REPUBLIC OF LITHUANIA                                     
                                                                                
                                 LAW                                            
                                                                                
                           ON ASSOCIATIONS                                      
                                                                                
                                                                                
     Article 1. The Purpose of the Law                                          
       1.   This  Law  shall  regulate  the  procedure  for   the               
establishment,   management,  activities,   reorganisation,   and               
liquidation of associations.                                                    
      2.  This  Law  shall  not apply to those  associations  the               
activities whereof are regulated by separate laws.                              
                                                                                
     Article 2. The Concept of the Association                                  
      1.  An association shall be a voluntary union of legal  and               
natural  persons  which  performs managerial,  economic,  social,               
cultural,  educational, scientific research tasks  and  functions               
which are established by the association members.                               
      2.  The  objectives of the activities, main  functions  and               
tasks  of the association must relate to the activities or  needs               
of the association members and must be laid down in its statutes.               
      3. Legal and natural persons may unite into associations by               
the  type  of  activities, consumption, functions,  and  area.  A               
person may be a member of several associations.                                 
                                                                                
     Article 3. The Status of the Association                                   
      1. The association shall be a legal person from the day  of               
its  registration, having the seal with its name and a settlement               
account.  The association shall be liable for its obligations  to               
the  full extent of its property and shall not be liable for  the               
commitments assumed by its members.                                             
      2.  The association shall be a non-profit organisation.  It               
cannot distribute a gained profit among its members. A non-profit               
organisation shall be an entity possessing the rights of a  legal               
person  which  has been set up in accordance with  the  procedure               
established  by the laws and the objective of activities  whereof               
is not profit seeking.                                                          
      3.  The  name  of  the association must  contain  the  word               
"association".  The name of the association must conform  to  the               
requirements of the Regulations of Firm Names which are  approved               
by the Government.                                                              
      4.  The  association shall enjoy the freedom of activities,               
initiative  and  decisions, granted by the  Constitution  of  the               
Republic  of  Lithuania, this and other laws of the  Republic  of               
Lithuania, decrees of the Government, and the determined  duties,               
and  in  its  activities shall abide by the association  statutes               
registered in accordance with the procedure established  by  this               
and other laws.                                                                 
                                                                                
     Article 4. Association Members                                             
      1.  Legal  and natural persons of the Republic of Lithuania               
and  other  states  may be association members.  Restrictions  on               
membership   of  foreign  legal  and  natural  persons   in   the               
association may be set in the statutes.                                         
      2.  The members must observe the association statutes.  The               
person  who pursues interests contrary to the objectives  of  the               
association may not be admitted to the association.                             
      3.  The  list  of  all  the members must  be  held  in  the               
association,  and  the  list of the  members  who  belong  to  an               
affiliate must be held in that affiliate. Each association member               
shall have the right to familiarise himself with these lists.                   
     4. The association member shall have the right to:                         
     1) make use of the services rendered by the association;                   
      2) acquire the information concerning the activities of the               
association;                                                                    
     3) use the information collected by the association; and                   
      4)  dispute in court the resolutions of the general meeting               
of  the  members  and  the  collective  managing  body,  and  the               
decisions of the administration.                                                
      5.  The  members shall have the right to withdraw from  the               
association and the association shall have the right to expel the               
members.  The  rights of the members, who have withdrawn  or  who               
have  been  expelled from the association, to  the  part  of  the               
association  property  shall  be  exercised  according   to   the               
procedure established in the statutes.                                          
      6.  If  the  member's  rights or lawful  interests  in  the               
association  are  violated, the member shall have  the  right  to               
defend them judicially.                                                         
                                                                                
     Article 5. Establishment                                                   
      1.  An association may be established on the initiative  of               
legal  and natural persons. The association shall consist  of  at               
least 3 members.                                                                
      2.  The initiators of establishment of the association must               
convene   a   constituent   assembly   in   which   the   persons               
(representatives  authorised  by  them)  who  have  expressed  in               
writing  their desire to be the members of the association  which               
is   being  established  shall  have  the  right  to  vote.   The               
constituent   assembly  shall  adopt  the   decision   concerning               
establishment  of the association, its statutes and  shall  elect               
managing bodies.                                                                
                                                                                
