A LEGAL ANALYSIS OF THE IMPACT OF THE REPEAL OF A CODIFIED ACT ON ECONOMIC ACTIVITY IN THE CZECH REPUBLIC AND UKRAINE

Abstract

This study examines the process of repealing the Commercial Code in Ukraine and the Commercial Code of the Czech Republic. A comparative analysis has revealed the risks of a decline in, and the loss of, clear mechanisms for regulating economic activity in both countries. The time difference between the repeal of the codes in the two countries is approximately 13 years, but the process of adopting legislative acts that created gaps in the legal regulation of economic activity was almost identical. The study draws attention to the similar influence of the socialist legal system on the development of law-making and law enforcement in the states, the planned nature of economic activity in the historical past, the timing of decisions to repeal codified documents in the state, the latter’s efforts to become a full member of the European Union, and other similar factors. 

Based on this analysis, it can be argued that the repealed provisions governing economic activity in the states served as a foundation, and that the specific laws will not fully regulate these legal relationships; instead, they will have to be interpreted by analogy, which will reduce legal certainty. The overloading of the Civil Code of the Czech Republic with public law provisions has led to the publicisation of private law. In Ukrainian legislation, the situation is particularly detrimental to enterprises in the state and municipal sectors of the economy. These enterprises may lose the legal instruments to protect their interests and will be left subject to private law regulation, which does not take into account the public interests of society and the state. Questions will also arise regarding the stability of commercial contracts, the specific regulation of which was provided for precisely by the Commercial Code of Ukraine; as a result, there will be a need to restore these provisions through separate laws or judicial practice. Given the European principle of legal certainty and the rulings of the European Court of Human Rights, the importance of legal predictability for economic operators is called into question. As previous studies have shown, an analysis of the legal regulation of economic relations within the country-whether based on a codified act or not-is of great importance for the sustainable development of business in the country.

Key words: Commercial Code of Ukraine, Commercial Code of the Czech Republic, expiry, commercial activities