How to protect your business from raiding

Raiding - This is not just a problem for large corporations. Today, farmers, small businesses, IT companies, and real estate owners are becoming victims of raider attacks. In this article, we'll look at the main forms of raiding, the signs of a threat, and effective steps to help protect your business.

What is raiding?

Raiding is the illegal seizure of a company or property using legal, administrative, judicial or forceful instruments. The raider's goal is to gain control of the company, its assets or profits.

Raiding is often disguised as legitimate actions: a change of management, a court decision, a change in the register, or enforcement proceedings. However, in most cases, this is based on forgery of documents, pressure on registrars, agreements with judges, or forceful intervention.

Common forms of raider attacks

1. Forgery of corporate documents - False minutes of meetings, decisions to change the manager, participants.

2. Change of registration data - through abuse of access to registers or bribery of the state registrar.

3. Fictitious debts and enforcement proceedings - creation of artificial debt, seizure and sale of property.

4. Court decisions involving fictitious persons - claims from fictitious creditors or "buyers".

5. Power grip - blocking access, protecting raiders, removing equipment or documents.

How to recognize that your business is under threat

Pay attention to the following signs:

• third parties request copies of your charter documents;

• suspicious requests to the state registry appear;

• in the register of court decisions - claims against your company that you did not know about;

• attempts to enter the premises or remove property without a court order;

• changes in the USR without your knowledge.

How to protect your business from raiding

1. 1. Protect the corporate structure

• Regularly update your constituent documents.

• Write in the charter the procedure for convening a meeting, changing the manager, and alienating shares.

• Avoid nominee directors and shareholders.

• Record all agreements between co-owners in a corporate agreement.

2. Control registration data

• Check the extract from the USR regularly.

• Connect the monitoring of changes through the services of the Ministry of Justice or lawyers.

• Apply the mechanism registration burden - prohibition of changes without notarization.

3. Create an internal security system

• Restrict access to financial and legal documents.

• Install video surveillance and security in your office and facilities.

• Control the work of an accountant, HR specialist, and lawyer.

4. Work with a professional lawyer

• Regular legal diagnostics of the company is the best risk prevention.

• A corporate security lawyer will help you respond to threats in a timely manner.

• In the event of an attempted seizure, he will immediately prepare an appeal to the court, the Ministry of Justice, and law enforcement.

5. Respond to the first symptoms

• In case of changes in the register, file a complaint with the Ministry of Justice (Commission for Review of Complaints in the Field of State Registration).

• File a criminal complaint under Art. 205-1 or 206-2 of the Criminal Code of Ukraine.

• Block illegal enforcement proceedings in court.

• Initiate an interim remedy to regain control of the company.

Additional security tools

• CES (electronic signature key) authentication - Do not pass the key to third parties.

• Using NDAs with employees - restriction of information disclosure.

• Backup of important documents - in case of loss or seizure of the office.

Conclusions.

Raiding is a real threat to business in Ukraine. But timely action, proper company structure and legal support can minimize the risks. Don't wait until the threat becomes a fact. Legal prevention is the best investment in the security of your business.