Sustainable Companies under the Lithuanian Company Law

43 Pages Posted: 12 Apr 2013 Last revised: 15 Jan 2014

See all articles by Egle Lauraityte

Egle Lauraityte

Vilnius University - Faculty of Law

Paulius Miliauskas

Vilnius University - Faculty of Law; Ghent University - Faculty of Law

Date Written: April 11, 2013

Abstract

The paper analyses possibilities and barriers to promoting sustainable companies through company legislation in Lithuania with specific focus on environmental protection and climate change.

The authors start by overviewing the framework of Lithuanian company law, including types of companies, their purpose, functions of the bodies formed, as well as certain issues relating to regulation of groups of companies in Lithuania. In addition, data on the ownership structure in Lithuanian listed companies is presented, which indicates that ownership concentration is high and follows the trend of other states in the Continental Europe. It is stated in the paper that Lithuanian company law is mainly centred on the protection of the shareholders’ interests (with certain exceptions, for example, the insolvency situation when the interests of the creditors prevail).

Furthermore, environmental protection laws, civil, criminal and administrative liability issues in context of environmental protection and climate change are addressed. The paper also presents environmental reporting standards and practices in Lithuania. The authors conclude that Lithuanian company law does not contain any environmental obligations applicable to the bodies of the company. Moreover, laws establish only few incentives for the companies to voluntarily engage in more sustainable and environmentally-conscious activities. Case law and practice of the companies do not show any significant indications in this respect as well.

This paper is one of a series of international mapping papers in the Sustainable Companies Project at the Faculty of Law in Oslo addressing the barriers and possibilities for environmentally sustainable companies.

Keywords: Lithuania, company law, corporate governance, ownership structure, sustainability, environmental protection

JEL Classification: G32, G34, G38, K22, K32

Suggested Citation

Lauraityte, Egle and Miliauskas, Paulius, Sustainable Companies under the Lithuanian Company Law (April 11, 2013). University of Oslo Faculty of Law Research Paper No. 2013-10. Available at SSRN: https://ssrn.com/abstract=2248591

Egle Lauraityte (Contact Author)

Vilnius University - Faculty of Law ( email )

Saulėtekio ave. 9, building I
Vilnius, LT-10222
Lithuania

Paulius Miliauskas

Vilnius University - Faculty of Law ( email )

Sauletekio ave. 9
Vilnius, LT-10222
Lithuania

Ghent University - Faculty of Law ( email )

Universiteitstraat 4
Gent, B-9000
Belgium

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