REPUBLIC OF LITHUANIA                                     
                                                                                
                               LAW                                              
                         ON ENTERPRISES                                         
                                                                                
                            CHAPTER 1                                           
                                                                                
                       GENERAL PROVISIONS                                       
                                                                                
     Article 1. The Objectives of the Law on Enterprises                        
                                                                                
     This Law  shall establish  the entities which have the right               
to engage  in permanent  commercial-economic  activities  in  the               
Republic of  Lithuania on  behalf of  their firm,  and the  legal               
foundation of their establishment and activities.                               
                                                                                
     The establishment of various types of enterprises, specified               
in Article  6  of  this  Law,  their  legal  status,  activities,               
liquidation and  reorganisation shall be regulated by appropriate               
laws.                                                                           
                                                                                
     This Law  shall not  apply  to  natural  and  legal  persons               
engaged   in    non-commercial   (non-profit)   activities.   The               
establishment,  liquidation,  reorganisation  and  activities  of               
nonprofit enterprises shall be regulated by the Civil Code of the               
Republic of Lithuania and by the bylaws of these enterprises.                   
                                                                                
     Article 2. The Enterprise                                                  
                                                                                
     The enterprise  shall be  an economic  unit having  its  own               
name, and is established to carry out certain commercial-economic               
activities in  compliance with the procedures established by law.               
The  enterprise   shall  comprise   material,     financial,  and               
intangible assets, as well as its  rights and obligations.                      
                                                                                
     The enterprise,  as a  subject of  law (the owner), may have               
the rights of a legal person or may act as a natural person.                    
                                                                                
     Article 3. The Owner                                                       
                                                                                
     The owner  shall be  natural or  legal  person,  or  several               
natural or  legal persons united into a corporation (partnership)               
who  control,   handle,  and  dispose  of  the  property  of  the               
enterprise,  and   organise  economic  and  financial  activities               
thereof by the right of ownership.                                              
                                                                                
     The owner  shall acquire  the  right  of  ownership  to  the               
enterprise in  pursuance of  the establishment,  or purchase  and               
sale of  the enterprise,  or on  the basis  of  any  other  civil               
transaction.                                                                    
                                                                                
     If the enterprise belongs to the Republic of Lithuania by the              
right of  ownership,   the owner's functions shall be performed by              
the managing body of the enterprise.                                            
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
     If the  enterprise is leased,  the rights of the owner shall               
be vested in the lessee for the period of the lease.                            
                                                                                
     Article 4. Enterprise Management                                           
                                                                                
     The system  of the enterprise management body, the procedure               
of its  formation, and its powers shall be established by the law               
which regulates  the activities  of  the  corresponding  type  of               
enterprises, the  bylaws of  the enterprise,  and other documents               
related to the founding of the enterprise.                                      
                                                                                
     Article 5. Labour Relations at the Enterprise                              
                                                                                
     Labour relations  at the  enterprise may  be  based  on  the               
employment contract or on the membership in the partnership.                    
                                                                                
     Labour relations  maintained on  the basis of the employment               
contract shall  be regulated  by the  employment contract and the               
Republic of Lithuania laws on labour, which determine the minimum               
wage, and labour and rest regime, as well as minimum requirements               
of hygiene  and safety  at work  for employees  of all  types  of               
enterprises.                                                                    
                                                                                
     Relations based  on membership  in the  partnership shall be               
regulated by enterprise establishment documents.                                
                                                                                
                            Chapter 2                                           
                                                                                
                      TYPES OF ENTERPRISES                                      
                                                                                
     Article 6.  Types of  Enterprises and  Unions of Enterprises               
(Amended 15 July 1993)                                                          
                                                                                
