Andriy Dovbenko: “Judicial reform is not perfect”

Андрей Довбенко: "Судебная реформа не идеальна"

Ukraine needs to radically change almost everything: courts, banks, education, medicine, law enforcement, transportation system and infrastructure. Every reform is difficult, pain, and incessant public and expert discussion. Lawyer, managing partner of international law firm Andriy Dovbenko told us about how ossified judicial system prevents developing business that need to change in the national Bank and why you need to get away from the concept of “copyright”.

The reform of the judicial system

Company Andriy Dovbenko specializiruetsya on support for businesses at various stages: creation, investments, mergers and acquisitions, resolving disputes, financial restructuring.

As a lawyer, Andriy Dovbenko works with Ukrainian and foreign companies, including in the legal field other States. Years of experience allows him to see problems holistically and from different angles: “the Reform of the judicial system than a business. The current system is, in fact, the Soviet — she’s not taking a private entrepreneur as a participant of legal relations. It is only the state and the individual”.

According to Andriy Dovbenko, the Ukrainian judicial system is characterized by a certain speed and this is her undoubted dignity. “Less well a large number of stages of appeal, we do not need much. You must make allowances for the mentality in our country at the same time to work and sue is normal. In the West, when it comes to court is the finish of the relationship,” explains the lawyer.

System changes do not happen overnight. Uganda can not overnight become Austria, but it might be Romania. “Judicial reform is not perfect, but it needs to be done even in this form. Already required the Supreme Court to implement the global objectives that are blocked by the decision of local courts,” — said Andriy Dovbenko.

Effective changes in corporate law

Andriy Dovbenko sure — qualitative changes occur in the area of corporate law. For example, the legislative initiative on the mechanism of the so-called squeeze-out contributes to the displacement of minority shareholders. If minority shareholders do not want to sell their shares, in Ukraine, to influence them from the point of view of the law is impossible. The presence of such minority shareholder makes a purchase of a controlling stake less attractive. The result of the situation may be different, including refusal of investment. “In my practice quite often had to work under English law. There are a number of effective tools that are inaccessible to Ukrainian law. For example, when the owner of the majority package is going to sell the business, the potential buyer asked about the agreements with minority owners” — explains the situation Andriy Dovbenko.

“In English law there is also a rule tag-along: a minority shareholder may attach itself to the majority in the sale. In the case of purchases of shares above a prescribed threshold (typically 95% of shares or more), not only the new owner can require the sale, but the minority shareholders have the right to demand redemption of their shares at a value not below the market. However, all of these useful mechanisms and initiatives will only work under the condition of normal work of the courts and law enforcement system”, – summed up Andriy Dovbenko.

The banking system as a stumbling block

The national Bank of Ukraine stands in front of a huge number of unsolvable problems. One of the weaknesses of our financial system — the sphere of bankruptcy: there are the most absurd and dishonest trading. “The main problem is speed. The system is aimed at freezing the laws work for the debtors. A debtor is a business, which do not converge debit with credit, they should not be on the market,” says the processes related to bankruptcy, Dovbenko Andrei.

Enterprise and die cut for scrap decades. And while there is no systematic attempt to reform the bankruptcy system. Enough the market rallied, and, to some extent, undermined by National Bank. Historically, in this respect, there was a strong Ukrainian banks with broader instrumentation and a deep understanding of local peculiarities. However, such “live” market participants have very little.

A lawyer openly talks about the banking sector of Ukraine: “what is happening today, all these statements that some banks were used for money laundering or for any other wrong purposes is just an excuse for the lack of political will”. Andriy Dovbenko sure that financial monitoring has a huge amount of authority and financial intelligence works on a global level, so check out banks is no problem.

About intellectual property

In the process of reforming the Ukrainian state is quite acute, the issue of intellectual property rights. It is known that Ukraine is the country with the problems in the field of intellectual property law. Our interlocutor, the lawyer Andriy Dovbenko, believes that globally the world needs to get away from the copyright. Need to seek other types of earnings from intellectual products and to monetize it differently.

However, this does not mean that we should violate the existing law. According to the lawyer, meaning in the courts on issues of intellectual property and anti-corruption initiatives should be regulated at the level of the chambers. Also, as it makes no sense to create new bodies like the NEB and KAS in the hope that they will work differently and their services will be more efficient.

In the issue of intellectual property rights Andriy Dovbenko relentless: “Why in Ukraine there are good pros? Due to the lack of copyright. They get a good education, and then just download everything they need, and hone their skills. To do IT in the US is expensive with the purchase of all copyrights. Companies that look to the future, must remove it from their business processes.” Innovation is not to create a closed system, as did the Microsoft brand, and to develop, to innovate, to spur the evolution of technology and progress. This is the future.