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Amended Companies Law Proposed - International Law Office

International Law Office

Company & Commercial - Lithuania

Amended Companies Law Proposed

September 08 2003

The Ministry of Economy recently announced a proposal to amend the Law on Companies. The first article of the amended law states that its provisions are compatible with the relevant EU regulations. The draft contains the following new provisions:

  • The legal status of a private limited liability company shall not depend on the number of shareholders (at present the number of the shareholders of such companies is limited to 100);

  • New date requirements for the inclusion of company data in the Companies Register;

  • Agreements between a company and its sole shareholder may be in simple written form, except where the Civil Code requires notarial form;

  • The shareholders of a public company may demand a compulsory sale of shares held by other shareholders, or a compulsory purchase of their shares by other shareholders, in circumstances provided by the Securities Market Law; and

  • A shareholder's right to vote in the general shareholders meetings may not be revoked or limited, except where ownership of the share is disputed.

In addition, the draft includes regulations on the establishment and liquidation of branches of foreign companies.

The proposed date of entry into force is January 1 2004.

For further information on this topic please contact Nerijus Jurkus at Jurevicius, Balciunas & Partners by telephone (+37 0 5 2742 256) or by fax (+370 5 2742 444) or by email (nerijus.jurkus@lt.ey.com).

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