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Newsletter 2009 June

  • Lithuania

    03-07-2009

    Finance Law

    The Rules on Issuance of Licences for Financial Brokerage Firms and
    the Rules on Issuance, Revocation and Modification of the Operating
    Licence of a Management Company and an Investment Company
    have
    been amended and supplemented

    On 30 April 2009 the Securities Commission has amended and supplemented
    the Rules on Issuance of Licences for Financial Brokerage Firms and the Rules
    on Issuance, Revocation and Modification of the Operating Licence of a
    Management Company and an Investment Company
    adopted on 14 March
    2008 and the Rules on the Issue of a Financial Brokerage Firm Licence
    adopted on 30 October 2007.

    The amendments and supplements establish the list of documents and
    information necessary for the evaluation of the acquirer and the proposed
    acquisition which have to be submitted to the Securities Commission together
    with the notification about the proposed acquisition of the qualifying holding
    in a management company or a financial brokerage firm. The amendments of
    the Rules implement the Law on Collective Investment Undertakings and the
    Law on Markets in Financial Instruments
    amended on 19 March 2009.

    The Rules abolish the standard forms effective until now which had to be
    submitted in order to obtain the licence. The Rules indicate a more detailed
    list of information to be submitted. From now on for the obtaining of the
    licence as well as for the acquisition of the qualifying holding a curriculum
    vitae, description of professional activities, information on the carried out
    investigations and the imposed sanctions, description of interest and relations
    with the current shareholders, managers or the group of undertakings must
    be submitted. It is also required to submit the financial reports of the
    companies managed or controlled by the acquirer. A legal entity must submit
    the financial reports for 3 financial years (instead of 1 year previously).

    The Rules establish the additional requirements depending on the amount of
    shares acquired. If the acquirer owns more than 50 percent of shares, the
    programme of activities (business plan) and the predicted financial reports
    for 3 years have to be submitted. If the acquirer owns from 20 to 50 percent
    of shares, the information on the duration of the planned qualifying holding
    to be kept has to be submitted provided in case of difficulties the company
    may be funded from personal resources.

    The Law on Markets in Financial Instruments indicates that a financial
    brokerage firm can be restructured only after a prior approval from the
    Securities Commission is obtained. The new wording of the Rules establishes
    the procedure to obtain the approval.

    The amendments and supplements have come into force as from 15 May
    2009.

    Insurance Law

    The Guidelines for Insurance and Insurance Brokerage Firms
    regarding the Prevention of Money Laundering and (or) Terrorist
    Financing
    have been amended

    On 19 May 2009 the Insurance Supervisory Commission has adopted the
    resolution, amending The Guidelines for Insurance and Insurance Brokerage
    Firms regarding the Prevention of Money Laundering and (or) Terrorist
    Financing
    .

    The resolution harmonises the Rules with the Law on Prevention of Money
    Laundering and (or) Terrorist Financing
    and with the other resolutions of the
    Government regulating the mentioned area.

    According to the previously effective wording of the Rules, the insurance
    firms and insurance brokerage firms, which received the order from the
    Financial Crime Investigation Service to stop the suspicious or unusual
    monetary operations performed by the client, were able to stop the operation
    for up to 48 hours. The Law establishes the term of 5 days, therefore the
    Rules have been amended accordingly. When harmonising the Rules with the
    Law, the procedures of the identification of the beneficiary, as well as the
    simplified and enhanced procedures of the identification of the clients were
    specified.

    The amendments and supplements have come into force as from 31 May
    2009.

    Legal Status of Aliens

    The legal acts regulating the staying of the citizens of the European
    Union and their family members in the Republic of Lithuania have
    been amended

    On 30 April 2009 the Minister of Interior has amended The Description on the
    Procedure of Issue of the Certificate Proving the Right of Residence in the
    Republic of Lithuania of the National of a Member State of the European
    Union and on the Procedure of Issue, Renewal and Cancellation of a
    Lithuanian Residence Permit of Family Members of the National of a Member
    State of the European Union, Issued to Family Members of the National of a
    Member State of the European Union, and the Rules on Issue of Permits of
    Permanent Resident to Reside in the European Community to Aliens and
    Evaluation of Entering into Fictitious Marriage, Fictitious Registered
    Partnership and Fictitious Adoption
    .

    The new wordings of the Rules determine in detail the institutions to which
    one should apply for the issue of certificates proving the right of residence or
    of permanent residence in the Republic of Lithuania.

    According to the previously effective regulations, the applications (to receive
    the certificate proving the right of residence or the permanent residence
    permit in the Republic of Lithuania) had to be complemented by the
    document, confirming the payment of the state levy. From now on it is
    enough to confirm that one is aware of the consequences of non-payment of
    the levy, i.e. if the state levy is not paid the certificate or the residence
    permit shall not be issued or the application of the alien to issue residence
    permit shall not be examined and shall be terminated without notice.
    Provided the levy for the formalisation of the permanent residence permit is
    not paid, the documents are to be accepted, but the permit itself shall be
    issued only when the levy is paid.

    The amendments have come into force as from 9 May 2009.

