Lithuania: Company statues to be changed within two years.
Lithuania adopts the euro on 1 January 2015. This means that companies must convert share capital and share value from litas into euro. Legal instruments provide the following formula for conversion:
Share capital in litas / Conversion rate (3.45280) / Number of shares issued = Share value in euro
The result must be rounded to the second decimal place by using general mathematical rules of rounding.
Share value in euro x Number of shares issued = Share capital in euro
Changes in the amount of share capital because of rounding are not to be considered as an increase or decrease in share capital. In company bookkeeping, negative differences are to be taken as income, otherwise as an expense. Because of euro adoption, companies must also change their statues and declare their share capital and the nominal value of their shares in euro. These changes must be reported to the Commercial Register by 31 December 2017. Changes to company statutes can be made:
– either together with other changes that are not connected to euro adoption, in which case they have to be confirmed by the Shareholders’ Meeting in line with the regulations in the statutes and the Law on Companies;
– or only because of euro adoption and conversion of share capital and nominal value of shares from litas into euro, in which case the changes can be confirmed by the majority of the votes of participating shareholders at the Shareholders’ Meeting.
Source: TAR, 2014, 14526; TAR, 2014, Nr. 2014-04875.