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Dear client and cooperation partner,
We would like to inform you that as of 1 July 2009 the amendments to the Law on Companies of the Republic of Lithuania came into force. It changes the Management Board decision-making order of public and private limited liability companies.
The Management Board decision now is considered official when more than a half (1/2) of all the elected Management Board members vote in favour of it. Prior to the amendments to the law, for the Management Boards decision to be official, it was enough if more members participating in the meeting voted in favour of it than against it. However, the requirement that more than two-thirds (2/3) of all Management Board members have to participate in the Management Board meeting was left unchanged.
For example, the decision made by a Management Board formed of 7 members may be adopted if no fewer than 5 members participate in the meeting and at least 4 members vote in favour of the decision (more than half (1/2) of all the elected Management Board members). Before the amendments, such a decision (with the participation of the same number of Management Board members) could be adopted if 3 Management Board members voted in favour of it (i.e. having received more votes for it than against) or even if fewer votes in favour of it were received (e.g. if members abstained).
Please note that the greater majority requirement may be established in a company’s Articles of Association.
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