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Newsletter 2009 March

  • Lithuania

    19-03-2009

    Company Law

    The Rules on Proposal to Initiate the Liquidation of a Legal Entity and on Submission of Notification to the Registrar of Legal Entities on the Settlement of a Legal Entity, a Branch or a Representative Office of a Foreign Legal Entity with the Budgets and Monetary Funds have been
    amended

    As from 6 February 2009 the Order of the Head of the State Tax Inspectorate, the General Director of the Customs Department and the Director of the Board of the State Social Insurance Fund, amending the Rules on Proposal to Initiate the Liquidation of a Legal Entity and on Submission of Notification to the Registrar of Legal Entities on the Settlement of a Legal Entity, a Branch or a Representative Office of a Foreign Legal Entity with the Budgets and Monetary Funds has come into force.

    The Rules put in the new wording establish the order of preparation of the proposal to initiate the liquidation of a legal entity and the requirements of filling in and submission of the special form of notification on the settlement of a legal entity, a branch or a representative office of a foreign legal entity with the budgets and monetary funds to be submitted to the Register of Legal Entities.

    The Rules have been prepared following the article of the Civil Code, granting the right to the Registrar of Legal Entities to liquidate a legal entity on its own initiative in the cases when an entity has not submitted any data about itself for five years and when other requirements of the article have been met.

    According to the Rules, proposals to liquidate a legal entity are prepared by the officials and employees of the Regional State Tax Inspectorate and its territorial branches. The proposals are prepared on the basis of information about legal entities, submitted by the Board of the State Social Insurance Fund and a territorial customs office, when the officials of these bodies identify that the basis of the Rules for initiation of the proposal exist, for example, when a legal entity has not for once declared its income for five years, or the managing bodies of an entity cannot be found at the registered office of an entity or at the indicated addresses for more than six months, etc.

    Finance Law

    The new legal acts concerning the abuse of the market of financial instruments have been adopted.

    As from 15 February 2009 the List of Display of Market Abuse Signals and the Regulations of the Procedure for the Notifications of the Securities Commission of Possible Market Abuse have come into force.

    The Regulation replaced the decision of the Securities Commission "Concerning the List of Signals of Market Manipulation and the Procedure for the Notification of the Securities Commission of Possible Insider Dealing and Market Manipulation" which was effective until now.

    The Law on Markets in Financial Instruments establish the obligation for financial brokerage firms, credit institutions and an operator of a regulated market to report to the Securities Commission about the transactions, which might be carried out by possibly breaching the prohibition to abuse the market in financial instruments. The Regulation has been adopted in pursuance to establish the order of implementation of this obligation.

    By the decision a non-finite list of forms of display of market abuse and of inside information, and the order of submission of notification to the Securities Commission of possible market abuse have been approved. Moreover, the form of notification of possible market abuse has also been approved. The Decision applies to an operator of a regulated market, financial brokerage firms and credit institutions.

    The Securities Commission has also approved the Guidelines of Identification of Market Abuse. The Guidelines were prepared in pursuance to help financial brokerage firms, credit institutions and an operator of a regulated market to identify the cases of market abuse and to duly report to the Securities Commission on these cases. The descriptions of particular methods of market abuse and signals of inside information abuse are introduced in the Guidelines.

    Insurance Law

    The Description of the Procedure for Calculation of Votes Held by Entities, Directly or Indirectly Controlling the Shares in Insurance or Reinsurance Company has been supplemented

    On 17 February 2009 the Insurance Supervisory Commission adopted the decision supplementing the Description of the Procedure for Calculation of Votes Held by Entities, Directly or Indirectly Controlling the Shares in Insurance or Reinsurance Company.

    The Description has been supplemented with a new article, establishing that when calculating votes held by the entity, the voting rights or shares, which might be held by financial brokerage firms or credit institutions after the provision of service of signing and (or) distribution of financial instruments by undertaking to distribute them, shall not be taken into account if these rights are not being used or they are not used in any other way in order to interfere in the management of the issuer and if they are transferred in one year after acquisition.

    Audit

    The Description of the Procedure for Granting the Title of the Auditor has been approved

    On 19 February 2009 the Director of the Authority of Audit and Accounting has approved by his order the Description of the Procedure for Granting the Title of the Auditor, Suspension of the Validity of the Auditor‘s Certificate, Deprivation of the Title of the Auditor and Cancellation of the Validity of the Auditor‘s Certificate for the Auditors of the Member States and Non-member States.

    The Description has been approved according to the provisions of the Law on Audit. It establishes the procedure and the requirements for granting the title of the auditor, suspension of the validity of the auditor’s certificate, deprivation of the auditor’s title and cancellation of the validity of the auditor’s certificate for the auditors of member states and non-member states, who have been granted the right to carry out audit firstly by the competitive institution of a member state or a non-member state.

    The decisions concerning the granting or deprivation of the auditor’s title, the suspension or cancellation of the auditor’s certificate shall be made by the Authority of Audit and Accounting, following the requirements of the description.

    The Description is applicable as from 25 February 2009.

    The supplement has come into force as from 25 February 2009.

    Other News

    The Law Firm Eversheds Saladžius is proud to inform you that it has just completed the overview of the legal environment for Real Estate in Lithuania. The research was ordered and published by London based publishing house the Global Legal Group Limited, issuer of the International Comparative Legal Guide Series, providing international comparative territorial legal surveys covering the key legal practice areas. The Comparative Legal Guide to Real Estate 2009 Lithuania focuses on real estate rights, system of registration, financial, environmental and other issues related to real estate in Lithuania.

    Should you wish to read the Real Estate 2009 Lithuania Guide, please visit the homepage of Legal Group Limited www.iclg.co.uk.

    The Law Firm Eversheds Saladžius is proud to inform you that it has just completed the overview of the legal environment for Litigation and Dispute Resolution 2009 in Lithuania. The research was ordered and published by London based publishing house the Global Legal Group Limited, issuer of the International Comparative Legal Guide Series, providing international comparative territorial legal surveys covering the key legal practice areas. The Comparative Legal Guide to Litigation and Dispute Resolution 2009 Lithuania focuses on court proceedings, duties and powers of the courts, issue of orders and judgements and other issues related to Litigation and
    Dispute Resolution in Lithuania.

    Should you wish to read the Litigation and Dispute Resolution 2009 Lithuania Guide, please visit the homepage of Legal Group Limited www.iclg.co.uk.

    Eversheds Saladžius acts as one of the sponsors to the team of Law Faculty of Vilnius University going to Willem C. International Commercial Arbitration Moot in Vienna, Austria. The goal of the Moot is to foster the study of international commercial law and arbitration for resolution of international business disputes through its application to a concrete problem of a client and to train law leaders of tomorrow in methods of alternative dispute resolution. Julius Vainoris, lawyer of Eversheds Saladžius, is taking part in the Lithuanian team of the Moot.

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