Express Dissolution of NGOs: An Alternative Approach to Liquidating Organizations

A client, a former political figure who had founded his own non-governmental organization, recently approached us. He decided to withdraw from public life and wanted to avoid any mention in public registries, including those related to civic organizations. He aimed to withdraw from the organization and ideally dissolve the NGO altogether. We possess considerable expertise in handling such matters and are prepared to offer expert assistance in addressing complex issues. Our specialists are adept at assisting clients in these situations by minimizing risks and ensuring legal compliance, so we readily undertook the task.

We explained to the client that the dissolution process is lengthy and could take a significant amount of time, even if we attempt to expedite it. The client was aware that this would not be a matter of days or even months. Therefore, we proposed an alternative solution—transferring ownership of the NGO to other individuals. This is often referred to as express dissolution or alternative dissolution, a topic we have frequently covered in our publications, such as the article "Alternative Dissolution of LLCs: Disposing of a Company Without Dissolving the Legal Entity." This method allows for a swift withdrawal from the organization without terminating its existence as a legal entity. Legally, this is executed by having the old leadership and members exit the organization, while new ones take their place. 

In fact, many clients are interested in acquiring an NGO that already has a certain history, rather than one that is newly established. Additionally, there are those who, for an extra fee, are willing to take on the burden of dissolving an NGO. From our experience, we know that the topic of organization dissolution is relevant for many individuals who wish to change their life's direction. Highlighting this case will help provide answers to important questions, explain how to proceed in similar situations, and describe the process of alternative dissolution of an NGO. We will also discuss: 

• Is it possible to carry out the alternative dissolution of an NGO without the presence of the founder?
• How to remove the founder from an organization if they are not in Ukraine?
• It is possible to remove information about the founder from the Unified State Register?

This article will be useful for anyone planning the dissolution or transfer of an organization, particularly for those who cannot be physically present to oversee the procedure due to various reasons. If you are interested not only in information but also in practical assistance, we are always ready to help. We provide a full range of services, from consultations to complete management of the organization’s exit and dissolution process. We guarantee confidentiality and legality with every step, ensuring your peace of mind and confidence in the outcome.

You may also like: "Requirements for NGO Founders: Who Can Be Founders of a Public Association?

Alternative Dissolution of an NGO: The Specifics of This Process

What exactly entails the alternative dissolution of a non-governmental organization? It primarily involves finding individuals willing to voluntarily assume management of the organization. This process typically unfolds at a general meeting where new members are admitted to the NGO, and existing members are officially removed. At the same meeting, a change in leadership is also ratified. A new leader must be appointed simultaneously as the old one is dismissed, especially if the organization has a collegial executive body.

We successfully identified and introduced such individuals to our client, who have now taken on active roles as members and leaders of the organization. If you require similar services, we are prepared to ensure a seamless and legally sound transition, providing comprehensive support throughout the process.

Re-registration at the Ministry of Justice During Express Dissolution of an NGO

Many are already aware that the current processing times at the Ministry of Justice are exceedingly slow due to significant staff reductions. The review period can be greatly extended—if there are any issues with the initial submission, it might take an additional month to resolve. In detail, it could take three plus eighteen working days for the Ministry of Justice to process documents, as they extend their own review timelines. However, if documents are correctly prepared from the outset, it is possible to avoid rejections and expedite the outcome.

Thanks to our lawyers' extensive practical experience, we managed to navigate this stage alongside our client without any delays. If you also need to expedite any registration actions for a public organization, you can count on us. Additionally, while handling this case of express dissolution of a public organization, we encountered two more significant issues.

How to Remove a Founder from an Organization if They Are Not in Ukraine? 

To exclude a founder who is located outside of Ukraine, as was the case with our client, a power of attorney compliant with international document regulations is necessary. This requirement holds regardless of the country where the founder or organization member resides. In such instances, we draft a power of attorney for the founder, who must then have it notarized and either apostilled or legalized (and in some countries, even this is not required). Armed with this power of attorney, we can sign all the necessary documents to carry out the express dissolution of the organization on their behalf.  

Is It Possible to Remove Information About NGO Founders from the Unified State Register?

Yes, it is possible to remove information about the founders of an NGO from the Unified State Register (USR). Details on how this can be done can be found in our article titled "Alternative Dissolution of an NGO: How to Get Rid of an Unwanted NGO." Who becomes the new founders? No one! Indeed, it is feasible. In the Unified State Register, the "founders" field simply indicates that the founders are members of the organization, without listing any names. Thus, we assisted the former public figure in exiting the organization, as publicity was no longer desirable. The entire process occurred without his physical presence, quickly and conveniently for the client via power of attorney.

If you find yourself in a similar situation, we are here to assist you. Our team will find individuals to replace you in the respective roles and within the organization's membership and will conduct all necessary procedures with the appropriate authorities on a turnkey basis. We ensure complete confidentiality and the execution of the express dissolution of the NGO without unnecessary formalities and within the shortest possible terms.

Contact us today for legal consultation or comprehensive legal support in your matter!