On 2 December 2010, the Minister of Economy of the Republic of Lithuania adopted Order No. 4-886 On the approval of the rules for the supervision of activity of a restructuring administrator (official gazette Valstybės Žinios, 2010, No. 143-7339) (hereinafter, the Order). The Order came into effect on 8 December 2010.
The Order provides that the activity of restructuring administrators will be supervised in the following areas:
(i) Consultation of administrators on the issues falling within the competence of the Department of Enterprise Bankruptcy Management under the Ministry of Economy (hereinafter, the Department) and performance of other preventive actions to preclude possible infringements of law. Consulting services include the following:
a) announcement of information about the application of legal acts regulating insolvency procedures on the website of the Department;
b) announcement of explanations, comments and case-law of competent authorities on insolvency issues on the website of the Department;
c) announcement of methodological recommendations, other information material to optimise administrators work on the website of the Department;
d) participation of representatives of the Department in seminars and making of reports on insolvency issues;
e) written consultation of an administrator on the application of legal acts regulating insolvency procedures upon written inquiry by the administrator.
If an administrator follows a written consultation approved by the Director of the Department or a person authorised by the latter or a publicly available consultation, which is recognised as inconsistent with statutory requirements (misleading) by a further consultation or other individual administrative act or a court decision, no measures of effect (sanctions) shall apply to the administrator for improper implementation of legal acts resulting from the misleading consultation (this clause shall not apply where legal regulation has been amended after the respective consultation; the administrator has been notified about the misleading consultation or had other real possibility to obtain the respective information; if measures of effect (sanctions) are indispensable and necessary to prevent damage to the public or the interests of other persons or the environment; if the law provides that compliance with a misleading consultation should be considered as a circumstance attenuating the administrators liability when imposing and (or) applying measures of effect (sanctions)).
(ii) Planned and unplanned inspections of administrators activities. Prior to the beginning of a planned inspection of activities of an administrator, the Department, no later than 10 business days before a planned inspection, shall notify the administrator in writing or by e-mail about the planned inspection, indicate the ground, term, subject matter of the intended inspection and provide a preliminary list of documents to be presented by the administrator to the Department. The administrator may be inspected no earlier than six months after the day of authorisation to provide the services of an administrator of restructuring of enterprises. No measures of effect (sanctions) will be applied for the infringements established during the inspection of the administrators activity for his or her first year of operation. Generally, in the planned inspection of the administrators activity, the duties of the administrator laid down in the Law of the Republic of Lithuania on Restructuring of Enterprises are checked. Unplanned inspections may be carried out upon receipt of reasoned requests or assignments;
(iii) Evaluation of information about administrators activities collected during monitoring;
(iv) Imposition of measures of effect (sanctions) on administrators in compliance with the procedure prescribed by the Law of the Republic of Lithuania on Restructuring of Enterprises and the Order.