Division and spin-off as legal forms of disaggregation of economic organizations

Authors

DOI:

https://doi.org/10.15587/2523-4153.2024.313931

Keywords:

reorganisation, economic organisation, joint-stock company, limited liability company, division, spin-off, universal succession, distribution balance, division by acquisition, spin-off by acquisition

Abstract

The article highlights the issues of division and spin-off as legal forms of disaggregation of economic organisations, provides legal regulation of these forms in Ukraine, the EU, foreign countries (Germany, Poland) and the relevant analysis of court practice.

The author identifies the general (common) features of division and spin-off of economic organisations according to the following criteria: subject composition, purpose, legal form of disaggregation, basis for legal relations; documentation of property transfer, rights and obligations; universal legal succession; and subsidiary liability. The author distinguishes special (distinctive) features of division and spin-off of economic entities according to the following criteria: legal result; legal consequences; and the moment of procedure completion.

It is substantiated that it is advisable to regulate the basic concepts and essential characteristics of disaggregation of economic organisations by means of division and spin-off in the Commercial Code of Ukraine or, in the future, in the Economic Code of Ukraine. In this regard, the author provides the wording of the relevant definitions of division and spin-off, which is proposed to be enshrined in parts 4 and 5 of Article 59¹ ‘Termination of an Economic Organization by Reorganisation’.

It is found that the analysis of court practice regarding the essence of reorganisation in the form of spin-off shows a difference in approaches, which are fundamentally opposite in nature, when: (1) spin-off is not recognised as a type of termination or reorganisation of a legal entity; (2) spin-off is defined as a form of reorganisation of a legal entity. The author proves that such ambiguity of court practice affects the consideration of a case on the merits, in particular, when changing the subject composition in land lease agreements in the event of a lessee's reorganisation by way of spin-off.

The author proposes, taking into account the legislation of foreign countries (Germany and Poland) and EU law, to introduce the following legal forms and constructions into the current legislation of Ukraine: (1) ‘division by acquisition’ (simultaneous use of the forms of division and accession), (2) ‘spin-off by acquisition’ (simultaneous use of the forms of spin-off and accession); (3) ‘separation’ (for JSC, LLC, ALC) - by the formation of a new company and by acquisition.

