TEISMO VAIDMUO JURIDINIŲ ASMENŲ NEMOKUMO PROCESE
THE ROLE OF COURTS IN CORPORATE INSOLVENCY PROCEEDINGS

Summary/Abstract: This article analyses the role of courts in corporate insolvency proceedings. In the last few decades the case law has established that courts play an active role in such cases in Lithuania. The Law on Corporate Insolvency which was adopted on 13 June 2019 incorporated this case law and establishes that courts shall be active in corporate insolvency proceedings, ensure effectiveness of such cases and protect public interest. The article examines what are the economic and legal reasons which justify the active role of courts in corporate insolvency proceedings and examines the legal regulation of corporate insolvency in foreign states (Germany, France).Also, the authors assess how the active of role of courts in corporate insolvency proceedings is compatible with the fundamental principles of civil proceedings (equality of the parties, adversarial principle). The laws on corporate insolvency proceedings do not address this question. Even courts shall be active in such cases, the main principles of civil proceedings must be applicable. Furthermore, the authors analyse how courts shall ensure effectiveness of corporate insolvency proceedings: collect evidence, control participants of the corporate insolvency proceedings. The authors also consider whether the relevant case law regarding the active role of courts in corporate insolvency proceedings which had been formed until the adoption of the new Law of Corporate Insolvency should be still applicable.

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