechanism adapted to the financial capabilities of small enterprises. It is meant to reduce bureaucratic burden and make the procedure more accessible for businesses that cannot afford lengthy and expensive court proceedings.
Amendments to the Code of Ukraine on Bankruptcy Procedures provide for the possibility of faster debt resolution. Entrepreneurs will be able to use a financial rehabilitation procedure to preserve a viable business or cease operations through a simplified bankruptcy procedure.
At the same time, the document contains safeguards against abuse. They are designed to prevent the use of the simplified mechanism by entrepreneurs who try to evade their financial obligations.
A separate part of the law concerns the application of bankruptcy procedures to state enterprises and business companies for which a privatization decision has already been made.
According to the parliamentary committee, the law is part of European integration reforms. Its provisions are based on the principles of EU Directive 2019/1023 and are related to fulfilling Ukraine's obligations under the Ukraine Facility program.
Let us remind you that on September 16, the parliament supported the bill in the first reading. After further work, the relevant committee on November 4 recommended its final adoption.
As of November 11, the document is being prepared for signature. Parliamentary adoption does not yet mean the new rules enter into force. For that, the law must undergo further procedures and be officially published.
Based on materials from: Verkhovna Rada Committee on Economic Development, bill card No.15024
