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LEGAL UPDATE the BALTIC STATES September 2005 No LEGAL UPDATE THE BALTIC STATES www.sorainen.com September 2005 No. 37 Sorainen Law Offices Parnu mnt. 15 Kr. Valdemara iela 21 Jogailos g. 4 Museokatu 9 B 17 10141 Tallinn, Estonia LV-1010 Riga, Latvia LT-01116 Vilnius, Lithuania 00100 Helsinki, Finland Tel: +372-6 400 900 Tel: +371 7 365 000 Tel: +370-5 2685 040 Tel: +358-9 4369 0840 Fax: +372-6 400 901 Fax: +371 7 365 001 Fax: +370-5 2685 041 Fax: +358-9 4369 0841 Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected] Estonia Essential amendments adopted to Civil Procedure and Dear clients, co-operation partners, friends and other readers, Enforcement Procedure Codes In the beginning of September 2005 Sorainen Law Offices celebrated its 10th anniversary. It was a moment to look back and remember what we have achieved over the past few years. Tallinn in September 1995 marked the start up, consisting of myself and a secretary - now our current Tallinn Latvia office manager, Mrs. Kristiina Härms. These were indeed modest beginnings: the first computer and printer were borrowed from the very first client More favourable AGA Gas company. privatisation rules From day one the focus area of our work was very much the same as today: corporate, including mergers & acquisitions, financing, real-estate law, and so on. Even the client profile was very much the same: international corporations entering or expanding in the Baltic markets, and larger local Lithuania firms doing international transactions. So even though we have experienced fast growth and a vastly changed legal and business environment, some Road Tax finally things have remained the same. abolished By the summer of 1997 we were still a fairly small firm in Estonia with only eight lawyers. But we then decided to push through our initial plan of creating a true Pan-Baltic business law firm. The first step involved ope- Sorainen Law ning an office in Riga. The first lawyer there was Gints Vilgerts – today, the office managing partner in Riga. Despite the economic crises in the Baltics Offices in 1998 and 1999, we moved on to open an office in Vilnius in January 1999, thus fulfilling our Pan-Baltic law firm concept. The first three lawyers Sorainen Law in Vilnius were Pekka Puolakka, Renata Berzanskiene and Kestutis Adamonis. All are partners with us today. Offices celebrated its 10-year During our years of operation, we have realised that the most valuable asset we have is our personnel. We have been very lucky to be able to attract anniversary some of the best lawyers and administrative personnel on the market, provide on-the-job training - and keep them. Today we number 90 people, of whom 65 are lawyers. So far, we have served more than 3000 corporate clients in Sorainen Law the Baltic States and have advised in more than 300 company acquisitions. With over 200 clients in all three Baltic States, on average we receive 300 Offices in Riga is new assignments every month. Our operation has grown larger and stronger than I ever dreamed of. organizing a seminar on development of To conclude, I would like to thank all our clients, co-operation partners, friends and - last but not least - our personnel for the years spent together Public Private thus far. I hope we will continue to enjoy each other’s company over many years to come. Partnerships (PPP) in Latvia and Europe Aku Sorainen Managing Partner 1 © SORAINEN Law Offices 2005 All rights reserved LEGAL UPDATE Estonia EUROPEAN UNION chromium) and brominated flame retar- EXECUTION PROCEEDINGS dants (polybrominated biphenyls (PBB) Electrical and Electronic Equipment or polybrominated diphenyl ethers New Code of Enforcement Procedure Waste Management and Hazardous (PBDE)) in new electrical and electronic makes debt collection easier Substances equipment put on the market from Under legislation adopted 15.06.2005, 01.07.2006. A number of applications the new Codes of Civil Procedure The European Union (EU) identifies waste for these substances are exempted in the (tsiviilkohtumenetluse seadustik) and prevention and management as one of Directive. As a result, the the WEEE Enforcement Procedure (täitemenetluse four top priorities in its 6th Environment Directive will require producers’, seadustik) take effect on 01.01.2006. The Action Program. In order to tackle the importers’ and distributors’ consideration new Code of Civil Procedure was fast-increasing waste stream of electrical to include in their supply and other described in the BLU May 2005 issue, and electronic equipment, the EU business contracts the requirements for and in the current issue we will briefly adopted Directive 02002/96/EC on waste compliance with the Directive and the introduce the essentials of the new Code electrical and electronic equipment (the allocation of liability for treatment and/or of Enforcement Procedure. WEEE Directive) and Directive disposal and/or recovery of WEEE sold 2002/95/EC on restricting the use of after 13.08.2005. The new Code provides more exact certain hazardous substances in electrical regulations for the work of bailiffs and and electronic equipment (the RoHS In Estonia, Latvia and Lithuania, the improves the possibilities of creditors in Directive). Both Directives will affect WEEE collection and management collection of debts. The Code makes it not only producers of electrical and system must be organized to ensure that possible to obtain better information electronic equipment, but will also have from 01.01. 