How to leave an association in Ukraine?
In July 2020, we were contacted by a Client, a representative of the association, who had to withdraw two of its members because the association was under termination.
The Client needed legal assistance, as the procedure of withdrawing members from the association involves several stages, which you should strictly follow in the process.
What is the difficulty of the withdrawal procedure for association members?
The procedure can be conditionally divided into two stages:
- The issue shall be first resolved at the level of each legal entity, representatives are delegated to the general meeting of the association. This procedure should be carried out quickly. However, the situation was complicated by the fact that there were six members of the association, with each of them it was necessary to carry out this work;
- The second stage is the holding of the meeting and signing of the association’s documents.
In addition, some provisions of the association’s charter were outdated. And the charter is given special attention, because it must meet the requirements of a number of regulatory documents, among which are the Model requirements for the establishment of a business association for General Exemption from the Requirement to Obtain Prior AMC Clearance.
Thus, in the case of our Client, it was necessary to completely update the documents of the association and carry out preparatory work with all members of the association.
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Given all the nuances of the Client’s case, the work was carried out in several stages:
Preliminary consultation. First, our specialists analyzed the documents available to the Client and explained what is required of him. And we didn’t require much: only a copy of the current charter and the readiness of all or at least the absolute majority of association members to cooperate. All the rest will be prepared by us.
Preparing for the meeting and signing documents. To exclude members from the association, it is necessary to gather a general meeting of members and draw up the minutes, the signatures on which should be certified by a notary. In our Client’s case, it was also necessary to approve the new version of the charter, as some provisions of the current version were outdated, and secondly, it was signed by all the members, two of whom had to be withdrawn.
We had several options to build our work: first, all the members who remained in the association expressed their desire to sign the new charter. But when we tried to agree on the time of the meeting at the notary, we found that not everyone can delegate their representatives for the same time. That is why we suggested that the general meeting should be held online, and only the elected chairman and secretary of the meeting came to the notary to certify the charter and minutes, and all the other members put their signatures in the register of attendants in course.
The proposed procedure of holding the meeting and signing the documents helped to save time and complete the preparatory stage in record time.
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Our lawyers cooperate with a notary who can act as a state registrar, so the documents for making changes in the association and registering its new charter were submitted immediately after signing. And all the changes were registered on the next business day.
This case demonstrates that even such a procedure as withdrawal of members from an association can be carried out quickly and without problems, provided that the process is professionally organized.
Of course, the situation can also be complicated, for example, when other members do not agree on withdrawing the association members, or, for example, if one of the association members is a non-functioning LLC. However, even such situations can be successfully solved by correctly calculating the time and actions.
If you want to register or dissolve an association, or have any questions about its business activity, don’t hesitate to contact us. We will help to solve any of your issues simply and efficiently.