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Legal Monitor Monitor 2006

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Legal Monitor Monitor 2006 VICTORIA Tower J. Jasinskio 16B SALADÞIUS & PARTNERS LT-01112 Vilnius, Lithuania Tel. (+370 5) 23 92 391 Law firm Fax (+370 5) 23 92 390 www.splegal.lt March LEGALLEGAL MONITOR MONITOR 2006 Legal Monitor is a publication of the Law Firm Saladžius and Partners where we provide the information on the latest Lithuanian and EU legislation, related to the legal entities' activities. In this issue we discuss the new draft law concerning amendments and supplements of the Law on Legal Status of Aliens, draft Law on Information Society Services of the Republic of Lithuania, Proposals of the European Commission for making easier exercise of the shareholders' rights, instructions on granting the permits for permanent residence in the Republic of Lithuania and assessment of fictitious marriage, as well as a new business accounting standards on „Reorganisation of companies“ and „Related persons“. information society are defined as the services provided usually for remuneration by electronic means upon the individual request of the receiver of the services of information society. Furthermore, the draft Law on Information Society Services contains, among the others, particular provisions concerning conclusion of contracts by electronic means, moment and place of dispatch and EU & LITHUANIAN LAW NEWS receipt of the offer and the acceptance. The Law will provide possibilities of developing services based on modern technologies and 1. A new draft law concerning e-business. It is expected also that this law will fill the gaps related to legal framework of services of information society. amendments and supplements of the Law on Legal Status of Aliens Draft Law on Information Society Services (20th January 2006, No. XP-867(2)) It is proposed by this draft law to change the notion of the family 3. Proposals of the European Commission members of European Union citizens by broadening it and including for making easier exercise of the persons who are financially supported by the citizens of the EU or who have to stay with the citizens of EU for other reasons. It should shareholders' rights be noted that according to this draft law the directives of EU, regulating the family reunification, the status of citizens of third While taking into consideration the progress of modern technologies countries or questions concerning status of stateless persons, are and development of business, the Commission proposed in 2003 an implemented. Action Plan where it recited the measures for modernizing EU company law and increasing competitiveness in the Community. According to this project it is proposed to strengthen the liability of the persons who abuse the possibility to acquire permit to live in the The Action Plan contains a measure to pass a directive concerning Republic of Lithuania by making a fictitious marriage. Also, it is minimum standards, facilitating implementation of the rights of the proposed to add provision in the law that the citizen of EU looses shareholders of the listed companies, such as right to pose questions, permit to live in the Republic of Lithuania, if he/she gets another vote at a distance, participate in the general meetings of shareholders permission to live in another country of the EU; the permit is also by using electronic technologies. cancelled if the alien lives outside the EU member state for more than 12 consecutive months. Following the provisions of the Action Plan, the European Commission proposed a directive, in which the obligation for the EU Draft Law on Amendments to the Articles 2, 3, 6, 7, 11, 17, 18, 21, 25, 26, 28, member states to adopt legal acts, establishing the right of shareholders 33, 34, 35, 40, 43, 46, 50, 51, 53, 54, 55, 56, 64, 79, 88, 90, 93, 97, 99, 100, of listed companies to get timely access to the complete information on 101, 102, 104, 106, 113, 115, 127, 130, 131, 132, 136, 138, 140, Supplements general meetings, as well as voting results and other similar to the Articles 491, 1011, 1401, Annulations of the Articles 30, 105 and Change information, notwithstanding the place of permanent residence of of the Title of Chapter X, as well as Amendments and Supplements to the shareholders in the EU, is established. The shareholders' possibility to Annex of the Law on Legal Status of Aliens (2006 01 20, No. XP-1062) enjoy some other rights, especially the right to vote at a distance or using the proxy is also foreseen in the draft directive. The other aim of 2. The draft Law on Information Society this directive is to set the minimum standards for prompt and effective Services of the Republic of Lithuania was cooperation between managers of companies and shareholders, who are in the different EU member states. presented in Seimas The proposed directive would provide for only the minimum The draft law indicates that the provider of services of information requirements for harmonization of certain aspects of company law in society may be natural or legal person, including