Bad faith acts by a member of a legal entity – is it possible for a creditor to recover the debts?

Nov 11, 2009
By Zydrune Stuglyte [Jurevicius, Bartkus & Partners]

In the presence of a complex economic situation, the tendency to escape payment of debts can be observed. Such avoidance is exercised by using illegal means, for instance by establishing new companies and transferring activities, assets and funds, in order to leave the primary entity holding the outstanding debts. Article 2.50 (3) of the Civil Code of the Republic of Lithuania states: where a legal person fails to perform his obligations due to acts  in bad faith of a member of the leg ...

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