The Verkhovna Rada approved the draft law on restricting the activities of legal entities — business opposes it

Author:
Anastasiia Mohylevets
Date:

The Verkhovna Rada of Ukraine approved draft law No. 11443 as a whole, which should harmonize the responsibility of legal entities for corruption with international standards.

MP from "Voice" Yaroslav Zheleznyak reports this.

261 MPs voted pro. The document introduces into the Criminal Procedure Code of Ukraine the concept of "temporary restriction of the activity of a legal entity", that is, a ban on a certain type of activity.

This is a measure to ensure criminal proceedings. It will be applied if they have "sufficient grounds to believe" that in the interests of the legal entity they are committing "actions that hinder criminal proceedings". That is, investigators and prosecutors will actually use this basis at their discretion, writes Sudovo-yuridychna gazeta [Judicial and Legal Newspaper].

It is about the prohibition of participation in public procurement, privatization of property, extension of a lease agreement, use of a license, advertising of oneʼs products and services, etc.

The public business movement "Manifesto 42" stated that draft law No. 11443 violates Article 42 of the Constitution, which guarantees citizens the right to entrepreneurial activity permitted by law. The day before, "Manifesto 42" warned that if the document is adopted, it will initiate a submission to the Constitutional Court.

Adoption of draft law No. 11443 will harm small businesses and limit the activities of companies whose guilt has not been proven, convinced members of the Ukrainian Union of Industrialists and Entrepreneurs (USPP). They fear that this will lead to a reduction in jobs and negatively affect the economy.

According to Zheleznyak, by approving two documents on the responsibility of legal entities and on amendments to the Tax Code, the Verkhovna Rada fulfilled all obligations to the OESD — this is important for Ukraineʼs further membership in the organization.

For more news and in-depth stories from Ukraine please follow us on X.