     In  the  Republic  of  Lithuania,  the  following  types  of               
enterprises shall be permitted to function:                                     
     1) private (personal) enterprises;                                         
     2) partnerships;                                                           
     3) limited partnerships;                                                   
     4) stock corporations (public and close);                                  
     5) state enterprises;                                                      
     6)  agricultural   companies  (whose   activities  shall  be               
regulated by a separate law); (Amended 16 April 1991) and                       
     7)  cooperative   companies.  Their   activities  shall   be               
regulated by a separate law. (Amended 1 June 1993)                              
                                                                                
     Enterprises may  form concerns, syndicates, associations and               
other unions  provided this  is in  conformity with  the  Law  on               
Competition of the Republic of Lithuania. (Amended 15 July 1993)                
                                                                                
     Article 7. Private (Personal) Enterprise                                   
                                                                                
     A private  (personal) enterprise shall belong to one natural               
person by the right of ownership or to several natural persons by               
the  right      of   common   joint   ownership.   Non-production               
organisations with  the rights  of a  legal person may also own a               
private   (personal) enterprise  by the  right  of  ownership.  A               
private (personal)  enterprise shall  not have  the rights  of  a               
legal person,  and its  property shall  not be separated from the               
owner's property.  The owner  shall be liable for the obligations               
of the enterprise by way of all his individual property.                        
                                                                                
     A private  (personal) enterprise  must have  the name  of  a               
firm, in which the owner is indicated.                                          
                                                                                
                                                                                
                                                                                
     The establishment,  liquidation and  activities  of  private               
(personal) enterprises  shall be  regulated by the Civil Code and               
other laws of the Republic of Lithuania.                                        
                                                                                
     The Government  of the  Republic of  Lithuania may grant the               
rights of a legal person to the private (personal) enterprises of               
non-production organisations at the request of their founder. The               
laws which  regulate the  activities of  state enterprises  shall               
apply to such enterprises.                                                      
                                                                                
     Article 8. Partnership                                                     
                                                                                
     A general  partnership shall be an enterprise with unlimited               
liability which  is established  on the  basis of  a  partnership               
agreement by  several natural or legal persons by combining their               
property under  a plan of co-ownership with the aim of conducting               
joint economic-commercial  activities under  the common name of a               
firm. A  general partnership shall not have the rights of a legal               
person, and its property cannot be separated from the property of               
the individual  partners. All  partners of  a general partnership               
shall be  jointly liable  for  the  obligations  of  the  general               
partnership by  way of  all their  individual property. A general               
partnership shall  not be  liable  for  the  obligations  of  its               
partners when  such obligations are incurred through activity not               
related to the activity of the general partnership.                             
                                                                                
     A general  partnership shall  have the  name of a firm which               
must contain  the name of at least one of its partners.                         
                                                                                
     The establishment,  liquidation and  activities of a general               
partnership shall  be regulated,  in addition to this Law, by the               
Civil Code  of the Republic of Lithuania, the  Partnership Law of               
the Republic  of Lithuania,  and  by  the  partnership  agreement               
whereby  the general partnership is established.                                
                                                                                
     Article 9. Limited Partnership                                             
                                                                                
     A limited  partnership shall  consist of general and limited               
partners acting  under the  common name  of the  firm who own the               
property  of   the  enterprise  by  the  right  of  common  joint               
ownership. A limited partnership shall not be a legal person, and               
its   property cannot  be separated  from  the  property  of  the               
general partners.  The general members of the limited partnership               
shall be  jointly liable  by way  of all  their property  for the               
obligations of  the limited partnership, whereas limited partners               
shall be  liable only  for  contributions  made  to  the  limited               
partnership for joint activity under the partnership agreement. A               
limited   partnership shall  not be liable for the obligations of               
its partners  when such  obligations are incurred by activity not               
related to the activity of the partnership.                                     
                                                                                
     Natural or  legal persons  may  become  members  of  limited               
partnerships. A  limited partnership   must  have  at  least  one               
general and at least one limited partner.                                       
                                                                                
     A limited  partnership must have a firm's name which contains              
the name of  at least one general partner of the partnership.                   
                                                                                