Author Biography

Nataliia Shcherbakova, Vasyl’ Stus Donetsk National University

Doctor of Legal Sciences, Associate Professor

Department of Civil Law and Civil Process

References

  1. Uhoda pro asotsiatsiiu mizh Ukrainoiu, z odniiei storony, ta Yevropeiskym Soiuzom, Yevropeiskym spivtovarystvom z atomnoi enerhii i yikhnimy derzhavamy-chlenamy, z inshoi storony (2014). Zakon Ukrainy No. 1678-VII. 16.09.2014. Available at: https://zakon.rada.gov.ua/laws/show/984_011#Text Last accessed: 12.09.2024
  2. Dyrektyva YeS No. 2017/1132 shchodo deiakykh aspektiv korporatyvnoho prava (kodyfikatsiia) vid 14 chervnia 2017 r. Available at: https://zakon.rada.gov.ua/laws/show/984_014-17#n699 Last accessed: 12.09.2024
  3. Kucherenko, I. M. (2004). Orhanizatsiino-pravovi formy yurydychnykh osib pryvatnoho prava. Kyiv: In-t derzhavy i prava im. V. M. Koretskoho NAN Ukrainy, 328.
  4. Vasylieva, V. A., Luts, V. V., Sishchuk, L. V. et al.; Vasylieva V. A. (Ed.) (2018). Korporatyvne pravo Ukrainy: problemy teorii ta praktyky. Kharkiv: Pravo, 616.
  5. Stratiuk O. M. (2020). Concepts And Types Of Legal Succession In Reorganization Of Legal Entities. Aktualni problemy vdoskonalennia chynnoho zakonodavstva Ukrainy, 52, 121−133.
  6. Zhornokui, V. H. (2022). Essence of a legal entity’s reorganization from the standpoint of recognizing hive-out as one of its types. Bulletin of Kharkiv National University of Internal Affairs, 97 (2), 48–58. https://doi.org/10.32631/v.2022.2.04
  7. Shcherbakova, N. V. (2024). Pravove zabezpechennia reorhanizatsii hospodarskykh orhanizatsii. Vinnytsia: DonNU im. Vasylia Stusa, 45.
  8. Tsyvilnyi kodeks Ukrainy (2003). Zakon Ukrainy No. 435-IV. 16.01.2003. Available at: https://zakon.rada.gov.ua/laws/show/435-15#Text Last accessed: 12.09.2024
  9. Hospodarskyi kodeks Ukrainy (2003). Zakon Ukrainy No. 436-IV. 16.01.2003. Available at: https://zakon.rada.gov.ua/laws/show/436-15#Text Last accessed: 12.09.2024
  10. Pro aktsionerni tovarystva (2022). Zakon Ukrainy No. 2465-IX. 27.07.2022. Available at: https://zakon.rada.gov.ua/laws/show/2465-20#Text Last accessed: 12.09.2024
  11. Pro tovarystva z obmezhenoiu ta dodatkovoiu vidpovidalnistiu (2018). Zakon Ukrainy No. 2275-VIII. 06.02.2018. Available at: https://zakon.rada.gov.ua/laws/show/2275-19#Text Last accessed: 12.09.2024
  12. Pro kooperatsiiu (2003). Zakon Ukrainy No. 1087-IV. 10.07.2003. Available at: https://zakon.rada.gov.ua/laws/show/1087-15#Text Last accessed: 13.09.2024
  13. Pro banky i bankivsku diialnist (2000). Zakon Ukrainy No. 2121-III. 07.12.2000. Available at: https://zakon.rada.gov.ua/laws/show/2121-14#Text Last accessed: 13.09.2024
  14. Pro strakhuvannia (2021). Zakon Ukrainy No. 1909-IX. 18.11.2021. Available at: https://zakon.rada.gov.ua/laws/show/1909-20#Text Last accessed: 13.09.2024
  15. Polozhennia pro dobrovilnyi vykhid z rynku strakhovyka ta peredachu strakhovykom strakhovoho portfelia (2023). Postanova Pravlinnia Natsionalnoho banku Ukrainy No. 184. 25.12.2023. Available at: https://zakon.rada.gov.ua/laws/show/v0184500-23#Text Last accessed: 13.09.2024
  16. Poriadok zdiisnennia emisii ta reiestratsii vypusku aktsii aktsionernykh tovarystv, yaki stvoriuiutsia shliakhom zlyttia, podilu, vydilu chy peretvorennia abo do yakykh zdiisniuietsia pryiednannia (2013). Rishennia NKTsPFR Ukrainy No. 520. 09.04.2013. Available at: https://zakon.rada.gov.ua/laws/show/z0795-13#Text Last accessed: 14.09.2024
  17. Bobkova, A. H., Moisieiev, Yu. O., Pavliuchenko, Yu. M. et. al.; Bobkova, A. H. (Ed.) (2018). Hospodarske pravo. Kharkiv: Pravo, 592.
  18. Sishchuk, L. V. (2015). Reorhanizatsiia yurydychnykh osib: teoretyko-pravovi aspekty. Pryvatne pravo i pidpryiemnytstvo, 14, 32–36. Available at: https://repository.ndippp.gov.ua/handle/765432198/668
  19. Koverzniev M., Koverznieva H. (2017). Pravovyi aspekt reorhanizatsii yurydychnykh osib. Pidpryiemnytstvo, hospodarstvo i pravo, 6, 29–31. Available at: http://pgp-journal.kiev.ua/archive/2017/6/7.pdf