     Article 6. The Statutes                                                    
      1. The statutes shall be a legal document which governs the               
activities of the association.                                                  
     2. The following must be stated in the statutes:                           
     1) the name of the association;                                            
     2) the registered office (address) of the association;                     
     3) the objectives, functions and tasks of the association;                 
     4) the rights and duties of the association members;                       
     5) the procedure and conditions of admitting, withdrawal and               
expulsion of the members from the association;                                  
      6)  the  procedure for forming the managing  bodies,  their               
competence,  functions  and  responsibility,  the  procedure  for               
removing  of the elective managing bodies and their members,  the               
procedure for the payment for work of the members of the elective               
managing bodies;                                                                
       7)   the   procedure  for  establishing  and   liquidating               
affiliates;                                                                     
     8) the sources of the property and funds;                                  
     9) control of financial activities;                                        
      10)  the  procedure  for  amending  and  supplementing  the               
statutes;                                                                       
     11) duration of the activities of the association; and                     
      12)  the  procedure  for reorganising and  liquidating  the               
association.                                                                    
      3. The statutes may also contain other provisions which are               
in compliance with the laws.                                                    
                                                                                
     Article 7. Registration                                                    
      Associations shall be registered, re-registered and removed               
from the register in accordance with the procedure established by               
the laws. Disputes concerning the registration of the association               
shall be settled in court.                                                      
                                                                                
     Article 8. Affiliates                                                      
       1.  The  association  shall  have  the  right  to  set  up               
affiliates. They shall be set up in the procedure established  in               
the statutes.                                                                   
      2.  An  affiliate shall be a subdivision of the association               
with  a separate registered office. The affiliate is not a  legal               
person  and  shall  use the name of the association  as  a  legal               
person.  The  affiliate  shall operate  in  compliance  with  the               
association  statutes  and  the powers  granted  by  the  general               
meeting of the members which must be specified in the statutes of               
the association and the regulations of the affiliate.                           
      3.  The  affiliate  shall be registered, re-registered  and               
removed  from  the  register  in accordance  with  the  procedure               
established by laws.                                                            
                                                                                
     Article 9. The Union of Associations                                       
      1.  In order to solve their general tasks associations  may               
unite  into  unions (confederations). The unions (confederations)               
of  associations shall be established and operate in  the  manner               
prescribed by this Law.                                                         
      2.  An association shall join the union (confederation)  at               
the  resolution of the general meeting (conference, congress)  of               
the  members, which is adopted in accordance with the established               
procedure.                                                                      
      3.  Enterprises, provided that they are not the members  of               
the  associations which are the members of the union, may be  the               
members of that union (confederation).                                          
                                                                                
     Article 10. The Rights and Duties of the Association                       
      1.  In order to conduct the activities provided for in  the               
statutes, the association may:                                                  
      1) have a settlement account and a foreign currency account               
with the banks according to the established procedure;                          
      2)  possess and use the property and funds which belong  to               
it, and dispose thereof;                                                        
     3) conclude contracts and assume obligations;                              
      4)  set  up  enterprises and organisations. They  shall  be               
established and shall operate in accordance with the law  on  the               
enterprises or organisations of an appropriate type;                            
     5) establish mass media facilities;                                        
      6)  join  the  union  (confederation) of  associations  and               
withdraw from it; and                                                           
     7) join international organisations.                                       
      2.  The  association shall be prohibited from  engaging  in               
commercial activities.                                                          
       3.  The  association  shall  conduct  accounting,  present               
financial accounting data to state institutions and pay taxes  in               
accordance with the procedure established by the laws.                          
                                                                                
     Article 11. The Property and the Sources of Income                         
      1.  The  association  may by the  right  of  ownership  own               
buildings, means of transportation, equipment and other kinds  of               
property  necessary  for carrying out of the activities  provided               
for in its statutes which may be acquired with the funds from the               
sources established in Paragraph 2 of this Article.                             
     2. Income sources of the associations shall be as follows:                 
     1) initial contributions of the members, membership fees and               
special-purpose contributions;                                                  
     2) special-purpose funds of the State and local authorities;               
     3) funds and property donated by legal and natural persons;                
     4) legacies left to the association;                                       
     5) profit of the enterprises established by the association;               
and                                                                             
     6) interest paid by credit institutions on the funds kept in               
them.                                                                           
     3. The receipts of the association from the activities which               
are  not  provided  by  the statutes, as  well  as  the  receipts               
generated  or  applied  in  violation  of  this  Law,  shall   be               
transferred to the State Budget in the manner prescribed by laws.               
                                                                                