     The establishment,  liquidation and  activities of    limited              
partnerships shall  be regulated,  in addition to this Law, by the              
Civil Code  of the  Republic of  Lithuania, the Partnership Law of              
the Republic  of Lithuania,  and the partnership agreement whereby              
the limited partnership is established.                                         
                                                                                
     Article 10. Stock Corporation (Public and Close)                           
                                                                                
     Stock corporations  (public or  close) shall  be enterprises               
with limited  liability which  have the rights of a legal person,               
and the  capital of  which is  divided  into  shares.  The  share               
capital by  the right  of ownership  shall belong  to  the  stock               
corporation (either public or close) as a legal person.                         
                                                                                
     The shareholders shall be the members of the corporation who               
have become  members upon  acquisition of  shares  of  the  stock               
corporation  (public  or  close)  according  to  the    procedure               
established by  law. Natural  or legal  persons, and  the  state,               
which is  represented by  the corresponding  state agency  may be               
shareholders.                                                                   
                                                                                
     Shareholders shall  have  the  right  of  ownership  to  the               
shares.  The   sphere  of   the  share  circulation  of  a  close               
corporation shall be closed.                                                    
                                                                                
     The establishment,  liquidation,  activities  and  relations               
between stock  corporations (public  or close)  and shareholders,               
creditors, and  other relations, connected with the activities of               
the corporation, shall also be regulated by the Civil Code of the               
Republic of  Lithuania, the  Law on  Stock  Corporations  of  the               
Republic of  Lithuania, and  the bylaws  of an  individual  stock               
corporation (public  or close), approved and registered according               
to the established procedure.                                                   
                                                                                
     Article 11. State Enterprise                                               
                                                                                
     A state enterprises shall be owned by  the State of Lithuania              
or a  local government  body by  the right  of state ownership; it              
shall have  the rights of a legal person and shall be with limited              
property liability.  The State  (local government)  shall  not  be              
liable  for   the  obligations  of  the  enterprise,  whereas  the              
enterprise shall  not be  liable for  the obligations of the State              
(local government body).                                                        
                                                                                
     The    establishment,     activities,    liquidation     and               
reorganization of  state enterprises  shall also  be regulated by               
the Civil  Code of  the Republic  of Lithuania,  the Law on State               
Enterprises of the Republic of Lithuania, and by the bylaws of an               
individual state enterprise, approved and registered according to               
the procedure established by law.                                               
                                                                                
                            Chapter 3                                           
                                                                                
         BASIC PRINCIPLES OF THE ECONOMIC ACTIVITIES OF                         
                           ENTERPRISES                                          
                                                                                
     Article 12. The Sphere of Activities of the  Enterprise                    
                                                                                
     Enterprises  shall   have  the   right  to   engage  in  any               
commercial-economic or other activities, which are not restricted               
by this or other laws, the bylaws  of an enterprise, the contract               
on the  establishment of an enterprise  or other documents on its               
establishment, and which are not prohibited in other ways.                      
                                                                                
     Article 13. Issuing of Licences                                            
                                                                                
     The  following  activities  shall  be  prohibited  without  a              
licence issued  by the Government of Lithuania or other authorized              
body:                                                                           
                                                                                
     prospecting for or utilisation of mineral deposits;                        
     utilisation of natural resources;                                          
     repair of sports and hunting firearms;                                     
                                                                                
     activities in  the sphere  of pharmacy;  (Amended 31 January               
1991)                                                                           
     cultivation and  sale of  crops containing  narcotic, highly               
effective or poisonous substances;                                              
     brewing of beer and production of non-alcoholic wine;                      
     medical treatment and hygiene practices;                                   
     veterinary practice;                                                       
     legal practice, unless the law provides otherwise;                         
     establishment of educational institutions;                                 
     establishment  and   maintenance  of   gambling  houses   or               
organisation of games of chance;                                                
     carrying out of geodetic and topographical works, publishing               
and  printing   of  topographical  plans  and  maps  as  well  as               
cartographic charts; (Amended 29 October 1991)                                  
     economic activities in the sphere of transportation, unless                
the law provides otherwise; (Amended 29 October 1991)                           
     manufacturing of tobacco products ;                                        
     activities related  to the  purchasing in  the  Republic  of               
Lithuania of copper and other non-ferrous metals as well as their               
alloys and  scrap,   and the melting thereof; (Amended 29 October               
1992);                                                                          
     importing to and exporting from the Republic of Lithuania as               
well as  selling alcoholic  beverages; (Amended  14 January 1993)               
and                                                                             
     providing tourist services. (Amended 17 June 1993)                         
                                                                                
