After 4 years of intensive litigation, where contentious matter was twice considered both in the lower court and the Court of Appeals, SPC legal team has finally proved that bankruptcy of the company was not entailed by willful actions of its director. A shareholder of the company was determined to prove different and that director’s actions aimed at bringing the company to insolvency and bankruptcy. The dispute was twice considered by the Court of Appeals and in its second (and final) resolution the court emphasized that willful bankruptcy of the company has significant consequences over the persons who are responsible for it, therefore the bankruptcy may only be considered as willful if there are no reasonable doubts that management acted willfully and their actions resulted to bankruptcy or material deterioration of the insolvent company’s assets. The Court of Appeals took into account and upheld the position, legal arguments, and analysis of evidence submitted by SPC legal, and finally determined that director’s actions have no indication of being willful and directed at insolvency of the company. Demands presented by the company’s shareholder were fully dismissed.
Our services: drafting court documents, representation at the hearings.
Team involved: Eglė Valiulienė