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The Amendment to the Companies Act in Lithuania (Amendment) takes effect on the 1st of June 2023
All Legal Entities must comply with all the requirements, except Private Limited Companies, for which only a reduction in share capital is applicable. The main purpose of the Amendment is to liberalize the requirements for issuing privileged shares and having shareholder meetings via electronic communications. Unless the articles of association specifies a smaller number of votes, the corporation shall enable shareholders to submit a voting instruction when asked by shareholders whose shares amount to at least 1/10 of all votes and participate in the AGM/EGM via electronic communication. The amendment will enable the company’s bylaws to stipulate the voting rights provided by the privileged shares. Moreover, the change will reduce the amount of the minimum authorized share capital of Lithuanian companies to EUR 1000 and better protect the rights of minority shareholders regarding the sale of shares. Therefore, small shareholders may demand that the shareholder, who has acquired 95% of the voting shares of the corporation, purchase their voting shares.
As the Amendments do not infer any commitments, no deadline will be applied.
