LEGAL REGIME OF PROPERTY OF UKRAINIAN LEGAL ENTITIES

Abstract

This article examines the existing legal regime of property of legal entities under Ukrainian legislation. Various forms of legal right to property are analysed by the author: ownership, right of economic and operational management, right to use and other real rights and rights of obligation (rights in personam). Most existing titles are controversial, both from a theoretical and practical standpoint. From a theoretical standpoint, it is rather hard to distinguish these forms one from another and to point out their peculiarities. This is especially true about rights of economic and operational management, which were designed in the Soviet period for the purposes of the Soviet economy, but somehow remained in modern Ukrainian legislation. As existing case law shows, this leads to numerous legal disputes which reveal, in particular, the problems of liability of a legal entity and its property independence. The most notorious among these disputes are analysed in the paper, including the dispute between the Ukrainian state and Ukrainian trade unions regarding property transferred to them by the former USSR, the dispute between certain Ukrainian companies and the Russian Federation on property expropriated in Crimea. Based on the analysis, the author suggests certain solutions to existing problems. First, the author insists on recognizing legal entities as property owners. Second, the author proves that public companies need more detailed regulation and are to be provided a clear legal status. It is preferable to stipulate these issues in the Civil Code of Ukraine thus providing comprehensive regulation on all types of legal entities.