     Article 12. Managing Bodies                                                
      The  managing bodies of the association shall comprise  the               
general meeting (conference, congress) of the members, collective               
managing body (bodies) and the administration.                                  
     Article 13. The General Meeting of the Members                             
     1. The general meeting (conference, congress) of the members               
shall be the supreme managing body of the association.                          
      2.  The meeting (conference, congress) shall have the power               
to:                                                                             
     1) adopt, amend and supplement the statutes;                               
     2) set objectives and main tasks of the association;                       
      3)  establish  the  procedure  for  the  formation  of  the               
collective  managing bodies, elect their members and remove  them               
from office;                                                                    
      4)  fix  the  amount  of contributions  and  taxes  of  the               
association members and the procedure of payment thereof; and                   
     5) establish enterprises, mass media facilities belonging to               
the association, reorganise or liquidate the association.                       
      3.  The meeting (conference, congress) must be convened  at               
the  time  established in the statutes. An extraordinary  meeting               
must  be  convened provided that it is requested by no less  than               
1/5  of the association members, by the resolution adopted by the               
collective   managing  body,  or  by  the  examiner  (examination               
commission, auditor).                                                           
      4.  The  meeting (conference, congress) shall be considered               
valid  if no less than half of its potential participants  attend               
it.  Decisions shall be adopted by a simple majority vote.  Votes               
of no less than 2/3 of the representatives present at the meeting               
shall  be  necessary in order to adopt resolutions on the  issues               
specified in items 1 and 5 of Paragraph 2 of this Article.  While               
voting  each  participant of the meeting (conference,  congress),               
regardless  of  the  amount  of the  contributions  made  by  the               
respective  participant  or  the  association  member   whom   he               
represents, and the number of the members represented, shall have               
one deciding vote.                                                              
      5.  If the meeting does not have a quorum, a repeat meeting               
must  be  called  within  one month according  to  the  procedure               
established in the statutes which shall have the right  to  adopt               
resolutions  on the items set in the agenda of the meeting  which               
has  not  taken place, irrespective of the number of the  members               
present.                                                                        
     6. Instead of a general meeting of the members, a conference               
or  congress  may  be convened in accordance with  the  procedure               
established in the statutes.                                                    
                                                                                
     Article 14. The Collective Managing Body                                   
     1. During the period between general meetings of the members               
a collective managing body (bodies) shall guide the activities of               
the   association,  which  is  elected  in  accordance  with  the               
procedure  established in the statutes and for the set period  of               
time.                                                                           
      2.  The  collective managing bodies may be: the Board,  the               
Council,  the Presidium. The association statutes shall establish               
which  managing  bodies are set up, the number of their  members,               
functions and powers of the managing bodies.                                    
      3. Natural persons - association members or representatives               
of  the  collective members may be the members of the  collective               
managing  body. The statutes may contain additional  requirements               
for a member of the collective managing body.                                   
      4.  The  meeting of the collective managing body  shall  be               
valid  if  it is attended by at least 1/2 of the members  of  the               
managing  body,  and  the adopted decisions shall  be  considered               
lawful when no less than half of the members of the managing body               
vote  for  them. The members shall have equal voting  rights.  In               
case  of  a tie, the head's of the collective managing body  vote               
shall be casting.                                                               
                                                                                
     Article 15. The Administration                                             
      1.  The  operative  activities of an association  shall  be               
organised and carried out by the administration.                                
      2. The association must have the head of the administration               
and chief financier (book-keeper). One and the same person cannot               
hold both posts concurrently.                                                   
      3. The head of the administration and chief financier shall               
be  appointed and their official salaries shall be fixed  by  the               
collective  managing  body which concludes  employment  contracts               
with them.                                                                      
     4. The head of the administration shall:                                   
     1) direct the administration;                                              
      2)  according to the granted powers enter into transactions               
on  behalf  of  the association and represent the association  in               
other institutions; and                                                         
     3) take on a job and dismiss employees of the administration               
as well as fix their official salaries.                                         
                                                                                
