The daily Respublika interviewed Auditor General Giedre Svediene over bankruptcy process in Lithuania.
"Heads of companies are liable for not initiating bankruptcy procedures on time, they may be prevented from holding managerial positions from 3 to 5 years. Moreover, creditors have a right to recover damages due to bankruptcy being initiated too late. However, such penalties are very rarely imposed, even though they are established by law, because it is not the courts' duty to recover damages and creditors' initiative is lacking. Therefore, we propose that courts would be obligated to determine whether bankruptcy is initiated on time and take disciplinary action if they are not," said Svediene.
