Lithuania's Ministry of Finance has discussed proposed amendments to the Law on Insolvency of Legal Entities with the Chamber of Insolvency Administrators, the Lithuanian Banking Association and the Authority of Audit, Accounting, Property Valuation and Insolvency Management. The proposals would tighten impartiality requirements for insolvency administrators, add safeguards against conflicts of interest, clarify the treatment of transactions with related persons and strengthen creditor control in insolvency proceedings. A central proposal would bar an insolvency administrator from working for more than one legal entity, which the ministry said would reduce bias and conflict risks and make the selection process more transparent. Other changes under discussion include a broader sanctions framework for infringements, including financial penalties, stronger supervision of the Chamber of Insolvency Administrators, creditor rights to oversee transactions with related persons, electronic voting at creditors' meetings, wider use of digital solutions and a revised procedure for settling claims with collateral holders. The draft law is currently being considered by Parliament.

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