LEGAL MECHANISM OF BANKRUPTCY OF STATE-OWNED ENTERPRISES IN UKRAINE

Abstract

Background. As of today, there is no effective legal mechanism for the bankruptcy of state-owned enterprises in Ukraine, as the ECtHR has repeatedly stated in its decisions. The problem is due to the legal prohibition of liquidation and rehabilitation of such enterprises, as well as the fact that creditors do not have any other tools to protect their rights in Ukraine and are forced to apply to the ECtHR as a last resort. Ultimately, the reality in Ukraine today is that, in practice, the rights of creditors of state-owned enterprises have not been guaranteed or protected by national courts for decades, and isolated appeals to the ECtHR do not solve this problem in general. The aim of the article is to outline specific legislative problems of bankruptcy of state-owned enterprises, as well as to develop proposals for further improvement of the organizational bases of bankruptcy of state-owned enterprises. Materials and methods. The theoretical basis of the article was the scientific works of scientists from different fields of law, who in one way or another investigated the problems of the bankruptcy of state-owned enterprises in Ukraine. The philosophical methods of cognition (dialectical, hermeneutic), general scientific (analysis and synthesis, system-structural, modeling, abstraction, formal-logical, historical) are used and special methods used in jurisprudence (methods of interpreting the rules of law, legal-dogmatic, comparative legal). Results. An analytical analysis of the existing mechanism of bankruptcy of state-owned enterprises in Ukraine after the reform of legislation in 2018 and the adoption of a qualitatively new Code of Ukraine on Bankruptcy Procedures is conducted. Specific problems of the legislation of Ukraine which make impossible the effective legal mechanism of bankruptcy of the state enterprises in Ukraine are outlined. Further directions of improvement of organizational bases of bankruptcy of the state enterprises in Ukraine are offered. Conclusion. The Bankruptcy Procedure Code of Ukraine makes the reorganization of a state-owned enterprise and the sale of the property of a bankrupt state-owned enterprise subject to the political will of the representatives of the bodies authorized to manage the respective state-owned enterprise. The Cabinet of Ministers of Ukraine, as well as the central executive bodies, do not prevent the bankruptcy of state-owned enterprises by their policies and actions. In Ukraine, this problem is extremely acute because, on the one hand, there is objectively no state support for state-owned enterprises that are insolvent, but on the other hand, courts and arbitration trustees cannot eliminate or restore the solvency (reorganization procedure) of state-owned enterprises through legislation. obstacles.