Lithuanian legal system provides for an opportunity to secure that debtor's assets are properly disposed and not dissipated. This can be relevant for claimants, when they think that a company or its assess are improperly managed, and the current administration would reduce the value of such assets (for example, the funds can be paid out to certain sub-contractors when no sub-contracting or servicing is necessary, the salaries can be unreasonably increased, etc.).
Alternatively, it is also possible to make a petition to the court and get an authorization for a corporate investigation that will deal with the questions whether the company was properly administered.
We assist our clients who are concerned about management of the companies and the fact that the assets of such companies can be dissipated or misappropriated. In particular, we assist our clients by drafting petitions to the court for:
Knowledge & Insights
Supervision of debtor's assets
A claimant may apply to the Lithuanian court with a request to appoint an administrator to supervise that the defendant's assets are preserved and not dissipated. This measure can be applied when there is a proprietary dispute between parties, and the administrator will make best endeavours that the court ruling would be enforced. The administrator is entitled to dispose assets of that company, for example, to sell, invest, mortgage, or change the supposed use of such assets.
Court-appointed corporate investigation
By enacting a new version of the Civil Code as of 2000, Lithuania has taken over the Dutch model permitting a shareholder or a group of shareholders to apply to the court in order to cure the infringements made in the corporate activity. Contrary to the common law countries, such applications for corporate investigations in Lithuania must be specific. In particular, this means that the application has to explain what exact activity of that company was inappropriate and why it was inappropriate. A corporate investigation can be initiated by the following persons:
The initiators of the investigation shall have a right to suggest experts to the court who would investigate whether a legal person or its managing bodies acted properly. In the event, when the appointed experts report on the infringements of corporate activity, the court may apply one of the following measures:
Šulija Partners Law Firm Vilnius, registered office Jogailos street 4, 3rd floor, Vilnius, LT-01116, Lithuania, fax +370 52051926, e-mail: info@SulijaPartners.com
© 2008 - 2018, Šulija Partners Law Firm Vilnius. All rights reserved. The contents of this website and all information contained therein is protected under the laws of the Republic of Lithuania and applicable international agreements. The information contained on this website may not be copied, shared or reproduced or published without the written permission of Šulija Partners Law Firm Vilnius.