The article examines the problems and prospects of improving the legal status of farm enterprises in the context of Ukraine’s progress toward European integration. The experience of EU Member States (Germany, France, Poland, Italy, and the Netherlands) concerning the legal regulation of farm enterprises’ activities is studied. Proposals are formulated for improving domestic legislation and adapting it to EU standards. An author’s definition of the concept of a farm enterprise is proposed, adapted to EU standards and practice, taking into account the provisions of EU Regulations and the national context of Ukraine. The article reveals the specific features and development trends of the supranational regulation of farm enterprises in EU law, which is formed within the framework of the Common Agricultural Policy of the European Union (CAP) and encompasses a complex of legal acts aimed at the organization of agricultural activity, the ensuring of sustainable rural development, and the support of farm enterprises as key actors of the agricultural sector.

The article discloses the essence, content, and possible ways of resolving the issues related to the legal nature of relations arising between the members of a farm enterprise, the procedure of governance of the farm enterprise, the legal regime of its property, property liability, and other related issues. Proposals are developed regarding amendments to the current legislation aimed at eliminating the shortcomings of the Law of Ukraine “On Farm Enterprise”.

Particular attention is paid to the study of the legal status of farm enterprises in Ukraine as a unique form of entrepreneurial activity of citizens, which, having the status of a legal entity, differs from other organizational and legal forms of legal entities provided for by the Civil Code of Ukraineand other legislative acts. The issues concerning the legal nature of relations among the members of a farm enterprise, the procedure of governance, the legal regime of its property, and the property liability of the farm enterprise and its members are considered.

It is proposed to amend the Law of Ukraine “On Farm Enterprise” in order to: define the concept and clarify the composition of property forming the composite capital of the farm enterprise; establish the procedure for determining the size of the shares of the members of the farm enterprise in its composite capital; and establish whether the number of votes belonging to a member of the farm enterprise depends on the size of that member’s share in the composite capital or is independent of it.

In the mentioned law, it is advisable to define possible models of managing the affairs of the farm enterprise, with the choice of a specific model being made by the members of the enterprise.

It is also advisable to enshrine a clear distribution of powers between the sole executive head of the farm enterprise and its collective body (the general meeting of members), if such a body is created, as well as the possibility of delegating certain powers to the sole executive. It is also advisable to establish the correlation between the liability of the farm enterprise and the liability of its members for the obligations of the enterprise, and, finally, the procedure for the allocation of property to a member who leaves the farm enterprise and the procedure for the transfer of the farm enterprise’s property to its members in the event of liquidation of the enterprise.

According to the authors, these and other issues, in addition to the Law of Ukraine “On Farm Enterprise”, could also be addressed in a new version of the Model Agreement on the Establishment of a Family Farm Enterprise.

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