Overview

Ukrainian law establishes specific requirements regarding the level of net assets companies should maintain.

A similar requirement is established in the new Joint Stock Company Law1 (the Law). In particular, if the net assets of a joint stock company (JSC) after the second financial year, and then for all subsequent financial years, are less in value than the registered share capital, the company must declare a decrease of its share capital (but no lower than the minimum established by law) and register the appropriate amendments to the charter.

If the value of net assets drops below the minimum share capital established by law, the company is obliged to take action within 10 months following its occurrence or liquidate.

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