Corporate Rights Reassignment
3 August, 2022
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A Client approached Interlegal regarding the reassignment of corporate rights for their Ukrainian subsidiaries to individual residents of Ukraine. The Client also has a holding company in Cyprus.
Given the changes in company structure and the martial law in Ukraine, the Client required consultation on determining the value of corporate rights, the procedures and timelines for transaction settlements, and taxation in Cyprus and Ukraine.
It is important to understand in such transactions whether the involved parties are related and if there is a need to obtain approvals from antimonopoly authorities. To avoid accounting issues, it is necessary to coordinate document drafts with Cypriot auditors.
After analyzing the latest guidance from tax authorities and judicial practice, Interlegal lawyers prepared a written opinion addressing the Client’s queries and providing recommendations for further actions.