the branch or the level of the European Union. On the other hand, the member representative office of the foreign company and these services may states would not be restricted from the possibility to set stringent be provided without any consent of the public administration standards to the listed companies that fall under their jurisdiction. institution, unless the other laws provide for otherwise. The draft law also provides for the main concepts such as e-commerce, the services Proposal for a Directive of the European Parliament and of the Council on the of information society, commercial information, etc. The services of exercise of voting rights by shareholders of companies having their registered 1 VICTORIA Tower J. Jasinskio 16B SALADÞIUS & PARTNERS LT-01112 Vilnius, Lithuania Tel. (+370 5) 23 92 391 Law firm Fax (+370 5) 23 92 390 www.splegal.lt March LEGALLEGAL MONITOR MONITOR 2006 office in a Member State and whose shares are admitted to trading on a Approval of the 35th Business Accounting Standard “Reorganisation of regulated market and amending Directive 2004/109/EC (COM/2005/0685 Companies” (announced: State Gazette, 2006, No. 5 - 188) final - COD 2005/0265) 6. A new business accounting standard on 4. Instructions on Granting the Permits for “Related persons” was adopted Permanent Residence in the Republic of Lithuania and Assessment of Fictitious The aim of this standard is to set the procedure of presentation of information regarding the related persons in financial statements. Such Marriage were approved by the order of information would provide an opportunity to evaluate company's the Minister of Internal Affairs results, financial situation and continuation of company's activity in a more reliable way. It is emphasized that while identifying the related It is a new legal act, implementing the Law of the Republic of persons the company shall evaluate not only the form of legal Lithuania on the Legal Status of Aliens. relations, but also their economic meaning. These instructions regulate the examination of foreigner's request to This standard is applicable when drafting the financial statements for st grant or change the permit for permanent residence in the Republic of the period starting on or after the 1 of January 2006. Lithuania, the assessment of making fictitious marriage and awarding of decisions to grant permit for permanent residence in Lithuania. Order No. VAS-10 of the Director of the Public Institution the Accounting Institute of the Republic of Lithuania of 22 December 2005 “Regarding approval of the 30th Business Accounting Standard “Related The instructions provide that any person individually or through the persons” (announced: State Gazette, 2006, No. 2 - 39) representative presents an application form to grant permit for permanent residence in the Republic of Lithuania. The legal act provides also the list of documents to support the application. The period of such application examination is six months. Civil servants are obliged to assess the possibly fictitious marriages made in 5 years before the application to get permit for permanent residence was submitted. Furthermore, the instructions provide grounds upon existence of which the marriage may be held as fictitious. Should the application of the alien be rejected he/she can present a OTHER NEWS repeated application to grant the permanent residence permit, but not earlier than after one year. The Law Firm Saladžius & Partners 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 Order No. 1V-445 of the Minister of Internal Affairs of the Republic of Global Legal Group Limited, issuer of the International Comparative Legal Lithuania “Regarding the Issuance of the Permanent Residence Permit for the Guide Series, providing international comparative territorial legal surveys Aliens to Live in the Republic of Lithuania and Assessment of a Fictitious covering the key legal practice areas. The Comparative Legal Guide to Real Marriage” (State Gazette, 2006, No. 5) Estate 2006 Lithuania focuses on real estate rights, system of registration, financial, environmental and other issues related to real estate in Lithuania. 5. A new business accounting standard on Should you wish to read the Comparative Legal Guide to Real Estate 2006 Lithuania, please visit homepage of the Law Firm Saladžius & Partners www. “Reorganisation of companies” was splegal.lt or Global Legal Group Limited homepage www.iclg.co.uk. adopted Besides cultivating the distinct professional career four of the attorneys of the Law Firm Saladžius & Partners are lecturing at the most prominent Universities This standard was adopted in order to prescribe how the economic of Lithuania. The Managing Partner Jonas Saladžius shares his substantial legal operations and economic events related to company's reorganisation knowledge even at three Universities of Lithuania: Mykolas Romeris University have to be registered, and financial statements of the company being (Law University of Lithuania), International Business School (Vilnius reorganized have to be drafted.
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