Corporate Structuring

Corporate structures are like mirrors in which you can see the state of business development. Frequently, the development process is not so straight and easy. That is why corporate structures may have some unactual or non-important elements, which could become obstacles in the investment process or in obtaining a loan or, moreover, may be unsuitable for the current aims and functions of the business corporate structure.

The client might consider the construction of parallel structures, combined with the division of operating activities functions and ownership, as well as the transfer of corporate ownership to holding companies in foreign jurisdictions, which may be considered as an additional security means in an unstable jurisdiction.

The inflexibility of national corporate legislation and instability of court practice are some of the basic reasons for the business to agree on basic issues in a safer and more predictable jurisdiction. This would enable the business to have use of a more developed corporate legislation, including in the sphere of shareholder agreements regulation.

Corporate structuring does not necessarily include the transfer of corporate ownership to foreign jurisdictions. National legislation and the possibilities it provides should not be neglected when acquiring assets in Ukraine or concluding any agreements between partners. It may have an effect not only on the resolution of the corporate conflict but also on taxation, division of jointly acquired property of the spouses, inheritance, etc.

Hrynchuk and Partners law firm can conduct the analysis of existing corporate structures, provide recommendations on the need for foreign jurisdictions usage, represent the client in negotiations on the purchase of corporate rights, including representation during negotiations on the terms of shareholder agreements. Hrynchuk and Partners law firm also provides consultations on corporate structuring in popular foreign holding jurisdictions and on transformation to less “overregulated” legal entities (e.g. from a joint stock company to LLC).

Andriy Hrynchuk, Managing Partner, will be glad to answer your questions regarding cooperation on these issues.