Oleksandr Tananakin, an attorney at Barristers Law Firm, spoke to participants in a special course for corporate lawyers about the status of legal entities in criminal proceedings. According to him, prior to the amendments to the procedural codes, a legal entity had virtually no rights when criminal proceedings were initiated against it, which allowed investigative authorities to carry out any procedural and investigative actions—such as searches, unscheduled inspections, and temporary access to documents. At the same time, investigators would respond to attorneys’ requests with form letters at best.

There was a practice whereby all business partners of a legal entity whose director was accused of fictitious entrepreneurship under Article 205 of the Criminal Code of Ukraine were listed as potential criminals. This state of affairs negatively affected the operations of legal entities and reduced their competitiveness as potential business partners. According to the lecturer, in many countries, a legal entity is not deprived of its rights in the criminal justice system, and there are only five or six countries worldwide that have not addressed this imbalance. Ukraine has also made the necessary amendments to its national legislation.

What status can a legal entity have in criminal proceedings? It can be a victim; furthermore, charges may be brought against a legal entity when its management acts in the interests of that legal entity. According to the lecturer, there is still insufficient practice of punishing legal entities, although there have been cases where branches of a legal entity were closed or its activities were prohibited.

The lecturer noted that while in developed countries a company’s high profile serves as a kind of “get-out-of-jail-free card” against police arbitrariness, in the Ukrainian context, a company’s popularity makes it an attractive target for law enforcement. There is even a grim joke that “a search is a sign of success in business.”

A lawyer is typically retained to represent a legal entity in court. It is important, however, to select a specialist in the relevant area of law to defend the legal entity’s rights, as there are no “universal” lawyers. For example, a lawyer who has a thorough understanding of business processes may be completely at a loss in criminal proceedings, which require not only specialized knowledge but also experience.

The lecturer offered advice on formalizing the relationship between a lawyer and a legal entity, emphasizing that a legal services agreement can be concluded within three days of engaging the lawyer to defend the client’s interests. He also noted that since law enforcement agencies typically arrive in groups to conduct searches, it is not easy for a single attorney to confront them; therefore, it is advisable to engage not just one attorney but a law firm with an appropriate staff of experienced lawyers to defend the legal entity.