Lithuanian companies which do not submit information about their shareholders will receive fines
The Code Administrative Offences will enter into force April 1, 2016. The Code establishes fines for CEOs of the companies which will fail to fulfil the obligation to submit information about their shareholders. More about this new change is provided in this article.
The obligation to submit information about shareholders
The obligation to submit information about shareholders of the companies was set forth in the beginning of 2014. The companies should have submitted the above information until July 10, 2014. However July 10 has come and gone, and only 10 702 companies out of 30 000 have fulfilled the obligation. Current situation has provoked the need of changes.
From April 1, 2016, the Commercial Register of Lithuania will have the right to fine the CEOs of the companies which have not submitted the information about their shareholders. This is a significant change, since prior to the amendments the right to fine the companies belonged exclusively to the courts.
After the amendments come into force, the fines will be from 30 EUR to 1500 EUR. Some claim that this fine will be an easy way to hide the information from the Commercial Register for large companies. Even though the fine of up to 1500 EUR may be significant to a small company, for large companies this will be an irrelevant amount. After payment of said fine, large companies will be able to keep their silence about the shareholders.
English speaking lawyer the Gencs Valters Law Firm in Vilnius, practising in field of Corporate law in Lithuania, Latvia and Estonia.
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