Rolandas Valiūnas Managing Partner Lideika, Petrauskas, Valiūnas ir Partneriai
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1 Significant progress has been made in reforming the Lithuanian legal system since the restoration of independence in Last year was quite important in that respect. The new Civil Code came into effect and other important codes were newly reenacted by the Parliament. Lithuania s EU accession negotiations involving harmonisation of the Lithuanian legal system with the EC law are also coming to an end. Lithuania has notably advanced in creation of a transparent and reliable legal system, which is constantly being adjusted to market economy needs. Legal integration into the EU is just a reflection of Lithuania s alignment with the EU internal market which is also preparing for enlargement eastwards. Our goal is to make this guide a useful tool for investors from any country in the world and thus make your business in Lithuania more reliable. In preparing this amended and improved fourth edition of the guide we aimed at keeping you updated on the latest developments in law as well as presenting the legal information in the manner best suited for your business. Rolandas Valiūnas Managing Partner Lideika, Petrauskas, Valiūnas ir Partneriai
2 This is the fourth annual publication of the guide. The information in this guide is updated as of 1 January 2002 except where expressly indicated otherwise. Please note that the Lithuanian laws are constantly evolving as Lithuania continues its transition and negotiations on accession to the European Union. Therefore, this guide is not intended to take the place of legal counsel, but rather to provide a comprehensive introduction to principal fields of Lithuania s legal environment. We hope that this guide will facilitate your interaction with local professionals in an intelligent, informed and effective manner. We welcome your comments and suggestions on ways to improve this guide and wish you success in all your endeavours in Lithuania.
3 LIDEIKA, PETRAUSKAS, VALIŪNAS IR PARTNERIAI in the begining... Lideika, Petrauskas, Valiūnas ir Partneriai was founded in September 1992 upon the commitment by dynamic and innovative lawyers to create a law firm for sophisticated international corporate clients based upon the highest standards of professionalism, exemplary counselling and service, and a creative approach to solving complicated legal problems. The founding partners desired their firm to encourage professional collegiality and actively promote legal and social reform. In short, they wanted to create the law firm that they themselves would hire as clients. and at present By remaining loyal to these core principles, Lideika, Petrauskas, Valiūnas ir Partneriai has thrived during Lithuania s continuing dramatic transformation to a functioning free market economy and civil society. Lideika, Petrauskas, Valiūnas ir Partneriai is proud to represent a diverse client base, the core of which includes foreign investors, private and public companies, financial institutions, investment banks and individuals. Lideika, Petrauskas, Valiūnas ir Partneriai is best known for its representation of foreign clients in complex corporate and financial transactions. The firm has consistently recruited outstanding experienced and developing lawyers and believes strongly in the most efficient use of its talented non-lawyer staff to remain responsive and cost-effective. In 1998, Lideika, Petrauskas, Valiūnas ir Partneriai opened an office in Klaipėda, Lithuania s main seaport and a rapidly developing commercial centre. Our Clients Our clients are the best measure of how well the firm remains true to its founding principles. Lideika, Petrauskas, Valiūnas ir Partneriai has represented a significant number of Lithuania s largest foreign investors and readily provides legal services in Lithuanian, English, Russian, German, French and Polish. The firm is proud to represent world-renowned multinational corporations, leading financial institutions, foreign embassies and expatriate managers, and works in close regular contact with leading accounting firms and international law firms. The firm also provides, from time to time, counsel to the Government of Lithuania and other state institutions, its lawyers regularly participate in the drafting of new laws and frequently write and speak on legal developments. Lideika, Petrauskas, Valiūnas ir Partneriai is pleased
4 that most of our client relationships are with clients who, for many years, have consistently relied upon our advice and counsel. Continuing Commitment to Our Clients The goal of Lideika, Petrauskas, Valiūnas ir Partneriai is not merely to meet the expectations of our clients, we intend to exceed them. We understand that our reputation for excellence is earned every day with every matter handled for every client. In this spirit, Lideika, Petrauskas, Valiūnas ir Partneriai commits the following to its clients: Legal Excellence The lawyers of Lideika, Petrauskas, Valiūnas ir Partneriai constantly strive to maintain the highest level of professional development, a particularly important challenge as Lithuania moves toward accession to the European Union. Most of the firm s lawyers have earned an additional university degree or have further developed their professional skills at European and American institutions. The firm also believes strongly in the professional growth of its younger lawyers and promotes an active inhouse development programme. Responsiveness Given the business of our sophisticated clients and the pace of commercial and legal development in the region, Lideika, Petrauskas, Valiūnas ir Partneriai assumes that a high degree of responsiveness is always appreciated or required. Lideika, Petrauskas, Valiūnas ir Partneriai is technology sensitive, using , electronic legal libraries and the Internet in a continuing effort to efficiently meet client needs. Ability to Manage Major Projects Lideika, Petrauskas, Valiūnas ir Partneriai represents nearly one-half of Lithuania s top 50 foreign investors with the capacity to represent clients in the largest, most complex transactions in the region. The firm offers comprehensive full service to its clients from initial investment counselling with tax consultations to solutions to everyday corporate matters. With well-developed relationships with similar law firms in Estonia and Latvia, and connections with world-renowned law firms developed through the firm s representation as local counsel, Lideika, Petrauskas, Valiūnas ir Partneriai has the scope and depth necessary to meet the needs of multinational foreign investors.
