ECHR Delivers Final Decision in Lekić Case

As a reminder – in our June issue of Legal Buzz we wrote on the entry into force of the Act on Interruption of Proceedings against Shareholders of Struck-off Companies (ZPPDID), which stipulates that with the day of entry into force of the act, all litigation, administrative and enforcement proceedings in which creditors allege claims against shareholders of struck-off companies shall be interrupted. The said claims arose out of former insolvency legislation based on which shareholders became responsible for debts of struck-off companies (the entire article is available here). 

With its judgment dated 11 December 2018, the Grand Chamber of the European Court of Human Rights (ECHR) decided that Slovenia has not violated Mr Lekić’s right to private property by striking off his company L.E. without prior liquidation and by holding Mr Lekić (as an active shareholder) personally responsible for debts of the struck-off company. The court explained that the struck-off procedure pursued a legitimate purpose and that given the circumstances of the case (including the fact that Mr Lekić was an active shareholder of the company) the striking-off of the company did not represent an excessive burden for Mr Lekić.

The judgement in the Lekić case is now final and the interrupted proceedings against shareholders of struck-off companies shall continue. The court has however not yet examined other lodged appeals in similar cases. It is thus possible that the court shall issue a different decision in other cases (primarily in cases of inactive shareholders).