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Assessment of Performance Efficiency of Enterprises Producing Electricity in Hydro and Wind Power Plants

Elektros energiją vėjo ir hidroelektrinėse gaminančių įmonių veiklos efektyvumo vertinimas

Author(s): Viktorija Bobinaitė,Aldona Juozapavičienė / Language(s): Lithuanian / Issue: 2/2011

Keywords: renewable energy sources; wind power plant; hydro power plant; efficiency; financial relative indicators; profitability; turnover; and solvency

The system of indicators for assessment of performance efficiency of enterprises producing electricity in hydro and wind power plants is presented in this article. The financial relative indicators are taken from balance and profit (loss) sheets of analyzed enterprises. Three groups of financial relative indicators are calculated. They are as follows: profitability, turnover and solvency. The analysis of profitability showed that because of rapidly increasing costs, the profitability of enterprises producing electricity in hydro and wind power plants had been deteriorating in recent years and for some years had been negative. The analysis of solvency indicators represented that liability of enterprises and risk had increased and liquidity had decreased. Asset turnover indicators told that the efficiency of resources, which were used in activity, had reduced.

Trust of Estate Law and it’s Peculiarities in Lithuanian Civil Law

Turto patikėjimo teisė ir jos ypatumai Lietuvos civilinėje teisėje

Author(s): Justas Sakavičius / Language(s): Lithuanian / Issue: 3/2011

Keywords: trust of estate law; agreement of trust of estate; trust; state and municipal property; derivative proprietary (real) right

This article analyzes the institute of trust of estate. Trust of estate is well known in Common law countries under a term of trust, however in Continental law system countries this legal instrument is not widely spread. Lithuania might be considered as an exception, because trust of estate law in this country is being widely used to manage state and municipal property. However, the law of trust of estate is not very popular for private estate planning. The article presents a genesis of trust of estate law and its main differences from Anglo- American trust. The conclusion is made, that a trust of estate law in Continental law counties and Common law trust, although has a similar form, but in content has substantial differences. Further, a development of Lithuanian trust institute is reviewed. Lithuanian law of trust of estate has developed under the influence of Russian civil law. It has evident similarity to a regulation of trust of estate agreement in Russia. However, there can be found essential differences between Lithuanian and Russian trust law, i.e. Lithuania considers trust of estate institute as proprietary (real) right, meanwhile Russian regulation acknowledges trust of estate as obligatory right. It must be also noted, that lawmaker of Lithuania has adopted Russian trust of estate law without any essential alterations. That is the reason, why Lithuanian trust law feels a lack of proprietary elements. The article suggests possible solutions, how to provide Lithuanian trust of estate law with some proprietary features, so this law would comply with a doctrine of proprietary (real) rights. The article envisages a duality of Lithuanian trust of estate institute, since it has a peculiarity to be applied for public and private property management. This characteristic is not common to other countries, therefore, a the presumption is approached that Lithuanian trust of estate law should be divided into two segregated institutes to regulate management of public and private ownership. This could grant more flexibility for each separate institute and would conform to tendencies of private international trust law. This article deals with some problematic issues of regulation of Lithuanian public and private trust of estate law, and reveals the inadequacy of trust of public estate law to traditional understanding of trust doctrine and discloses drawbacks of trust of private estate law that might predetermine narrow spreading of this institute in private relationship as well. Finally, conclusions are made and particular proposals are suggested to improve regulation of Lithuanian law of trust of estate.

The Aspects of Restructuring Enterprises and the Ways of Implementing the Process

The Aspects of Restructuring Enterprises and the Ways of Implementing the Process

Author(s): Kristina Garškaitė-Milvydienė / Language(s): English / Issue: 4/2014

Keywords: restructuring enterprises; ways and measures applicable for restructuring enterprises; anti-crisis management; organizational, legal, financial and strategic aspects; external and internal factors.

The paper discusses certain aspects of restructuring enterprises and presents different ways and measures applicable for restructuring companies; they are divided and grouped according to certain qualities. In scientific literature, measures for restructuring enterprises are most frequently classified according to organizational, legal, financial and strategic aspects. For assessing the factor of the period, passive and active ways for transforming enterprises are often singled out, where the first one is usually applied when the response to ongoing negative changes is late and actions are limited by operative anti-crisis measures targeted for cutting expenses. When the active way to the transformation of enterprises is employed, the aim of assessing the total situation of the enterprise and newly forming its strategic potential is pursued. The measures for restructuring enterprises classified with reference to different aspects differ in their goals, contents and technologies of implementation. Variety in applicable measures is predetermined by a broad range of causes and goals, and the scope of restructuring enterprises depends on the abundance of sectors to be transformed to the enterprise. Choosing a way to restructuring enterprises is also affected by external and internal environmental factors. In practice, a combination of various ways for restructuring rather than a single one of those) is applied.