5 Value for Money To provide value, Lideika, Petrauskas, Valiūnas ir Partneriai maintains extraordinary expertise and continually invests in developing a flexible and outstanding lawyer and non-lawyer staff. Lideika, Petrauskas, Valiūnas ir Partneriai believes in a collaborative team approach to problem solving that is cost effective for the client and institutionally beneficial for the firm. Worldwide Service Lideika, Petrauskas, Valiūnas ir Partneriai is a member of LEX MUNDI, the world s leading association of independent law firms, with more than 150 member firms, 375 offices and 12,500 attorneys in 155 jurisdictions, and also a member of TAGLaw and the International Lawyers Network. Publications Lideika, Petrauskas, Valiūnas ir Partneriai publishes Law Update a monthly review of significant changes in the Lithuanian legal system and, beginning with 1998, Doing Business in Lithuania - an annual comprehensive overview of the legal environment for business and investment in Lithuania. Both publications are available on the Firm s website at Major Areas of Practice - Corporate and Investment Law - Banking, Finance and Securities Law - IT and Telecommunications Law - Energy and Natural Resources Law - Health Care and Pharmaceuticals Law - Intellectual Property Law - Competition Law - Insurance Law - Taxation - Trade Law - Transport Law - Real Property and Construction Law - Employment and Social Insurance Law - Environmental Law - Judicial and Alternative Dispute Resolution - Inheritance and Restitution Law
6 - Family Law LIDEIKA, PETRAUSKAS, VALIŪNAS IR PARTNERIAI Law Firm Vilnius Office: Labdarių g. 5 LT-2001 Vilnius, Lithuania Tel.: , fax: lpvp@lpvp.lt Homepage: Klaipėda Office: Puodžių g. 29a LT-5800 Klaipėda, Lithuania Tel.: , fax: klaipeda@lpvp.lt Homepage:
7 Brief Introduction to Lithuanian Legal System The Lithuanian legal system is principally based on the legal traditions of continental Europe. Naturally, during Soviet occupation the Lithuanian legal system was significantly altered to conform to that of the USSR. Since 1990, however, the legal system has been reformed to meet the demands of the vast social and economic changes brought about by a return to democracy and a free market economy system. In view of Lithuania s goal to accede to the European Union, a central priority of these on-going reforms is the harmonisation of Lithuanian law with that of the EU. In the Lithuanian legal system, the principal body of law is statutory. Substantive branches of the law are codified in codes (e.g. Civil Code, Criminal Code, Code of Civil Procedure, Code of Criminal Procedure, Marriage and Family Code, Customs Code, etc.). The legal and regulatory system includes the following: the Constitution of the Republic of Lithuania; constitutional laws; laws; resolutions of the Seimas (the Parliament) and Government; decrees of the President; and acts of other governmental institutions and local municipal authorities. All regulatory acts, including laws, must comply with the Constitution. All international treaties and conventions must be implemented in Lithuania, however, the ones ratified by the Seimas prevail enjoy priority over local laws, meaning that their provisions prevail in case of inconsistency with Lithuanian national legal acts enacted either at the moment of ratification of such treaty or convention or later. A law enters into force upon its promulgation by the President (or in some cases the Chairman of the Seimas) and its publication in Valstybės žinios (the Official Gazette). The Lithuanian court system consists of courts of general jurisdiction, dealing with civil and criminal matters: the Supreme Court, the Court of Appeals, district courts and local courts. In the beginning of 1999, the system of specialised administrative courts was established to investigate administrative litigations. The latter system consists of the following courts: the Highest Administrative Court and district administrative courts. Judges of the Supreme Court are appointed by the Seimas, while judges of the Court of Appeals are appointed by the President upon approval by the Seimas. Judges of the district and local courts are appointed by the President. The doctrine of precedent earlier was not acknowledged in Lithuanian law. Nevertheless, the Senate of the Supreme Court has been analysing court practice and adopting recommendations in order to promote equitable decisions. Now stare decisis is in process of development in Lithuania as from April 1998 interpretations of law in the published decisions of plenary sessions or panels of the Supreme Court must be taken
8 into consideration by other courts as well as governmental and non-governmental institutions. The Constitutional Court of the Republic of Lithuania is not a part of the court system, but is an independent judicial body with the authority to determine whether the laws and other legal acts adopted by the Seimas are in conformity with the Constitution, and whether the legal acts adopted by the President and the Government conform to the Constitution or laws. * This guide contains general information and does not constitute and should not be relied upon as legal opinion or advice.
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