Social and Legal Studios

Abstract

Farms are one of the organizational and legal forms, by means of which a significant amount of investments is attracted into the Ukrainian economy. In order to attract investments, it is necessary to protect the rights and legitimate interests of creditors, and then they could earn more by investing. Investors are interested in the simplicity of not only the establishment and operation procedure, but also the effective process of farm bankruptcy. For a long time the legal regulation of farm bankruptcy has been carried out through the following legislative acts: the Economic Code of Ukraine, the Civil Code of Ukraine, the Law of Ukraine “On Restoring Solvency of Debtors or Recognition of Debtors’ Bankruptcy”, the Law of Ukraine “On Farms” and others. These acts contain gaps and shortcomings in the bankruptcy procedure of economic entities, in particular farms. In connection with this, in order to improve the legislation in the field of farms bankruptcy and raise the place of Ukraine in the Doing Business rating, the Code of Ukraine on Bankruptcy Procedures was adopted. Purpose. The purpose of the article is to determine and carry out an analysis of the main legislative acts concerning legal regulation of bankruptcy of economic entities, in particular farms, to explain factors that cause a negative impact on the economy of Ukraine, in particular on business doing, to make proposals for improving the bankruptcy procedure of farms and to raise the place of our state in the Doing Business rating. Methods. The paper includes such methods of scientific knowledge as historical-legal, structural-functional, and method of complex analysis. Results. The scientific novelty of the main results of the study is to determine and carry out an analysis of the main legislative acts concerning legal regulation of bankruptcy of economic entities, in particular farms, to explain factors that cause a negative impact on the economy of Ukraine, in particular on business conduct, to make proposals for improving the bankruptcy procedure of farms and to raise the place of our state in the Doing Business rating. Conclusion. In order to raise the place of Ukraine in the Doing Business rating, it is necessary to improve the legislation on bankruptcy of farms by introducing the relevant amendments to the Code of Ukraine on Bankruptcy Procedures, to provide supplements to its provisions concerning the duty of a bankrupt to file an announcement on the bankruptcy proceedings of farms in the official printed mass media and determination of the shortest terms for carrying out this action; the liability in the form of imposing a fine for failure to submit an announcement on the commencement of proceedings in the bankruptcy case of the farm in the fixed term; establishment of the length of the bankruptcy procedure of a farm up to 2 years from the filing of an application for opening bankruptcy proceedings, etc.

Keywords: bankruptcy, creditors, farm, Code of Ukraine on bankruptcy procedures, “Doing Business” rating

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