                                                                                
     Only state enterprises shall be  permitted:                                
                                                                                
     to manufacture  and sell  narcotics and highly effective and               
poisonous substances  (which  are  not  used  for  pharmaceutical               
purposes); (Amended 31 July 1990)                                               
     to manufacture wine, liqueur and other spirits;                            
     to manufacture tobacco products;                                           
     to manufacture weapons and explosives;                                     
     to treat patients ill with dangerous and especially dangerous              
infectious  diseases,   including  venereal  and  contagious  skin              
diseases, and aggressive forms of psychic (mental) diseases; and                
     to treat animals ill with especially dangerous diseases.                   
                                                                                
     The licence to prospect for deposits of mineral resources                  
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
and  to  utilise  natural  resources  shall  be  issued  only  on               
coordination with   the Department of Environmental Protection of               
the Republic of Lithuania. (Amended 31 July 1990)                               
                                                                                
     Natural  or  legal  persons  of  other  states  must  obtain               
licences from  the Government  of Lithuania for any activities on               
the territory  of the  Republic of  Lithuania. Natural  or  legal               
persons  of  other  states  who  wish  to  buy  shares  of  stock               
corporations (public  or close)  or state stock enterprises shall               
not need a special licence therefor.                                            
                                                                                
     Licences to  engage in  economic activities  must be  issued               
within 30  days  from  the  receipt  of  an  application.  If  an               
application for licence is rejected, the applicant must be sent a               
justified response  within said  period of time. Refusal to issue               
a licence  may not be based on the inexpediency of the enterprise               
activity.                                                                       
                                                                                
     Article 14. Relations between Enterprises and State Bodies                 
                                                                                
     Enterprises shall  function independently, and orders of the               
bodies of  state power  and governance  shall not  be compulsory.               
State bodies  shall not  have the  right to manage the affairs of               
enterprises  or  to  regulate  by  administrative  methods  their               
economic activities,  except  in  cases  when  according  to  the               
procedure established  by law, a special supervision procedure is               
applied to the enterprise for legal infringement, or a liquidator               
of the  enterprise is  appointed in  the case of bankruptcy or in               
other cases specified by law.                                                   
                                                                                
     All enterprises shall have equal legal-economic conditions.                
                                                                                
     When a state of emergency is declared or  a certain territory              
is declared  to be  a disaster  area upon  the resolution  of  the              
Supreme Council  of the  Republic of  Lithuania, enterprises  must              
carry out  the instructions  of the  Government of the Republic of              
Lithuania or local government bodies.                                           
                                                                                
     Enterprises  may   acquire  financial,   material  and  other              
benefits allotted (sold) by the state in the centralised procedure              
at a  price determined  by the state or  by agreement, and for the              
certain agreed  obligations taken upon by an enterprise before the              
state (local-government) body.                                                  
                                                                                
     Article 15. Control of Enterprise Activities                               
                                                                                
     Enterprises shall keep accounts in the obligatory procedure,               
and, in pursuance of the laws of the Republic of Lithuania, shall               
submit information  concerning their accounts to state bodies for               
the  purposes   of  taxation  and  financial  accounting  of  the               
enterprise. Enterprises  shall have  the right to keep  documents               
concerning their commercial activities confidential.                            
                                                                                
