The Judgment in the First Kriptonika Case Has Become Final

Vilnius Regional Court has adopted an order in the case that was the starting point of legal disputes between the company Universalios Valdymo Sistemos (UVS) selling cash registers and Penki Kontinentai (PK), one of the largest IT companies in Lithuania.

UVS and PK set up a joint private limited liability company UAB Kriptonika that was to develop and install different kinds of software. The then head of UVS Andrejus Sviridovas was appointed the director of the company, the shares of which were equally divided between its founders.

The court found out that in 2004 A. Sviridovas, acting illegally, changed and registered a new version of the articles of association of UAB Kriptonika in the register of legal entities, which enabled him to dispose of all the property of Kriptonika in his sole capacity without the knowledge and consent of PK.

A. Sviridovas used that opportunity in 2005 when he sold hardware of considerable value belonging to Kriptonika that was required for pursuing the principal activity of the company. Furthermore, A. Sviridovas intended to sell the real estate belonging to the company as well and its price was even higher.

When PK found out about the illegal actions of A. Sviridovas related to the amendment of the articles of association of UAB Kriptonika and the threat to the interests of the shareholders related therewith, it applied to court.

The court of the first instance upheld the action of PK and found the articles of association, which were arbitrarily signed and registered by A. Sviridovas, invalid. UVS and A. Sviridovas appealed against that judgment; however, Vilnius Regional Court, having regard to the interpretations of the Supreme Court of Lithuania, upheld the judgment of the court of the first instance.

“We value this order positively. It confirmed that the head of UVS A. Sviridovas acted in bad faith in regard to his partner PK. No such conflict would have arisen in the absence of the actions on the part of A. Sviridovas”, – the advocate of PK Mr. Viktoras Lavrinovicius said.

According to him, the order of Vilnius Regional Court, executable from the date of its adoption, will be an important argument in other cases where actions of A. Sviridovas and other natural and legal persons related to UVS are being disputed.

Furthermore, according to the media, UVS, which is responsible for the maintenance of cash registers of well-known retail trade undertakings, has also encountered problems with the State Tax Inspectorate. According to the information that has not been confirmed yet, this company could have concealed a considerable amount of the value added tax from the state upon purchasing fictitious services.