Lithuanian Court of Appeal ruling on abuse of CEO’s powers

Due to our unparalleled expertise, we emerged triumphant in the recent case that took place in the Lithuanian Court of Appeal addressing the manager’s abuse of power and misconduct at a company, showcasing our extensive experience in shareholder derivative actions.

Shareholders typically distance themselves from daily company operations, resulting in a lack of detailed information on the company’s documents, especially when the manager neglects financial reporting and isolates other shareholders. This, in turn, complicates the assessment of violations and damages during a claim submission, underscoring the crucial role of dynamic case management.

⚖️CONFIDENCE Law Office Attorney Evelina Trukšinienė and colleague David Gurvič effectively presented the case in court, demonstrating how the manager misused company funds and sold assets below market prices, inflicting damage upon the company. Despite the initial dismissal of the claim based on formalistic evidence examination, our unwavering efforts ultimately secured a significant victory in the Lithuanian Court of Appeal, resulting in damages awarded under the manager’s civil liability, totaling 130,000 EUR.

For those grappling with manager-shareholder disputes, Confidence Law Office stands ready to provide expert assistance.