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Sorainen Successfully Represents Investment and Business Guarantees in Dispute with Lithuania's Ministry of Economy

Sorainen Successfully Represents Investment and Business Guarantees in Dispute with Lithuania's Ministry of Economy

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Sorainen has successfully represented former board members of Investment and Business Guarantees – a company subordinate to the Lithuanian Ministry of Economy ‒ in a case concerning a bonus payment to a former manager of the company.

Lithuania's Ministry of Economy brought an action against Investment and Business Guarantees’ decision to make the bonus payment to its former manager and claimed compensation for damage. The Vilnius City District Court decided in favor of the board members of the company, ruling that the decision by its board members to make the bonus payment of that particular amount was legitimate and based on an employment contract with its former manager as well as on the company's results.

“The court ruling unambiguously dispelled the ungrounded doubts shared in the public space by the former Minister of Economy regarding company board decisions," said Gediminas Norkunas, Investment and Business Guarantees' former interim board chairman, who was one of the defendants in the case. "The court ruling is also important because it fundamentally acknowledges the independence of the board members and their duty to act in accordance with company – and thus also state – interests, but not the interests of an individual politician."

Investment and Business Guarantees was represented by Sorainen Partner Zygimantas Pacevicius and Senior Associate Jurgita Karvele.

 

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