Amendments to the Law "On Land Lease"

On the 26th of September the changes introduced by Law No. 2255-IX "On Amendments to Certain Laws of Ukraine on Improving the Mechanism for Countering Raiding" entered into force.

In particular, changes were made to the third part of Article 31 of the Law "On Land Lease", which regulates the termination of the land lease agreement. It was supplemented with new norms.

Thus, the act of terminating the lease (sublease) of agricultural land, the lessee (sublessee) of which is a legal entity under private law (except for a joint-stock company, general and limited partnership), is a significant act and requires prior approval by the general meeting of participants or another higher body of such a legal entity, a decision to consent to its execution (unless the statute of the legal entity expressly provides that such a transaction is not significant).

In the event that the general meeting of participants or another higher body of the legal entity does not adopt a decision to grant consent to the execution of such a significant transaction (unless the charter of the legal entity expressly provides that such a transaction is not significant), such transaction is void.

Thus:

1) it is talked about the transaction on the termination of the lease (sublease) of land namely for agricultural purposes;

2) the lessee (sublessee) under such a significant transaction is a legal entity under private law (exceptions are a joint-stock company, general and limited partnership);

3) such a transaction requires the prior adoption by the general meeting of participants or another higher body of such a legal entity of a decision to grant consent to its execution (with the exception of the provisions of the statute of the legal entity that such a transaction is not significant);

4) the consequence of non-acceptance by the general meeting of participants or another higher body of a legal entity of a decision to grant consent to the execution of such a significant transaction (unless the charter of a legal entity stipulates that such a transaction is not significant) is the nullity of the transaction.