Acquiring a business presents not only opportunities but also hidden risks that may manifest years later.
One of Kosovan Legal Group’s recent cases serves as a clear illustration of this: a non-resident company, which sold corporate rights to our client back in 2021, suddenly claimed to have no knowledge of the transaction and asserted that the power of attorney for the sale was never issued.
The situation was particularly complex because the company acquired by our client holds the right to use a valuable land plot located near a popular highway.
We conducted an in-depth analysis and established that the selling company no longer exists in the registry of its jurisdiction, and its legal capacity is questionable. Despite this, the court required additional evidence. Through a strategic approach, we succeeded in achieving an indisputable victory and protecting the client’s interests.
How can you protect yourself from similar situations? Anatoliy Kosovan, Managing Partner of Kosovan Legal Group, shares the most important aspects to consider:
• When concluding the deal, obtain official confirmations and approvals from the seller.
• Retain all documents related to the transaction, including payment confirmations.
• Conclude written sale and purchase agreements, even if not mandatory for registration.
• Legalize documents provided by the seller, regardless of the requirements of the registrar or notary. (Self-correction: “Legalize” is the correct term for Apostille/Consular processes often required for foreign documents)
• Take care to preserve originals or properly certified copies of all documents confirming the seller’s legal capacity, the identity of the director, and the shareholders who approved the transaction.
If your business or transaction is under threat, do not postpone the decision — seek consultation from Kosovan Legal Group. We will help protect your assets and preserve your confidence in the future.