One might think that the board has complete discretion in deciding how to solve the company\u2019s financial problems. Everyone has to find their own path, as one might even say. However, it should be kept in mind that the Insolvency Law does not allow not to lodge an application of insolvency proceedings in cases when there are present any of the insolvency indicators specified by the Law. Instead, the Law states that such submission in these cases is mandatory, the sole exemption being cases when the company can come to an agreement with judgment creditors regarding initiation of legal protection proceedings. In this regard, the past suggests that legal protection proceedings are a tool which, when used skilfully, helps the company to avoid insolvency or to successfully leave the state of insolvency. Whereas prolonged increase of the company\u2019s debts and ineffective way of solving financial issues can unpleasantly threaten the board member\u2019s financial state.<\/p>\n