Recently, raiding in Ukraine has reached alarming levels. Despite the adoption of a number of regulations aimed at strengthening property rights protection and improving the investment climate in the country (such as the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of State Registration of Real Property Rights and Protection of Property Rights,” the creation of the Commission for Complaints in State Registration, the “Mask-Show Stop” laws, and others), the number of raiding attacks remains extremely high.
The most frequent targets of raiding are agricultural enterprises (land plots), high-value real estate (commercial or industrial real estate, luxury housing), high-profit enterprises, and businesses with significant assets.
Taking certain preventive measures, such as business structuring, protecting insider information and commercial secrets, controlling accounts payable, setting limits on the director’s authority, and creating obligations for the company toward other (friendly) enterprises, will significantly minimize the risk of successful raiding attempts. It is evident that it is better to take a series of preventive actions to reduce the possibility of “hostile takeovers,” making your business too complicated a target for those seeking illegal enrichment at the expense of others’ property, rather than later dealing with the consequences of a raiding attack. Of course, implementing preventive measures to reduce the risk of raiding requires practical experience and systematic legal knowledge, so it is necessary to consult a qualified attorney for their implementation.
Moreover, professional legal assistance is essential when defending against active raider attacks, as in such cases, it is crucial to quickly develop a defense strategy against the raider attack and effectively implement the action plan.
Anti-raiding protection at WinnerLex Law Firm includes a wide range of services, including the following:
- Legal audit of business structure (Due Diligence) to identify potential risks and weak points vulnerable to raiding attacks, as well as the development and implementation of anti-raiding protection measures.
- Development of statutory and corporate documents that include preventive mechanisms against raiding.
- Restructuring of the business to minimize raiding attack risks.
- Creation of obligations between related friendly companies, based on which encumbrances on property and corporate rights are established.
- Active legal protection against raiding attacks by involving law enforcement agencies and challenging illegal actions both in court and out of court.
- Creating obligations between affiliated friendly companies, based on which encumbrances on assets and corporate rights are established.
- Active legal protection against raider attacks through the involvement of law enforcement agencies, challenging illegal actions in court and out-of-court proceedings.
Practice experience: 19 years
Specialization: litigation support, tax, customs and antitrust practices, agricultural law, IT and M&A
Practice experience: 21 years Specialization: support of economic, civil, labor and administrative disputes, energy
Practice experience: 11 years Specialization: tax, customs and corporate disputes, support of inspections, contractual activities
Practice experience: 6 years
Specialisation: business and civil law, tax and customs practice, corporate law, registration and reorganisation of business
Practice experience: 11 years Specialization: support of economic, civil, labor and administrative disputes, inspections
To reduce the risks of a raider attack, the company’s charter should include a clause specifying that only certain individuals (e.g., the director or founder) are authorized to initiate any registration actions on behalf of the company. Additionally, information regarding the restrictions on registration actions should be recorded in the Unified State Register of Legal Entities, Individuals–Entrepreneurs, and Public Associations.
If raider actions were carried out through registration actions, a complaint should be filed with the “anti-raider commission” at the Ministry of Justice (Commission for the Consideration of Complaints in the Field of State Registration).
In the event of a raider attack, file a criminal complaint with law enforcement authorities. During the investigation of your complaint, the investigator may seize forged documents and gather information about the individuals who organized or assisted in the execution of the raider attack. You will also need to request that measures be taken to preserve the company’s property, such as asset seizure through criminal proceedings.
Immediately challenge in court any agreements made by the raiders on behalf of your company. As part of this process, you must request interim measures, such as the prohibition of alienation of property and funds belonging to the company.
In the case of a raider attack, actively engage with the media. You should hold press conferences, publicize the criminal events, and highlight the resistance to the defense. Raise public awareness and shape the desired perception among society and government representatives regarding the raider attack. Demand punishment and the dismissal of individuals who assisted the raiders. With the support of shareholders and the workforce, organize protests and rallies. The goal is to attract attention to the raider attack and deprive the raiders of any support from government representatives.
To reduce the likelihood of a business being subject to a raiding attack, the following measures can be taken:
- Align the company’s corporate documents with current legislation.
- Establish a proper corporate governance structure.
- Conduct regular monitoring and analysis of information about the company’s assets and any ongoing lawsuits involving the business.
- Organize the system of information and document circulation and storage within the company.
- Secure legal assistance from a professional lawyer.
You have the right to address the consequences of a raiding attack and restore your rights through judicial proceedings. In particular, you can challenge contracts, registration actions in court, initiate the imposition of asset seizures within the court process, and request a ban on certain actions.
To protect against a raiding attack carried out through illegal registration actions, in addition to court proceedings, you can file a criminal complaint with law enforcement agencies and submit a complaint to the Commission for the consideration of complaints in the field of state registration.
To protect against a raider attack carried out through illegal registration actions, in addition to court proceedings, you can file a criminal complaint with law enforcement agencies and submit a complaint to the Commission for the consideration of complaints in the field of state registration.
