Criminal Cases in Corporate Conflicts

A criminal complaint may accompany a dispute over transactions, resolutions of management bodies, corporate control or the disposal of assets. The mere existence of a complaint does not confirm that a crime was committed. At the same time, the civil law nature of a relationship does not exclude a criminal law assessment of particular actions. To prepare the position, it is established what actually happened, who took the decisions and what materials confirm this.

Losses suffered by the company, the absence of approval of a transaction or disagreements with the director are not in themselves sufficient to conclude that a crime has been committed. In assessing possible abuse of authority, the powers and actions of the specific person, their purpose, their consequences and the other elements of the offence provided for by law are examined. Information about forgery of documents or unlawful disposal of property is also assessed separately.

For certain offences against the interests of service in commercial and other organizations, including abuse of authority, a special procedure for instituting criminal proceedings is provided for: upon a complaint by the head of the organization or with their consent.

Resolution of the corporate dispute itself falls under the “Corporate Disputes and Conflicts” service.

• Assessment of the situationAnalysis of the available information on the complaint, its connection with the corporate dispute and the circumstances that require confirmation or further clarification.
• Position on the complaintPrepared arguments, draft explanations and a set of documents for submission in accordance with the established procedure.
• Applications concerning attachment and seizureLegal assessment of the attachment and seizure of property, and objections, motions and appeals prepared where there are grounds.
• Criminal complaintAssessment of the grounds for a complaint by the company, and preparation of the complaint and its annexes if this course of action suits the circumstances.
• Analysis of parallel proceedingsReview of positions previously stated, discrepancies identified and the possible significance of court rulings for the investigation.
• Participation in the caseLegal assistance while the crime report is considered, during the investigation and in court, and explanation of the decisions taken and possible further steps.

The outcome of the service is the work performed within the scope agreed with the client.

1. Materials

   The position is built on the documents and the circumstances of the case; the following points are relevant.

   • Parties to the conflictParticipants, shareholders, executives and their roles in the company.
   • Corporate documentsThe charter, the corporate agreement, resolutions of management bodies and extracts from registers.
   • Disputed transactions and operationsContracts, approval documents, accounting and payment documents, correspondence.
   • Parallel proceedingsInformation on corporate and other disputes in the commercial (arbitrazh) courts, any bankruptcy case, court rulings issued and appeals filed.
   • Documents receivedNotices, requests, orders, records, and information on property seized and restrictions imposed.
   • Details of the complaintWho filed it and when, what circumstances it sets out and what is known about the outcome of its consideration.
   • Upcoming deadlinesScheduled procedural actions, hearings and time limits for appeals.
   • Formalizing the engagementInformation needed to identify the client, assess authority to act on behalf of the company, check for a possible conflict of interest and enter into an engagement agreement with the advocate.

2. Assessment

   On the basis of the materials, the strengths and weaknesses of the position, the risks and the possible courses of action are identified.

3. Plan

   For the chosen option, a plan is drawn up: the sequence of steps, timing and scope of work.