Who are "raiders"? Raiders are people who, using imperfect in legislation or completely illegal methods, gain control over someone else's property, including business, or actually become its owners.

Real estate is often the object of raiding. Moreover, its "seizure" can be carried out both directly - by registering the rights to the relevant object and through the change of founders of the legal entity that owns a particular property.

Here are some schemes and recommendations to help prevent raider attacks, protect your business, and minimize risks.

Carrying out registration actions through "black" registrar

State registrars often conspire with raiders and carry out registration actions in the absence of appropriate legal basis.

A huge number of raids on corporate rights and illegal registration actions on real estate were carried out through state registrars-accredited entities, in some cases without any document. Practice has shown the impossibility of timely and effective control over such entities by the Ministry of Justice of Ukraine.

Because of the large number of unscrupulous ("black") state registrars that they were deprived of authority in this area by the "anti-raider" Law of 03.10.2019 № 159-IX (acting from 02.11.2019, hereinafter - the Law).

However, such a deprivation of authority does not mean the automatic elimination of the entire state registration system. There are still cases when state registrars and notaries are blocked from accessing registers due to violations of the law.

The website of the Ministry of Justice of Ukraine contains a list of registrars and notaries who have been blocked or disabled from accessing the registers for violations.

Therefore, before applying, be sure to check the presence of a state registrar or notary in the list

Registration on the basis of fake power of attorney

Previously, the submission of documents for state registration on behalf of a legal entity could be carried out on the basis of a power of attorney in a simple written form. It was not necessary for legal entities to use the seal, so it was quite easy to fake such a power of attorney. Moreover, making a seal is also was not a problem.

However, the Law requires a notarized power of attorney to submit documents to the state registrar, which minimizes the risk of forgery; the validity of such a power of attorney (if it is issued in Ukraine) will be verified using the Unified Register of Powers of Attorney, which complicates the possibility of using this scheme.

The law introduced an additional obligation for the state registrar - to check the capacity of individuals and legal entities, as well as the authority of the representative.

State registration of real estate on the basis of a fake court decision

One of the most popular schemes of raider seizures used to be the state registration of real estate on the basis of a forged court decision, which is not in the Unified State Register of Court Decisions.

The law introduces an automatic registration procedure based on court decisions and carried out independently by the registrar (in the absence of the applicant's application) as soon as the relevant court decision appears in the Unified State Register of Court Decisions.

These changes will prevent attempts to seize real estate in this way.

However, in case of failure of the register for some time, the state registrar will not be able to carry out the registration action..

That is why it is necessary to check whether changes were made to the relevant register on the basis of a court decision.

Transmission of documents through a chain of several registrars

A common scheme of raiding was the transmission of documents through a chain of several registrars, when illegal registration actions are committed in the end, but violations of the order occurred in the first stages (which significantly complicated the appeal of such registration)..

The law establishes the principle of simultaneous notarial acts and state registration of rights. It will be impossible to implement such a scheme if the entry in the register is made immediately after the notarization. However, this provision does not apply to joint stock companies, limited and additional liability companies, which still leaves place for action for raiders.

After the adoption of the "anti-raider" law, the situation has improved, but the risk remains. Therefore, you should always be alert.

It is important to check information about your property or company. There are many services that provide such opportunities, even without the need to put extra effort.

For example, the «Opendatabot» registration data monitoring service allows you to subscribe to a specific company and monitor changes that occur with it, including changes in the composition of the founders and the size of their shares.

Similar services, mostly on a paid basis, are provided by other companies. And therefore it is possible to pick up the most convenient service.

Equally important is making early contact with qualified lawyers. This will allow you to react quickly if any of the above situations occur.

29 DECEMBER 2020

By: Andrii Kavchuk
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