Law of Ukraine "On Liability of Legal Entities for Corruption-Related Offences"
Date of entry into force: July 18, 2009
The Law establishes the liability of legal entities for the corruptionrelated offences committed by their authorized persons, and determines the procedure for bringing them to responsibility.
According to Article 2 of the Law, a legal entity is liable according to the Law for any actions committed on its behalf and in its interests, by the head of such an entity, its founder, participant or another authorized person, independently or in privity, that are characterized by the Criminal Code of Ukraine as legalization (laundering) of incomes received by illegal means, financing of terrorism, misuse of power or official position, abuse of power or official position, receiving or giving bribes, or interfering in the activity of judicial bodies.
According to Article 3 of the Law, the following types of penalty can be imposed on legal entities by court: · fine; · prohibition to carry out a certain type of activity; · confiscation of property; · liquidation of the legal entity.
The court can inflict a penalty in the amount from one thousand to fifteen thousand of minimum personal tax-free income (Article 4 of the Law).
Article 5 of the Law envisages that the court may prohibit a legal entity to carry out any types of activity defined in its statute documents, for a period from three months to three years.
According to Article 6 of the Law, confiscation of property entails mandatory and unpaid collection of property and income received by a legal entity as a result of offences committed by the entities defined by the law. The confiscated property and income are transferred into state ownership.
Liquidation of a legal entity may be imposed by the court only in case of a grave or especially grave crime. Liquidation of a legal entity is carried out according to the procedure provided for by the Law of Ukraine "On State Registration of Legal Entities and Natural Persons – Entrepreneurs".
Article 9 of the Law envisages the procedure for legal proceedings related to legal entities. The proceeding is carried out by the public prosecutor who took the criminal case to the court or supervised the legality of the forbearance to sue or the closing of the criminal case. Proceedings in the case starts from the time of drafting of a respective protocol by the public prosecutor. The public prosecutor, within five working days, but no later than six months after the grounds for the proceedings have arisen, drafts a protocol in respect of the legal entity and delivers it to the court and the legal entity in question. Attached to the protocol are materials necessary for objective proceeding in the case.
Cases related to legal entities are conducted by the same local common courts of law as the criminal cases. If the criminal case has not been opened, or has been closed, the case is conducted by a court on whose territory the legal entity is registered or located (Article 11 of the Law).
According to Article 15 of the Law, proceeding in a case related to a legal entity is carried out by a court within a fifteen-day term from receipt of the protocol by the court.
According to Article 16 of the Law, the court, having conducted a case related to a legal entity, makes a resolution to impose penalty or close the case.
Article 18 of the Law envisages that the resolution in a case related to a legal entity can be appealed by a representative of the legal entity or by a public prosecutor, according to the procedure of appeal and requirements established by this Law. The appeal can be filed to a court of appeal within 15 days of receipt of the decision from the court that made the respective resolution. Filing of an appeal against a court decision suspends its entry into force and enforcement.
An appeal shall be reviewed by an appeal court within a reasonable term, but no later than one month after its receipt by the court (Article 20 of the Law).
According to Article 21 of the Law, the decision of the court of appeal in the case is binding.
Article 23 of the Law establishes that a resolution or ruling of a court that already entered into force can be reviewed based on newly revealed circumstances. The following can be the grounds for review of a court decision based on newly revealed circumstances: · a valid court verdict that establishes intentional misrepresentation of a witness, invariably wrong expert conclusion or translation that caused an unlawful or unfounded decision to be made in respect of a natural person, resulting in bringing of the legal entity to responsibility; · cancellation of a court decision that was the basis for making the resolution or ruling that must be reviewed; · a valid court verdict that establishes that a judge is guilty of misconduct that resulted in making of an unlawful or unfounded ruling.
Decisions of a court of an appeal resulting from a review of a case based on newly revealed circumstances are not subject to appeal (Article 26 of the Law).
According to Article 27 of the Law, court resolutions (rulings) in a case related to a legal entity are carried out after entering into force. A court resolution (ruling) in a case related to bringing of a legal entity to responsibility is enforced by the court that made the decision.
Final provisions of the Law establish that the Law takes effect on January 1, 2011.