News (#9-10 September-October 2021)


Thousands of companies to be obliged to pay insurance on environmental damage

The Cabinet of Ministers proposes to introduce compulsory environmental insurance for 14,000 companies from a high-risk group of environmental violations. If the Verkhovna Rada adopts the relevant law, these companies will pay insurance for damage they have caused.

Under the project, it is proposed to introduce compulsory civil liability insurance for damage caused by environmental legislation violations. Payments will be made in the event of damage to the state, as well as to the property, health, or life of third parties.

Insurance contracts will be subject to mandatory registration in the Unified State Register of Environmental Insurance Contracts. Only 14,000 high-risk companies will be obliged to get insurance, while the other entities can conclude such contracts voluntarily.

Moreover, the Environmental Insurance Bureau will be established. It is a non-profit association of insurers, which will be maintained at their expense.

It is noted that last year only 4% of the total sum of environmental damage accrued by the State Environmental Inspectorate was collected from violators.

Draft registered in Parliament on abolition of Economic Code of Ukraine

A Draft Law has been registered with the Verkhovna Rada to abolish the Economic Code of Ukraine. The draft in question is the Draft On the Peculiarities of the Regulation of Business Activities of Certain Types of Legal Entities and their Associations During the Transition Period (reg. No. 6013).

For legal entities the following is set out:

Ч introduction of a transition period of 7 years for the gradual transformation of УenterprisesФ into traditional forms of business entities;

Ч a mechanism not requiring significant efforts to implement the lawТs provisions.

At the same time, the abolition of the Commercial Code of Ukraine:

Ч will not result in the abolition of special legislation in the field of business activities, it will be enhanced;

Ч will not mean the liquidation of the commercial courts system;

Ч will not affect the chairs of economic (business) law at legal departments.

Parliament adopted law in first reading guaranteeing rights to real estate under construction

The Verkhovna Rada adopted Draft Law No. 5091 On Guaranteeing Property Rights to Real Estate to be Constructed in the Future in its first reading.

It is noted that it is intended to create legal mechanisms for the state guarantee of real rights to unfinished construction and future real estate, and the right to perform construction works is obtained from the date that the law comes into force.

The document, in particular, proposes:

Ч to set conditions when objects of unfinished construction, future real estate can be objects of civil rights;

Ч to determine the characteristic features of investment and financing of real estate constructed with the use of non-state funds;

Ч to determine the characteristic features of the contract on organization and financing of real estate construction;

Ч to determine the main requirements for the disclosure by the construction customer (construction developer, manager of the construction financing fund) of information about the partible object of unfinished construction (apartment building);

Ч to introduce a mechanism for state registration of ownership of unfinished construction and future real estate;

Ч to create an opportunity to obtain the right to perform construction works and state registration of ownership of the construction object and its components (apartments, parking spaces, other residential and non-residential premises, parking lots, etc.), which after the commissioning of the object are independent real estate) under the Уsingle windowФ principle.

It is also proposed to introduce a guaranteed share on real estate construction Ч a set of future real estate in one partible object of unfinished construction (in each construction stage/each start-up facility), proprietary rights to which are encumbered to guarantee the completion of the unfinished construction in the event of the construction customerТs/construction developerТs financial insolvency.

Moreover, it is proposed to establish a list of persons with the preemptive right of alienation, transfer to trust ownership as a way of ensuring the fulfillment of obligations related to unfinished construction and future real estate.

And to also determine the features of notarization of transactions related to unfinished construction and future real estate.

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