On 20 September 2007 a draft Law on Unfair Business-to-consumer Commercial Practices was registered with the Lithuanian Parliament. The draft law aims at implementing the provisions of Directive 2005/29/EC of the European Parliament and of the Council as of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) 2006/2004 of the European Parliament and of the Council (“Unfair Commercial Practices Directive“). The adopted law will protect consumers’ economic interests from unfair business-to-consumer commercial practices before, during and after a commercial transaction in relation to a product. It is not intended to be applicable to unfair commercial practices violating the interests solely of competitors or which are related only to the transactions of the subjects of commercial practices. In establishing whether a particular commercial practice is unfair it will be estimated in respect of an average consumer that the draft law defines. The State Consumer Rights Protection Authority and Competition Council will be entrusted with the supervision of the application of the law.

      For further information please contact Irmantas Norkus (irmantas.norkus@norcous.lt), Managing Partner at Norcous & Partners in Vilnius.

      On 21 September 2007 three decisions of the Lithuanian Arbitration Association adopted on 9 June 2007 came into force: on the approval of the Regulation of the Procedure of International Commercial Arbitration, the Regulation of the Procedure of National Commercial Arbitration, the Rules of Arbitration Fees and Costs and from 28 September 2007 the Regulation of the Procedure of Mediation and Conciliation came into force. These regulations are applicable to the activities of the Vilnius Court of Commercial Arbitration. The first two regulations govern the settlement of national or international commercial disputes by arbitration in cases where the parties to the dispute either agree in writing to settle their disputes at the Vilnius Court of Commercial Arbitration or agree to settle their disputes by arbitration in accordance with the regulation. The regulations establish the wording of an arbitration clause which if included in the parties’ agreement binds the contracting parties. The parties are also free to waive the application of these regulations. The regulations also explain relevant definitions, establish jurisdiction of disputes, composition of arbitral tribunal, conduct of arbitral proceedings, making awards, enforcement of arbitral awards and conduct of arbitral proceedings in Klaipeda Maritime Court of Arbitration. The size, calculation, distribution of the arbitration fees and other conditions regarding costs are set out in the Rules of Arbitration Fees and Costs (e.g. registration fee is 400 EUR for international disputes, 200 EUR for national disputes and the administration fee depends on the amount of the claim but will be at least 1 000 EUR). Mediation and conciliation procedure is organized by the Vilnius Court of Commercial Arbitration in accordance with the adopted Regulation of the Procedure of Mediation and Conciliation in cases where parties to the dispute wish to resolve the dispute without the state court or a court of arbitration.

      For further information please contact Irmantas Norkus (irmantas.norkus@norcous.lt), Managing Partner at Norcous & Partners in Vilnius.

      On 30 August 2007 a draft new Law on Cross-border Mergers of Limited Liability Companies was introduced for reading in the Lithuanian Parliament. The draft law was induced by the 10th Company Law Directive (2005/56/EU) on cross-border mergers of limited liability companies which obliges member states to bring into force the laws, regulations and administrative provisions necessary to comply therewith by 15 December 2007. The draft law aims at regulating the mergers of limited liability companies from different states thereby eliminating legal and administrative difficulties arising from the disparities in regulation of the merger procedures in different states. The draft law regulates the conditions of a cross-border merger, public announcement requirements, security of the fulfillment of the involved companies’ obligations etc. The implementation of the law will necessitate the adoption of a new law regulating employee participation in making decisions and supplementation of the Regulations of the Register of Legal Entities.

      For further information please contact Irmantas Norkus (irmantas.norkus@norcous.lt), Managing Partner at Norcous & Partners in Vilnius.