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1. Reorganization of State Enterprises in the Course of Preparation for Privatization
Reorganization of state enterprises that does not entail privatization is a constituent element of general restructuring of the state sector of economy of Ukraine which is stipulated in numerous Presidential Edicts and Decrees of the Cabinet of Ministers of Ukraine. Thus, Paragraph 4, Item 5 of Section 2 of Decree of the CMU “On measures of realization of activity of the Cabinet of Ministers of Ukraine” of 18 October 1996 No 1396 envisions elaboration of enterprise restructuring plans for each branch of economy.
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2. Reorganization of State Enterprises upon Decision on Privatization
The notion “preparation of enterprises for privatization” was introduced in Section 2 of Law of Ukraine “On State Privatization Program” of 12 February 1998 No 124/98-VR. Procedure of preparation for privatization was further elaborated in “Regulations on Preparation of Enterprises for Privatization” approved by Decree of the CMU of 17 August 1998 No 301
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3. Reorganization of Enterprises of Collective and Private Types of Ownership
All types of economic entities are referred to the collective type of ownership as stipulated in the Law of Ukraine “On Ownership”.
Decisions on reorganization of economic entities are made by their supreme bodies and registered in a corresponding protocol. Article 19 of the Law of Ukraine “On Economic Entities”
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Source: Goverment of Ukraine/ World Bank EDAL Bankruptcy and Liquidation Project Debt Restructuring Training Manual
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