Jurisdiction- ESTONIA

The Supreme Court declared void provisions of administrative court procedure applicable to situations when a Court of Appeal grants first-time permission to encumber an immovable in order to secure fulfilment of tax obligations. Positive law did not foresee a possibility to appeal the injunction. The Supreme Court ruled that such restriction of the right of appeal is unconstitutional and thus void. In the same ruling the Supreme Court stated that it is unproportional and thus ulawful to encumber immovable owned by a third person.

Jurisdiction – ESTONIA

Members of the management board have an obligation to submit a bankruptcy petition in case the company has become insolvent. For breach of this obligation, the law prescribes criminal liability. Accordingly, it is important how to determine when the company has become insolvent.