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Corporate Governance in Lithuania

image of Corporate Governance in Lithuania

This review of Corporate Governance in Lithuania was prepared in the context of Lithuania’s accession process to the OECD. It assesses Lithuania’s corporate governance arrangements – the laws, regulations and institutions that shape company oversight – for listed companies and state-owned enterprises (SOEs) against the standards of the G20/OECD Principles of Corporate Governance and the OECD Guidelines on Corporate Governance of State-Owned Enterprises. The report reaches a positive overall assessment of Lithuania’s willingness and ability to implement these corporate governance standards and makes a number of recommendations to address remaining weaknesses. With respect to listed companies, the report notably recommends that Lithuania give priority to monitoring implementation of recent legislative reforms to strengthen corporate boards of directors and, in the medium term, consider further strengthening and clarifying their legal responsibilities. With respect to SOEs, this report recommends that Lithuania give priority to further strengthening the effectiveness of the state’s ownership coordination function, ensuring that the state’s requirements on board composition and disclosure practices are fully implemented by the SOEs for which they are mandatory and moving forward with plans to convert commercially-oriented statutory SOEs to limited liability companies.

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Lithuania's corporate governance landscape

This chapter describes the corporate governance arrangements – the laws, regulations and institutions that shape company oversight – for both listed and state-owned enterprises in Lithuania. Following an introductory overview of Lithuania’s economic context and business climate, the chapter describes the corporate ownership and control landscape for Lithuania’s 27 listed companies. It then details the laws, regulations and institutions that constitute the corporate governance framework for these companies, with an overview of recent related legislative reforms. This is followed by a descriptive overview of the corporate governance arrangements for Lithuania’s 66 state-owned enterprises, including a synthesis of recent or ongoing state ownership reforms.

English

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