We advise shareholders on their rigths granted by Lithuanian laws or special shareholder agreements and practical issues of their enforcement. In particular, we help to protect the interests of minor shareholders by ensuring that the company is governed in the interests of all shareholders.
Where necessary, we draft and negotiate, and enforce shareholder agreements. While negotiating shareholders agreement, we normally advise on the following matters:
Knowledge & Insights
In many cases, the interests of minor shareholders are not the same as that of the major shareholders. Minor shareholders across many jurisdictions share the same interest – minor shareholders are more interested in receiving dividends from the company rather than reinvesting funds into the company. Sometimes the majority of shareholders abuse their rights by refusing to pay dividends to all shareholders, but they release the “disguised dividends” to the loyal members of the board or the supervisory board.
By reason of the Lithuanian law, the general shareholders meeting shall have the competence to decide on distributing the profit in dividends, and such decision shall be approved by 2/3 of votes participating in the meeting. The Lithuanian corporate law does not provide a right to receive mandatory minimal dividends.
Unless a special shareholders agreement is signed, the rights of shareholders are contingent upon their portion in the shareholdings:
Šulija Partners Law Firm Vilnius, registered office Jogailos street 4, 3rd floor, Vilnius, LT-01116, Lithuania, fax +370 52051926, e-mail: info@SulijaPartners.com
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