Following the judgment made on 7 June 2016 by the Civil Matters Department of the Supreme Court, Republic of Latvia in matter No. SKC-7\/2016, the case-law pertaining to liability of a board member was changed, recognizing that in the event of insolvency of a company, losses for which a board member must bear the responsibility if he or she has failed to act as a honest and careful manager, are also composed of the increased liabilities, including the amount of money calculated by the State Revenue Service and to be paid into the State budget.<\/p>\n
With the aforementioned judgment, the Civil Matters Department abandoned the previous case-law in accordance with which a board member did not have to bear responsibility for liabilities established as a result of his or her violations, if the company had not paid for the said liabilities. To provide grounds for the abandonment of the previous case-law, the Civil Matters Department referred to article \u201cLiability of a board member for failure to lodge an insolvency application in good time\u201d written by sworn advocate Evija Novicane, a partner of law office NOVIUS. \u201cJurista V\u0101rds\u201d, 28 January 2014, No. 4(806).<\/p>\n