  20. Pravopys prefiksiv: ukrainske dilove movlennia. Available at: https://m.dilovamova.com/index.php?page=4&dmua=14&tdmua=%CF%F0%E0%E2%EE%EF%E8%F1-%EF%F0%E5%F4%B3%EA%F1%B3%E2 Last accessed: 07.09.2024
  21. Roussu, A. (2013). Peculiarities of Prefixes Vid- and Roz- in Verbal Terms, Denoting «Back Action». Volyn filolohichna: tekst i kontekst, 15, 293–301. Available at: https://evnuir.vnu.edu.ua/bitstream/123456789/7422/1/34.pdf Last accessed: 07.09.2024
  22. Pro hospodarski tovarystva (1991). Zakon Ukrainy № 1576-XII. 19.09.1991. Available at: https://zakon.rada.gov.ua/laws/show/1576-12#Text Last accessed: 07.09.2024
  23. Polozhennia pro poriadok stvorennia, reorhanizatsii i likvidatsii dochirnikh pidpryiemstv AT vid 01.12.2002 r. (2001). Available at: https://zakon.rada.gov.ua/rada/show/npl15697-02#Text Last accessed: 07.09.2024
  24. Chevychalova, Zh. V. (2008). Pravova pryroda dochirnoho pidpryiemstva [Extended abstract of PhD thesis].
  25. Nazarova I. (2011). Principles of information disclosure in the reorganization of the enterprise through the separation of individual departments. Visnyk TNEU, 4, 94−101. Available at: http://dspace.wunu.edu.ua/jspui/handle/316497/16034
  26. Luts, V. V., Vasylieva, V. A., Kibenko, O. R., Spasybo-Fatieieva, I. V. et al.; Luts V. V. (Ed.) (2010). Korporatyvne pravo Ukrainy. Kyiv: Yurinkom Inter, 384.
  27. Hlado, Yu. O., Martyn, V. M., Samahalska, Yu. Ya. et al.; Yavorska, S. O. (Ed.) (2020). Korporatyvne pravo. Drohobych: Kolo, 650.
  28. Shcherbyna, V. S. (2008). Subiekty hospodarskoho prava. Kyiv: Yurinkom Inter, 264.
  29. Shcherbyna, V. S., Rieznikova, V. V. (2023). Hospodarske pravo (Zahalna chastyna). Kyiv: Vydavnytstvo Lira-K, 588.
  30. Vinnyk, O. M. (2020). Hospodarske pravo. Kyiv: Vyd-vo Lira-K, 240.
  31. Yurkevych, Yu. M. (2009). Prypynennia yurydychnykh osib z pravonastupnytstvom [Extended abstract of PhD thesis].
  32. Postanova Verkhovnoho Sudu Ukrainy vid 12 bereznia 2020 r., sudova sprava No. 291/1478/18 (2020). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: http://www.reyestr.court.gov.ua/Review/88337602 Last accessed: 04.09.2024
  33. Ukhvala Verkhovnoho Sudu Ukrainy vid 29.04.2020 r. u spravi No. 291/1009/18 (2020). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: http://www.reyestr.court.gov.ua/Review/89130925 Last accessed: 04.09.2024
  34. Postanova Verkhovnoho Sudu Ukrainy vid 14 veresnia 2020 r., sudova sprava No. 291/1009/18 (2020). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/91786723 Last accessed: 23.09.2024
  35. Pro orendu zemli (1998). Zakon Ukrainy No. 161-XIV. 06.10.1998. Available at: https://zakon.rada.gov.ua/laws/show/161-14#Text Last accessed: 23.09.2024
  36. Vysitska, I. (2020). Vydil ne ye reorhanizatsiieiu: znachennia vysnovkiv Obiednanoi palaty VS dlia orendariv. Zemlevporiadnyi visnyk, 12. Available at: https://vysitska.com/2021/01/14/%D0%B2%D0%B8%D0%B4%D1%96%D0%BB-%D0%BD%D0%B5-%D1%94-%D1%80%D0%B5%D0%BE%D1%80%D0%B3%D0%B0%D0%BD%D1%96%D0%B7%D0%B0%D1%86%D1%96%D1%94%D1%8E-%D0%B7%D0%BD%D0%B0%D1%87%D0%B5%D0%BD%D0%BD%D1%8F-%D0%B2%D0%B8/ Last accessed: 05.09.2024
  37. Postanova Verkhovnoho Sudu Ukrainy vid 15 sichnia 2020 r., sudova sprava No. 904/11903/6 (2020). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/86933126 Last accessed: 05.09.2024
  38. Postanova Verkhovnoho Sudu Ukrainy vid 21 sichnia 2020 r., sudova sprava No. 904/8538/16 (2020). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/87056384 Last accessed: 05.09.2024
  39. Postanova Verkhovnoho Sudu Ukrainy vid 12 kvitnia 2023 r., sudova sprava No. 925/436/22 (2023). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/110306277 Last accessed: 12.09.2024
  40. Postanova Verkhovnoho Sudu Ukrainy vid 16 chervnia 2020 r., sudova sprava No. 922/4519/14 (2020). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/90228177 Last accessed: 20.09.2024
  41. Postanova Verkhovnoho Sudu Ukrainy vid 20 liutoho 2022 r., sudova sprava No. 910/2615/18 (2022). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/104292231 Last accessed: 01.09.2024
  42. Postanova Verkhovnoho Sudu Ukrainy vid 23 lystopada 2022 r., sudova sprava No. 908/70/22 (2022). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/108025369 Last accessed: 05.09.2024