     Article 16. Control of Financial Activities                                
       1.   The  association  must  from  time  to  time  perform               
inspections  of  financial activities. The  inspections  must  be               
performed  by the examiner (examination commission, auditor)  who               
is  elected by the general meeting (conference, congress) of  the               
members  for  the  term established by the  statutes.  A  natural               
person  who  has  a qualification certificate or a  legal  person               
which  has the right to provide audit services may be an examiner               
or  auditor.  A  member of the collective managing  body  of  the               
association, and an employee of the administration cannot  be  an               
examiner.                                                                       
      2.  The examiner shall control the financial activities  of               
the association. He must:                                                       
      1)  inspect  annual accounts of the association  and  other               
financial accounting documents;                                                 
     2) at the instructions of the general meeting of the members               
or  the Board perform the financial accounting inspections of the               
association;                                                                    
      3) notify the next scheduled general meeting of the members               
or  the sitting of the collective Managing body of the violations               
disclosed during the inspection.; and                                           
      4)  present to the general meeting of the members an annual               
report   on  the  inspection  of  financial  activities  of   the               
association.                                                                    
      3.  The administration and the collective managing body  of               
the  association  must  furnish to  the  examiner  the  financial               
accounting documents requested by him.                                          
      4.  The  examiner  shall  be  liable  under  the  laws  for               
concealing deficiencies of the activities of the association.                   
     5. The State Control shall have the right to inspect how the               
funds  allocated  by  the State and local authorities  are  being               
used.                                                                           
                                                                                
     Article 17. Reorganisation                                                 
      1. The association may be reorganised by the resolution  of               
the  general  meeting (conference, congress) of the members.  The               
association may be reorganised in the following ways:                           
     1) by uniting with other associations; and                                 
     2) by dividing the association into several associations.                  
      2. When reorganising the association, its property must  be               
evaluated;  the examiner or auditor must present in  writing  the               
conclusions concerning the property prior to the general  meeting               
of  the  members at which the reorganisation of the  associations               
shall be considered.                                                            
      3.  The  associations  that  are  in  operation  after  the               
reorganisation shall take over the rights and liabilities of  the               
reorganised association. The procedure and time limits of  taking               
over  the  rights  and liabilities shall be set  by  the  general               
meeting of the members.                                                         
      4.  The reorganised associations shall be registered in the               
manner prescribed by laws.                                                      
                                                                                
     Article 18. Liquidation                                                    
      1.  The  association  may be liquidated  on  the  following               
grounds:                                                                        
      1) the time of the duration of the association as specified               
in the statutes has expired;                                                    
     2) the resolution of the general meeting of the members;                   
      3)  the  fact that there are less association members  left               
than established by this Law; and                                               
     4) the court's decision to liquidate the association for the               
violations of law established by the laws.                                      
      2.  The  managing  body or institution  that  has  resolved               
(decided)   to  liquidate  the  association,  shall   appoint   a               
liquidator,  establish  his powers, time limits  of  liquidation,               
procedure  for  stock-taking and taking over  the  property.  The               
procedure  for  appointing the liquidator and  granting  him  the               
powers  in  the case specified in item 3 of Paragraph 1  of  this               
Article must be established in the statutes. After the liquidator               
is  appointed,  the association shall acquire the status  of  the               
association in liquidation: the managing bodies shall be divested               
of  the  powers  to manage the association, and  their  functions               
shall be performed by the liquidator.                                           
      3.  The  liquidation or reorganisation  must  be  announced               
publicly  on  two separate occasions in the manner prescribed  by               
the  statutes; the interval between the two occasions must be  at               
least 30 days.                                                                  
      4. Upon liquidation of the association, the liquidator must               
draw  up the act of liquidation, remove the association from  the               
register, and return the certificate to the registrar who  issued               
it.                                                                             
      5.  When liquidating the association its property and funds               
which  are  left after paying debts shall be used  in  accordance               
with  the  procedure  established in the statutes.  Only  initial               
contributions may be returned to its members.                                   
                                                                                
     Article 19. Final Provisions                                               
      The  associations registered up till now must revise  their               
statutes according to this Law and register them within one  year               
from the promulgation of this Law.                                              
                                                                                
      I  promulgate this Law passed by the Seimas of the Republic               
of Lithuania.                                                                   
                                                                                
                                                                                
Algirdas Brazauskas                                                             
President of the Republic                                                       
                                                                                
Vilnius                                                                         
14 March 1996                                                                   
No.I-1231