Abstract
Just as in the entire European Union, in Lithuania company groups are an integral part of the modern business world. It is the companies that are part of company groups are leading both in Lithuania and in the European Union in terms of a number of economic indicators: revenues, number of employees, amounts of taxes paid and other contributions. Despite being an integral part of modern business, regulation of company groups has not yet attracted sufficient attention both at the European Union or the national level. Such absence of a consistent regulation may lead to or cause, inter alia, infringements of rights of minority shareholders. Accordingly, the purpose of the present article is to assess whether the effective Lithuanian or European Union regulation is sufficient to protect minority shareholders’ rights in group of companies.
Highlights
In Lithuania, as in other European Union countries, groups of companies are an integral part of the modern economy
One may wonder why is there no such regulation? Have there been any attempts to regulate groups of companies? Is such regulation needed at both the EU and national level? In the absence of regulation of groups of companies, are the rights of minority shareholders in a group of companies sufficiently protected? what are the prospects for regulating groups of companies and, for protecting the rights of minority shareholders in groups of companies? the purpose of this article is to assess whether the current Lithuanian or EU legal regulation is sufficient to protect the rights of minority shareholders in a group of companies
It should be noted that due to the limited scope of this article, this article is not intended to provide a detailed analysis of the above-mentioned EMCA provisions and rather seeks to clarify the shortcomings of the current Lithuanian legal framework related to the protection of minority shareholders rights in groups of companies and specify, why the transposing into national law of provisions of EMCA should be considered as a possible tool to remedy these shortcomings
Summary
In Lithuania, as in other European Union (hereinafter – EU) countries, groups of companies are an integral part of the modern economy. In Europe, the largest companies belong to groups of companies[5] It may seem, that much attention should be paid at both EU and national level to the proper regulation of groups of companies, including the protection of the rights of minority shareholders in groups of companies. It should be noted that due to the limited scope of this article, this article is not intended to provide a detailed analysis of the above-mentioned EMCA provisions and rather seeks to clarify the shortcomings of the current Lithuanian legal framework related to the protection of minority shareholders rights in groups of companies and specify, why the transposing into national law of provisions of EMCA should be considered as a possible tool to remedy these shortcomings
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