  43. Postanova Kasatsiinoho tsyvilnoho sudu u skladi Verkhovnoho Sudu vid 18 veresnia 2023 r, sudova sprava No. 210/5663/20 (2023). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/114652684 Last accessed: 07.10.2024
  44. Havryliuk, V. M. (2014). Pravonastupnytstvo pry reorhanizatsii yurydychnykh osib za tsyvilnym zakonodavstvom Ukrainy [PhD dissertation; Kyivskyi natsionalnyi universytet imeni Tarasa Shevchenka].
  45. Postanova Pivnichnoho apeliatsiinoho hospodarskoho sudu vid 05.03.2020 r. u spravi No. 910/10802/18 (2020). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: https://reyestr.court.gov.ua/Review/88106487 Last accessed: 24.09.2024
  46. Postanova Verkhovnoho Sudu u skladi kolehii sudiv Kasatsiinoho hospodarskoho sudu vid 19 serpnia 2019 r., sudova sprava No. 922/4109/16 (2019). Yedynyi derzhavnyi reiestr sudovykh rishen. Available at: http://www.reyestr.court.gov.ua/Review/83876305 Last accessed: 14.09.2024
  47. Pro derzhavnu reiestratsiiu yurydychnykh osib, fizychnykh- osib-pidpryiemtsiv ta hromadskykh formuvan (2003). Zakon Ukrainy No. 755-IV. 15.05.2003. Available at: https://zakon.rada.gov.ua/laws/show/755-15#Text Last accessed: 14.09.2024
  48. Transformation Act (Umwandlungsgesetz) as of October 28, 1994. Available at: https://www.gesetze-im-internet.de/englisch_umwg/index.html Last accessed: 14.09.2024
  49. Yurkevych, Yu. (2009). Problemy pravovoho rehuliuvannia peretvorennia yurydychnykh osib. Visnyk Lvivskoho universytetu. Seriia «Iurydychna», 48, 166–176.
  50. Shcherbakova, N. V. (2015). Napriamy udoskonalennia zakonodavstva z pytan skladnoi reorhanizatsii yurydychnykh osib. Pravnychyi chasopys Donetskoho natsionalnoho universytetu, 1/2, 75−83.
  51. Shcherbakova, N. V. (2021). Complex reorganization constrations must have in the lagislation of Ukraine. Juridical Scientific and Electronic Journal, 12, 175–179. https://doi.org/10.32782/2524-0374/2021-12/42
  52. Movchan O. O. (2006). Legal succession during the reorganization of joint-stock companies by way of division and spin-off. Naukovi zapysky, 53 (Iurydychni nauky), 97−101. Available at: https://ekmair.ukma.edu.ua/server/api/core/bitstreams/e5f1e5bc-4570-4c03-ae4b-427b3f26ba85/content
  53. Kalimeyer in Kallmeyer, H. (Ed.). (2001). Umwandlungsgesetz: Kommentar; Verschmelzung, Spaltung und Formwechsel bei Handelsgesellschaften. Köln: O. Schmidt Verl., § 123 Rn. 8.
  54. Ganske, J. (Ed.) (1995). Umwandlungsrecht: I 2., aktualisierte Aufl.- Düsseldorf, IDW-Verl.
  55. Kodeks spółek handlowych 15.09.2000 (2000). Available at: https://isap.sejm.gov.pl/isap.nsf/download.xsp/WDU20000941037/U/D20001037Lj.pdf Last accessed: 08.09.2024

Downloads

Published

2024-09-30

How to Cite

Shcherbakova, N. (2024). Division and spin-off as legal forms of disaggregation of economic organizations. ScienceRise: Juridical Science, (3(29), 13–27. https://doi.org/10.15587/2523-4153.2024.313931

Issue

No. 3(29) (2024)

Section

Juridical Science

License

Copyright (c) 2024 Nataliia Shcherbakova

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Our journal abides by the Creative Commons CC BY copyright rights and permissions for open access journals.

Authors, who are published in this journal, agree to the following conditions:

1. The authors reserve the right to authorship of the work and pass the first publication right of this work to the journal under the terms of a Creative Commons CC BY, which allows others to freely distribute the published research with the obligatory reference to the authors of the original work and the first publication of the work in this journal.

 2. The authors have the right to conclude separate supplement agreements that relate to non-exclusive work distribution in the form in which it has been published by the journal (for example, to upload the work to the online storage of the journal or publish it as part of a monograph), provided that the reference to the first publication of the work in this journal is included.