     The inspection  and auditing  of an  enterprise's activities               
shall only  be permitted  in   cases specified by the laws of the               
Republic of Lithuania.                                                          
                                                                                
     Article 16. Liability for the Violation of the Laws on                     
               Enterprises                                                      
                                                                                
     Legal actions may be instituted in the manner established by               
law against the enterprises (owners) and administrative officials               
for the  violation of  this or  other  laws  which  regulate  the               
establishment of enterprises and their activities.                              
                                                                                
                            CHAPTER 4                                           
ESTABLISHMENT OF ENTERPRISES AND TERMINATION OF THEIR ACTIVITIES                
                                                                                
     Article 17. The Enterprise Founder                                         
                                                                                
     The founder  of an  enterprise may  be a  natural  or  legal               
person, or  the state (local government body), represented by its               
bodies or  by the  managing body of the enterprise which is being               
established.                                                                    
                                                                                
     The  enterprise   may  be  established  by  one  or  several               
founders.                                                                       
                                                                                
     Article 18. The Procedure for the Establishment of                         
               Enterprises                                                      
                                                                                
     The procedure  for the establishment of enterprises shall be               
determined by  this and  other legal documents which regulate the               
establishment of different types of enterprises.                                
                                                                                
     Article 19. Documents Concerning the Establishment of an                   
               Enterprise                                                       
                                                                                
     Documents concerning  the  establishment  of  an  enterprise               
shall comprise  the bylaws of the enterprise, a licence to engage               
in certain  economic activities, a qualification certificate, the               
act on  the   allotment of a land plot if in accordance with this               
or other  laws these  documents are  required, and  a licence  to               
engage in  economic activities  issued by a local government when               
an enterprise  is to  be established  on its  territory with  the               
State budget  funds. In the case of certain types of enterprises,               
the  contract   on  the  establishment  of  the  enterprise,  the               
agreement on common joint activity or the lease agreement  may be               
documents on  the establishment  of the  enterprise.  Enterprises               
which are  engaged in  production  activity  must  also  have  an               
ecological  certificate-licence   issued  by  the  Department  of               
Environmental Protection  of the  Republic  of  Lithuania.  Other               
documents  on  the  establishment  of  enterprises  may  also  be               
specified by separate laws. (Amended 31 July 1990).                             
                                                                                
     The contents  and form of the documents on the establishment               
of an  enterprise shall  be specified  by the standard acts which               
regulate the  establishment of  enterprises of  the corresponding               
types.                                                                          
                                                                                
     Article 20. The Licence of  Local Government to Engage in                  
               Economic Activities                                              
                                                                                
     The licence  of the  local government  to engage in economic               
activities shall be required only in cases when the enterprise is               
established with  the State  budget funds  and is registered with               
the Ministry  of Economics of the Republic of Lithuania. In other               
cases, the  registration of  the enterprise  (the registration of               
the contract  on its  establishment  or  of  the  bylaws  of  the               
enterprise) with a local government body shall be equivalent to a               
licence to engage in economic activities.                                       
                                                                                
     The licence to engage in economic activities shall be issued               
by a  local government  body upon receipt of all the documents on               
the establishment of the enterprise.                                            
                                                                                
     The licence  to engage in economic activities may specify the              
term of functioning of the enterprise.                                          
                                                                                
     A local  government body  may deny  a licence  to engage  in               
economic activities if:                                                         
                                                                                
     1) the  establishment   of the enterprise would inflict harm               
upon the health of the population or the environment;                           
     2)  the  bylaws  of  the  enterprise    or  other  documents               
concerning its  establishment are not in compliance with the law;               
and                                                                             
     3) in other cases specified by law.                                        
                                                                                
     The local  government body  must, within  15 days  from  the               
receipt of the  documents on the establishment of the enterprise,               
consider the  application for  a licence  to engage  in  economic               
activities, and  must within  3 days  inform the  founder of  the               
enterprise of its decision in writing.                                          
                                                                                
