[ESTABLISHING A BUSINESS ENTITY IN LITHUANIA] 317
define certain requirements applicable to the CEO and members of the board. For information related to the employment of the CEO from foreign countries please refer to Article 4.4 below. 3.4 Protection of Minority Shareholders The legislation of the Republic of Lithuania does not provide any exceptional rights for minority shareholders. The rights of shareholders depend on the number of shares owned by the shareholder. Legal acts grant several rights for protection of minority shareholders, such as: • the right to take an action for declaring the decisions of a company's bodies invalid, within 30 days of the day when the plaintiff found out or should have found out about the contested decision; • company must at a shareholder's written request and not later than within seven days from the receipt of the request, grant the access to and (or) submit to him/her copies of particular documents related to company (such as articles of association of the company, annual and interim financial statements, minutes of the general meetings of shareholders, etc.). The company may refuse to grant the shareholder the access to such information and/or documents if they are related to confidential information or commercial (industrial) secret, unless the
information and documents, related to confidential information and commercial (industrial) secret of the company, are necessary to the shareholder to fulfil the requirements set by legal acts; • shareholders owning not less than 1/10 of the company's shares have a right to initiate the convocation of general meeting of shareholders (Articles of Association of the company may establish a lower number of shares required); • shareholders owning not less than 1/20 of the company's shares have a right to propose a supplement to the agenda for the general meeting of shareholders; • shareholder or a group of shareholders owning not less than 1/10 of the company's shares has a right to initiate investigation of company's activity. Shareholders shall enjoy the right to request the court to appoint experts who must investigate whether a company or company’s managing bodies or their members acted in a proper way; • shareholder or a group of shareholders owning not less than 1/3 of the company's shares has a right to force sale of shares of a company’s member whose actions contradict the goals of company’s activities and where there are no grounds to expect any changes in the said actions. Shareholders of public limited liability company are not entitled to the right described herein; • shareholder or a group of shareholders, owning not less than 95% of the voting shares of a company’s shares, has the right to request the mandatory buyout of their own shares of the company by
shareholder provides a written pledge not to disclose the commercial (industrial) secret or confidential information. The company must grant access to the shareholder to other information of the company and/or provide copies of documents if such information and documents, including
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator