Corporate rights during wartime: is the state ready for restitution and compensation?

During martial law, the state has the right to forcibly expropriate corporate rights and other property to meet national security and defense needs. A pressing question arises: What mechanisms does current legislation provide for the compensation and return of such property after martial law ends?

In a special analytical article, Andriy Nikitin, partner at EQUITY and Chairman of the Ukrainian Advocates’ Association Committee on Corporate Law and M&A, analyzes:

• the legal grounds for compensation to former owners;
• the shortcomings of the current compensation procedure and the risks of abuse;
• the lack of an effective mechanism for returning property;
• a comparative analysis with European practice;
• the fiduciary duties of the state in the process of compulsory seizure of property.