The Estonian Supreme Court granted an appeal in cassation filed by the Tax and Customs Board in a dispute concerning the liability of board members. In its judgment, the court has expressed its opinion on a number of important issues related to the liability of board members to the company’s creditors.
If a board member fails to comply with the obligation to file for bankruptcy in the case of permanent insolvency of a private limited company, the Tax and Customs Board may submit a claim arising from the decrease in the value of a tax claim also under the civil law. So far the tax authority has preferred to use administrative liability proceedings to enforce its claims.