On The Need To Examine The Reasonability Of Maintaining A Complete Ban On Financial Assistance In Ukrainian Law In The Context Of Eu And Polish Legislation

  • Jedrzej Jerzmanowski
Keywords: financial assistance, leveraged buyouts, management buyouts.


As the results of empirical research have shown, to prohibit financial assistance completely is no longer a reasonable choice. To examine the ban on financial assistance in Ukrainian law seems a worthwhile task for Ukrainian legal scholars and the national legislator, as it could contribute to increasing the number of transactions in the Ukrainian capital market. When drafting the new law, it is recommendable that the Ukrainian lawmakers rely on the experiences of the states that have already eased their financial assistance bans (e.g. Poland, Italy, the Czech Republic). As far as the Polish case is concerned, it is useful to consider the following (1) the catalogue of financial assistance forms should not be too broad, to avoid the inclusion of such transactions that cannot comply with financial assistance legality criteria; (2) the drafted regulation should explicitly govern the admissibility of MLBO transactions and prevent mergers of excessively leveraged companies on their basis; and (3) it is particularly important to establish effective mechanisms preventing the conflict of interest in transactions when financial assistance is provided to an affiliate.


1. D. Van Gerven, Capital directive in Europe – the rules on incorporation and capital of limited liability companies, Cambridge 2014
2. G. Griffiths (red.), International acquistition finance – law and practice, Oxford 2006
3. Ch. Martin, S. Perry, Private equity – jurisdicional comparisons, London 2014
4. J. Jendrszczok, Die Grenzen der finanziellen Unterstützung des Aktienerwerbs in der Schweiz und in Deutschland: Eine rechtsvergleichende Untersuchung der gesellschafts- und zivilrechtlichen Beschränkungen der Heranziehung des Vermögens der Aktiengesellschaft zur Akquisitionsfinanzierung. Berlin, 2017
5. J. Jerzmanowski, Finansowanie przez spółkę akcyjną nabycia lub objęcia emitowanych przez nią akcji w procesie wykupu menedżerskiego. Warszawa 2016
6. M. Sattler, Financial assistance de lege ferenda, Hamburg 2014
7. J. Brosius Die finanzielle Unterstützung des Erwerbs eigener Aktien – §71a AktG im Gesamtgefüge des Kapitalerhaltungsrechts, Köln 2011
8. G. Strampelli, Rendering (once more) the financial assistance regime more flexible, Il Nuovo Diritto Delle Società 2012, Nr 18