     If there  are circumstances  specified in Part 4 hereof, the               
local  government  body  may  issue  a  conditional  licence  for               
economic activities  and fix the term within which the founder or               
the enterprise  must eliminate the circumstances which hinder the               
issuing of  the licence.  If these  requirements are not complied               
with, the  local government  body shall  have the right to revoke               
the conditional licence to engage in economic activities.                       
                                                                                
     The local  government body  may revoke the licence to engage               
in economic  activities in  the event  that the  existence of the               
circumstances  specified   in  Part   4  hereof  is  subsequently               
discovered. The local government body shall inform in writing the               
owner, the administration of the enterprise, and the state agency               
which controls  the economic  and commercial  activities  of  the               
enterprise of the revocation  of the licence.                                   
                                                                                
     If the  owner, upon the receipt of the licence  to engage in               
economic activities,  fails to  register the  enterprise within 1               
year, the licence shall become invalid.                                         
                                                                                
     The founder  of the  enterprise may  appeal to court against               
the refusal  of the  local government body to issue a licence, or               
the  decision  to  revoke  the  licence  to  engage  in  economic               
activities, or the decision to issue a conditional licence within               
30 days  after the  decision of  the  local  government  body  is               
delivered.                                                                      
                                                                                
     Article 21. Registration and Re-registration of an                         
               Enterprise                                                       
                                                                                
     Before starting  its economic  activities,  every  enterprise              
shall be registered in the obligatory manner. The activities of an              
unregistered enterprise  shall be  prohibited. The  bodies of  the              
Ministry of  Finance of  the Republic  of Lithuania  shall bring a              
legal action  to recover to the budget the owner's income from the              
activities of the unregistered enterprise.                                      
                                                                                
     An enterprise shall be considered as having been established               
from  the   date  of   its  registration.  Enterprises  shall  be               
registered with  the higher  level local government body, and the               
enterprises established with State funds shall be registered with               
the Ministry  of Economics  of the Republic of Lithuania or other               
State body commissioned by it.                                                  
                                                                                
     The registration  of enterprises  shall be  regulated by the               
Republic of Lithuania Law on the Register of Enterprises.                       
                                                                                
     The following  documents shall be filed for the registration               
of an enterprise:                                                               
                                                                                
     1) the  founder's (founders')  application to  register  the               
enterprise, containing  the requisite  data to be recorded in the               
register;                                                                       
                                                                                
     2)   officially    registered   documents   concerning   the               
establishment of the enterprise; and                                            
                                                                                
     3) certificate concerning the payment of state taxes.                      
                                                                                
     The decision  to  register  or  to  refuse  to  register  an               
enterprise must  be adopted  no later  than  15  days  after  the               
receipt of  all the  documents specified  in Part  4 hereof.  The               
registrar shall announce about the registration of the enterprise               
in the local and national press.                                                
                                                                                
     In the  cases, where the registration of an enterprise ( the               
contract on  the establishment of an enterprise or its bylaws) is               
equivalent to  the licence  of its  establishment, Article  20 of               
this Law shall apply.                                                           
                                                                                
     If the  documents on  the establishment of an enterprise are               
amended or supplemented, the enterprise shall be re-registered in               
pursuance of the requirements of this Article. An enterprise must               
also be  re-registered if  it is sold, leased or in any other way               
transferred to  other natural  or  legal  persons  or  the  state               
according to the procedure established by law.                                  
                                                                                
     Article 22. Refusal to Register or Re-register an Enterprise               
                                                                                
     Refusal to  register an  enterprise shall  be permitted when               
the documents  specified in  Article 21 of this Law are not filed               
or when  said documents  do  not  comply  with  the  requirements               
established by  law. Refusal  to register  an enterprise on other               
grounds shall  be unlawful.  The corresponding body must within 3               
days inform  the founder  of the  enterprise in writing about the               
unfavourable decision to register the enterprise.                               
                                                                                
