Participant’s application for withdrawal from the Limited Liability Company (LLC)

By the legislation of Ukraine, which regulates the activities of legal entities, members of a limited liability company (LLC) have the right to apply for withdrawal from the LLC under certain conditions and measures.

The procedure for the participant’s exit from the LLC is an important legal aspect that requires the correct implementation of the relevant procedures and interaction with other LLC participants and management bodies.

Grounds for the participant’s exit from the LLC

The participant’s exit from the LLC is governed by the relevant provisions of the Civil Code of Ukraine and the Law of Ukraine “On Limited and Additional Liability Companies”.

According to this legislation, the participant has the right to withdraw from the LLC in the manner and under the conditions determined by the founding documents of the LLC and the legislation.

When a member of an LLC has less than 50% share in the authorized capital, he can withdraw from the LLC without the need to obtain the consent of other members by contacting the state registrar or notary with the necessary documents, such as a completed application for state registration of a legal entity, a receipt for the payment of administrative fee and an application for withdrawal from the LLC, which is confirmed by a notary.

After registration of these documents in the Unified State Register, the participant will be considered to have left the LLC.

If a participant’s share in the authorized capital exceeds 50%, exit is carried out only with the consent of other participants. To do this, it is necessary to notify each participant with a request to give consent to exit.

The signature on the application must be notarized. The other members have a month to make a decision about giving consent to withdraw. After the decision is made, exit documents are sent for state registration, and after their registration, the participant will be considered to have left the LLC.

The procedure for submitting an application for exit from an LLC

Submitting an application to withdraw from an LLC involves certain procedural steps, which are determined by the founding documents of the LLC. Usually, these documents contain information about what procedures and conditions a participant must fulfill in order to exit the LLC.

The application for withdrawal from the LLC shall be submitted in writing and must be addressed to the management body of the LLC or another authorized person specified in the founding documents.

The application for withdrawal from the LLC must contain the following information:

• Full name of the member of the LLC who submits the application.
• Application submission date.
• Motives and circumstances prompting the participant to leave the LLC.
• Desired date of exit from the LLC.
• The signature of the participant or a person who, according to the constituent documents, has the right to sign such documents on behalf of the participant.

The exit of a participant from an LLC can have important consequences for the LLC itself and other participants. Usually, the founding documents of an LLC contain relevant provisions regarding the procedures and consequences of a participant’s exit, such as balance sheet calculations, obligations to pay taxes and fees, restrictions on participation in competition, etc.

After receiving the application for exit from the LLC, the management body of the LLC must conduct the necessary verification of compliance of the application with the requirements of the constituent documents and legislation. In case of compliance, the application is considered on general terms, taking into account the rights and interests of other members of the LLC.

After the decision on the exit of the participant from the LLC is made, a corresponding document is drawn up, which is signed by authorized persons and certified by the seal of the LLC. The participant receives a copy of this document as confirmation of his exit from the LLC.

Therefore, the participant’s application to withdraw from the LLC is an important legal document that determines the legal status and relationship between the participant and the LLC.

It must meet the requirements of the legislation and the founding documents of the LLC and be drawn up in accordance with the established procedures.

The process of withdrawal of a participant from an LLC has its own characteristics and consequences, so its implementation requires a careful study of the relevant legal acts and consultations with a qualified lawyer.