    The Rules on Issue of Temporary Residence Permits in the Republic
    of Lithuania have been amended

    On 28 May 2009 the Rules on Issue of Temporary Residence Permits in the
    Republic of Lithuania for Aliens and on Evaluation of Entering into Fictitious
    Marriage, Fictitious Registered Partnership and Fictitious Adoption
    have been
    amended by the order of the Minister of Interior.

    The Rules have been stated in a new wording in order to harmonise the
    provisions of the Rules with the provisions of the Law on the Legal Status of
    Aliens and of other legal acts, to harmonise the provisions of the Rules
    among themselves and to eliminate the inaccuracies. The Rules regulate the
    procedure of the submission of documents when applying for the temporary
    residence permit in the Republic of Lithuania, the issue, change and
    cancellation of the temporary residence permits, the submission and
    acceptance of the application for the issue of the temporary residence permit
    and other annexed documents, the order of evaluation whether the marriage
    or the agreement on registered partnership has been concluded or if the child
    has been adopted by the alien for the purpose of obtaining the temporary
    residence permit; the Rules also establish the procedure of the adoption of
    the decision to issue or change the temporary residence permit, the
    submission and acceptance of the documents for the formalisation of the
    temporary residence permit and regulates other issues related to the
    temporary residence permit in the Republic of Lithuania.

    The new wording of the Rules has come into force as from 29 May 2009.

    Dispute Resolution

    The Description of the Order of Making the List of Arbitrators and
    Mediators
    has been approved

    On 6 May 2009 The Description of the Order of Making the List of Arbitrators
    and Mediators
    approved by the general meeting of the members of the
    Lithuanian Arbitration Association has come into force.

    The Description, approved following the Law on Commercial Arbitration,
    establishes the order of inclusion into the list of arbitrators or into the list of
    mediators, both recommended by the Lithuanian Arbitration Association, also
    defines special status of arbitrators and mediators when solving disputes
    between entities in non-judicial way, establishes qualification requirements
    for persons, willing and/or recommended to be included into the mentioned
    lists and regulates other issues related to the order of inclusion into the
    mentioned lists.

    The Description determines the qualifications for inclusion into the list of
    arbitrators (mediators): the specialists-practitioners of law and business
    related professions (managers, administrators, economists, technologists,
    etc.), who are able to professionally solve disputes arising in different areas
    of business, being recommended by the Lithuanian Arbitration Association.
    The priority shall be granted to the persons recommended by business
    associations, councils of attorneys or other lawyers, science and educational
    institutions and other non-profit institutions.

    The Description also establishes the qualification requirements: person must
    possess a diploma in law, administration, economics or other social science,
    have professional experience in any business area, demonstrate knowledge
    on ways and methods of solving business disputes, etc.

    According to the provisions of the Law on Commercial Arbitration, when
    solving the dispute by arbitration, the arbitrators concerned are appointed by
    the parties of the dispute at their own discretion. It is not compulsory for the
    parties to appoint the arbitrator from the list of arbitrators recommended by
    the Lithuanian Arbitration Association.

    Labour Law

    Directive on the establishment of a European Works Council and
    informing and consulting employees

    On 6 May 2009 the Directive 2009/38/EC of the European Parliament and of
    the Council replacing the Directive 94/45/EB on the Establishment of a
    European Works Council or a Procedure in Community-Scale Undertakings
    and Community-scale Groups of Undertakings for the Purposes of Informing
    and Consulting Employees
    was adopted.

    The amendments state that the employees’ representatives have a right to
    training during the working hours without a decrease in wages in so far as it
    is necessary to exercise their representative duties. Until now the above
    mentioned right was not established.

    Furthermore, the amendments abolish the restriction to a maximum and
    minimum number of the members of the European Works Council effective
    until now. The amendments indicate that the number of the members of the
    European Works Council shall be in proportion to the number of employees
    employed, by allocating one seat per portion of employees employed in that
    Member State, amounting to 10 %, or a fraction thereof, of the number of
    employees employed in all the Member States taken together.

    Moreover, the amended provisions of the Directive establish the procedure of
    the European Works Council formation, also, the principles which have to be
    taken into account in order to separate the functions of the European Works
    Council from the functions of the national employee representation bodies,
    etc.

    The Directive obliges the Member States to assure the implementation of the
    Directive till 5 June 2011.

    Other News

    Eversheds Saladžius hosts lunch at The World Lithuanian Economic Forum
    Competitive Lithuania: Innovative Economy, Effective Business Development,
    Investment
    taking place on 2-3 June in Vilnius, Lithuania.

    Competitive Lithuania: Innovative Economy, Effective Business Development,
    Investment World Lithuanian Economic Forum
    is a significant Lithuanian
    business and economics event dedicated to honour the Millennium of Lithuania
    together with Lithuanian business society. The event commences on 2nd of
    July at the Presidential Palace of the Republic of Lithuania and will last for two
    days. Eversheds Saladžius hosts lunch on the 3rd July. Jonas Saladžius,
    Managing Partner of Eversheds Saladžius, has become a member of the
    Honorary Council of the Forum.

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