     Refusal to register an enterprise may be appealed against in               
court. The  founder of the enterprise may bring a legal action to               
recover the  loss inflicted  by the  unlawful refusal to register               
the enterprise.  In the  event that the founder of the enterprise               
cannot assess  and specify  the actual  amount of  the loss,  the               
registrar must make reimbursement to the founder in the amount of               
1000  Roubles   for  each  month  that  the  enterprise  remained               
unregistered. (Amended 16 October 1990)                                         
                                                                                
     In the  cases, where  the registration  of an enterprise (the              
contract on  the establishment  of an enterprise or its bylaws) is              
equivalent to  the licence  to engage  in economic activities, the              
disputes concerning  registration shall be considered according to              
Article 20 of this Law.                                                         
                                                                                
     The regulations  set forth  in this Article shall also apply               
to the re-registration of enterprises.                                          
                                                                                
     Article 23. Liquidation and Reorganisation of an Enterprise                
                                                                                
     The basis for the liquidation of an enterprise may be:                     
                                                                                
     1) the  owner's decision  to terminate the activities of the               
enterprise;                                                                     
                                                                                
     2) the  court   order or  the decision  of  the  meeting  of               
creditors  declaring   the  enterprise   insolvent;  (Amended  28               
September 1993) and                                                             
                                                                                
     3) the  decision adopted  by the government bodies to revoke               
the registration  of the  enterprise for  the violations  of  law               
specified in the laws of the Republic of Lithuania.                             
                                                                                
     The body,  upon  adopting  the  decision  to  terminate  the               
activities of  the enterprise,  shall appoint  or  authorise  the               
owner to  appoint the  liquidator of  the enterprise.  After  the               
appointment of  the liquidator,  the enterprise shall acquire the               
status of  the enterprise  under liquidation:  the bodies  of the               
enterprise shall  lose their powers, the functions of the body of               
the enterprise  shall be  performed  by  the  liquidator  of  the               
enterprise, and  the enterprise  may conclude only such contracts               
which do  not contradict  the laws   regulating the activities of               
the  enterprise   under   liquidation.   The   enterprise   under               
liquidation must be re-registered.                                              
                                                                                
     The procedure  for liquidating  an enterprise  and the legal               
consequences shall  also be  regulated by  the Civil  Code of the               
Republic  of  Lithuania,  the    Republic  of  Lithuania  Law  on               
Enterprise Bankruptcy, and other legal acts, and the documents on               
the establishment of an enterprise.(Amended 28 September 1993)                  
                                                                                
      Enterprises  may be  reorganized when  they:  unite    into               
production amalgamations  and associations,  or merge  with other               
enterprises  or   associations,  or   split   up   into   several               
enterprises.  The   procedure  and   consequences  of   the   re-               
organisation of  an enterprise  shall be established by the Civil               
Code of  the Republic  of Lithuania, the  Law on Competition, and               
the Law  on Enterprise Bankruptcy of the Republic of Lithuania as               
well as  other legal  documents, bylaws  of the  enterprise,  and               
other documents  on the establishment of the enterprise. (Amended               
28 September 1993)                                                              
                                                                                
     After the  liquidation or  re-organisation of an enterprise,               
appropriate  records   shall  be   made  in   the   Register   of               
Enterprises. This  shall be   announced in the local and national               
press.                                                                          
                                                                                
     Article 24. Subsidiaries and Representative Offices of an                  
               Enterprise                                                       
                                                                                
     Enterprises   may    establish   their    subsidiaries   and               
representative  offices.   The  subsidiaries  and  representative               
offices of  an enterprise shall function  under the authorisation               
of the  enterprise. The  regulations  of  the  establishment  and               
registration of  enterprises shall  apply to the establishment of               
subsidiaries.                                                                   
                                                                                
     The establishment  of representative  offices of enterprises               
shall be regulated by a special law of the Republic of Lithuania.               
                                                                                
Vytautas Landsbergis                                                            
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
Vilnius                                                                         
8 May 1990                                                                      
No. I-196