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Change of control rules tested in Lithuanian Supreme Court

16.04.2008

The Supreme Court of Lithuania recently decided a case of R.J. and T.R.V. AB “Spauda” on the annulment of the decision of the general shareholders meeting.

The panel investigated the obligation of shareholders to notify the Securities Commission and the issuer of the loss or acquisition of a shareholding portfolio.
The court noted that when a shareholder notifies of the changed holding, but fails to fully execute the requirements of the notification procedure it should be assessed whether the imperfection of a notification was essential, i.e. essentially misrepresented the content of the notification. The court pointed out that any minor inaccuracy in a notification would not give ground for declaring the notification inappropriate, if such inaccuracy did not affect the awareness of shareholders and evaluation of the accomplished redistribution of the shareholders' votes.

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