Generally speaking, wrongful trading is the special form of liability where a director of a company is liable for damages towards the creditors for the mismanagement of an insolvent company.
A special feature of the wrongful trading concept is that it may give rise not only to the liability of the director of the company but also to the liability of the director, management, employee of the parent company or even of the grandparent company (so called shadow director).
The pandemic and the related measures taken to restrict social contacts are challenging many businesses. We would like to draw your attention to the above special aspect of the situation: executives of foreign parent companies can potentially be held liable under the laws of Baltic/CEE/SEE countries for certain acts and decisions relating to their Baltic/CEE/SEE subsidiaries.
We have contributed to this overview of wrongful trading and the related measures within the Baltic, CEE and SEE region. Our lawyers have prepared information regarding the Baltic States and Belarus which we share with you. The entire overview covering nearly 20 countries can be found above on link.