Reform of the Management of Communally Owned Legal Entities: EU-LEAP Conducted Training for Communities on the Implementation of Law No. 4196-IX

The first training within the project "Implementation of the Reform of Management of Communally Owned Legal Entities under Law No. 4196-IX," implemented by EU-LEAP in partnership with the Association of Ukrainian Cities, the All-Ukrainian Association of Amalgamated Territorial Communities, and with the support of JTI Ukraine, was held in Kyiv.

The event brought together 90 participants — representatives of local self-government bodies and municipal enterprises from Kyiv and Chernihiv regions — to discuss the practical aspects of implementing the Law of Ukraine No. 4196-IX.

One of the key challenges today is the practical implementation of the new Law by communities. This training opens a series of regional events aimed at building a common understanding of the reform of corporatization of municipal enterprises and introducing modern corporate governance instruments at the local level.

The trainings were dedicated to explaining the legal rationale and practical mechanisms for implementing Law No. 4196-IX in the field of management of communally owned assets. Participants were presented with the key changes in approaches to the establishment, operation, and reorganization of communally owned legal entities, the new role of local self-government bodies as owners, as well as the specifics of the legal regime of municipal enterprises during the transition period.

Special attention was given to permissible organizational and legal forms, mechanisms for reorganizing municipal enterprises, issues of municipal asset management — including the application of usufruct — as well as procedural aspects of enterprise transformation, including asset inventory, formalization of succession, contribution of assets to the authorized capital, transfer of land rights, tax matters, and the preservation of permit documentation.

The trainings also covered the principles of corporate governance, restrictions on asset disposal, and practical approaches to applying the law when working with typical cases.

Following each training, the project team collects feedback, which will be used to refine methodological materials and develop practical recommendations.

The project is expected to contribute to raising awareness among community representatives regarding the effective management of communally owned legal entities, the reorganization of municipal enterprises, and the effective management of the assets of such legal entities.