Our team has represented individual members of the board of a company in a damage litigation case. A creditor of the company submitted a claim against the clients and demanded that they cover alleged damages, arguing that the company had become insolvent as a result of the clients’ breach of fiduciary duties. The case has been returned to the Court of Appeal by the Supreme Court of Lithuania to examine the arguments set forth by the parties in more detail.
The resolution of this case is of importance to the interpretations of the responsibility of the members of the board of a company. According to a new precedent set in this case, for instance, the fact that a company is solvent in accordance to the bankruptcy law does not prove that the management of the company acted in line with the interests of the shareholders.