2009 the volume of collec- about a debtor’s income, in particular a implications for distributors and end ted WEEE reaches at least 4 kilograms sworn statement from debtors as to their users of these products. of household WEEE per inhabitant per assets and liabilities. This is especially year. Practically speaking, these volumes useful in cases where data available in The WEEE Directive aims at minimising should be reached in 2008. Moreover, public databases do not enable the impact of electrical and electronic as from 13.08. 2005, producers and execution of enforcement procedures equipment on the environment both importers of electrical and electronic or in cases where a debtor’s economic during their life time and when they equipment must mark products put on relations are complicated and the pool become waste. It applies to a great the market after that date with a special of assets is relatively volatile. number of products (i.e. refrigerators, symbol. washing machines etc) listed in the The Code of Enforcement Procedure Annexes to the Directive. It encourages Additional information: extends the possibilities for seizure of a and sets criteria for the collection, Marius Urbelis debtor’s assets. Now, these can be treatment, recycling, and recovery of e-mail: [email protected] subject to pledge of seizure. This is based waste electrical and electronic on which claims are to be satisfied, equipment. The Directive makes proceeding from the occurrence of producers responsible for financing most pledges of seizure. Therefore, in the of these activities. It also requires future, the creditor should turn to the producers to appropriately mark - with bailiff as soon as possible to ensure an a specific symbol - electrical and early right of pledge. electronic equipment put on the market after 13.08.2005. Following the WEEE ESTONIA The Code enables seizure of concealed Directive, distributors will have to take income – for example, when a debtor’s back electrical and electronic equipment EMPLOYMENT LAW salary is paid to a third person or where from private householders free of charge. More certainty in labour disputes a clearly too low salary is agreed with The Directive also sets the requirement On 15.06.2005, the Parliament adopted the employer. addressed to EU Member states to ensure amendments to the Individual Labour that by 31.12.2006 at the latest they Dispute Resolution Act (individuaalse Another new institution is replacement achieve a rate of separate collection of töövaidluse lahendamise seadus). These seizure, according to which an item of at least four kilograms on average per amendments, entering into force on value owned by a debtor (e.g. an antique inhabitant per year of WEEE from private 01.01.2006, provide that Labour Dispute dining table, a valuable watch or clock, households. This requirement will Committees may not resolve individual expensive tableware) may be seized if materialize in the shape of specific tasks labour disputes where financial claims a less valuable item or a sum of money that producers and importers of electrical exceed 50 000 Estonian kroons. This for obtaining it is given to the debtor in and electronic equipment must comply means that labour disputes involving exchange. with by the given deadline. As a result, higher amounts should be referred the WEEE Directive will oblige directly to the court. Compared to the In addition, execution proceedings producers, importers, and distributors court, the Labour Dispute Committees include a recovery mechanism (i.e. to consider including in their supply and are viewed as more favourable to certain transactions by a debtor may be other business contracts requirements employees, so that this change in declared null and void for the purpose for compliance with the Directive and legislation should come as welcome of restoring the debtor’s pool of assets), the allocation of liability for treatment news for employers. which until now was only possible in and/or disposal and/or recovery of WEEE bankruptcy proceedings. Immediate sold after 13.08.2005. Additional information: compulsory enforcement will also be Lea Liigus significantly more effective – a person The RoHS Directive, complementing the e-mail: [email protected] who has submitted to immediate WEEE Directive, aims at protecting compulsory enforcement based on a human health and the environment by respective agreement may only dispute restricting the use of certain hazardous the compulsory enforcement by filing a substances in electrical and electronic suit with the court.
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