RESPONSIBILITY OF THE DIRECTOR OF THE LEGAL ENTITY: RESTRICTION OF THE RIGHT TO HOLD THE POSITION OF A DIRECTOR

Abstract

This article analyzes the problems of the imposition of liability on a director of a legal entity. The essence and objectives of the restriction of the right to hold the position of a director of a public and (or) private legal entity or to be a member of a collegial management body are examined according to the doctrines of international law and the case law of Lithuanian courts. The content of restriction of the right to hold the position of a director of a legal entity is revealed by analyzing the legal regulation of Lithuania, which establishes the basis of imposition of liability on a director of a legal entity and some peculiarities which should be considered in each individual case. Analysis of the procedure for imposition of liability of holding the position of a director reveals significant inconsistencies between the Law on Legal Entities of the Republic of Lithuania and the Code of Civil Procedure of the Republic of Lithuania. This article also analyses whether the meeting of creditors as a governing body has the right of apply to the court to commence the procedure of imposition of a sanction on a director of a legal entity. Focus is also placed on the relationship between said sanction established in the Law on Insolvency of Legal Entities of the Republic of Lithuania and the sanctions established in Article 120 of the Code of Administrative Offenses of the Republic of Lithuania.