Stimulation and Encouragement of Lithuanian Small and Medium-size Enterprises, Improving Public Sector Services for Business

Smulkių ir vidutinių įmonių skatinimas Lietuvoje, tobulinant viešojo sektoriaus paslaugų teikimą verslui

Author(s): Jolita Greblikaitė,Neringa Puškoriūtė / Language(s): Lithuanian / Issue: 1/2014

Keywords: small and medium-sized business; small and medium-size enterprises (SMEs); stimulation of entrepreneurship; factors influencing SMEs; instruments for SMEs and entrepreneurship devevelopment; public sector services for business

In the article potential of small and medium-size enterprises (SMEs), the situation of public sector services important for business are analyzed. There were distinguished instruments and factors influencing and stimulating activity and entrepreneurship in SMEs. The possibilities of improvement the situation of SMEs activity were foreseen. Fulfilled scientific literature analysis, document analysis, situation and comparative analysis revealed that stimulating instruments for SMEs were not properly used in Lithuania. The price, number of procedures, and time of public sector services for business are not motivating and should be improved. Improvement of political and legal environment, favorable financing possibilities, development of e-public services should be made developing favorable environment for Lithuanian SMEs. Learning and education initiatives by responsible institutions could be rather effective instruments for development of entrepreneurial SMEs, better cooperation between business and education sectors. Entrepreneurial SMEs creation depends a lot from new generation and positive view to business and entrepreneurship in society overall.

Predicting Corporate Financial Distress in the Case of Operational program Environment

Predicting Corporate Financial Distress in the Case of Operational program Environment

Author(s): Dagmar Čámská / Language(s): English / Issue: 4/2012

Keywords: financial distress; bankruptcy prediction models; European funds; Czech Republic; Operational program Environment

The aim of this paper is to show if the Czech institutions that distribute European money support healthy businesses. The Czech Republic has € 26.7 billion available for the program period of 2007-2013 from the European funds. There are more than twenty financial support programs. Beneficiaries of different support programs are thoroughly chosen according to criteria. Among the criteria, financial health is also monitored. Predicting corporate financial distress or bankruptcy has been a highly discussed topic in the research as well as business circles since 1960’s. Bankruptcy models provide a quick answer about the company’s financial conditions. They are helpful for business partners, banks as well as for governmental institutions. Cooperation with the ailing partner can be devastating. For the purpose of this paper, Operational Program Environment has been chosen as one of the biggest programs. The Altman formula is selected as a bankruptcy model which should help to fulfil the main aim, because of its worldwide use. The analysis will be done with the use of a database of beneficiaries and the corporate database Albertina, which provides financial data.

WHETHER THE SHAREHOLDERS OF LIMITED LIABILITY COMPANY MAY BE HELD PERSONALLY LIABLE FOR COMPANYS‘ OBLIGATIONS EVEN IF THE GENERAL RULE IS ...

AR RIBOTOS CIVILINĖS ATSAKOMYBĖS JURIDINIŲ ASMENŲ DALYVIAI PAGAL BENDRĄ TAISYKLĘ NEATSAKANTYS UŽ BENDROVĖS PRIEVOLES, GALI BŪTI PATRAUKTI CIVILINĖN ..

Author(s): Gitana Butrimiene / Language(s): Lithuanian / Issue: 4/2005

Keywords: shareholders; limited liability; company; liable; obligations

WHETHER THE SHAREHOLDERS OF LIMITED LIABILITY COMPANY MAY BE HELD PERSONALLY LIABLE FOR COMPANYS‘ OBLIGATIONS EVEN IF THE GENERAL RULE IS THAT THEY MAY NOT? As a general rule the loss of a shareholder of limited liability company is limited to the amount that he had invested in that enterprise. However, there are few exceptions that derive primarily from the principles of reasonability, justice, proportionality and legal certainty. This article analyse those exceptions in the light of legislature and case law of western countries and Lithuania. According the Civil Code of Lithuania the first exception is when shareholders of the company agree to personal liability in the articles of the corporation. The second one is when the company can’t fulfill its obligations as a consequence of fraudulent or criminal acts of its shareholders. In that case the company and its shareholders are jointly liable for the obligations of the company. Moreover, there must be causal link between fraudulent acts of the shareholders and inability to fulfill company obligations. Another issue in determining shareholders liability for the obligations of corporations is whether the obligations of corporation arise from tort (delictual) or contractual claims. Contract creditors are able to investigate fairness of shareholder acts or solvency of the company. However tort claimants haven’t got this possibility. Self-protection is not available to them. Therefore courts must provide more protections to tort claimants than to contract creditors.

Features of Functioning of the New Model of Labour Disputes in Lithuania

Naujo individualių darbo ginčų sprendimo modelio veikimo ypatumai

Author(s): Justinas Usonis,Asta Filimonenkova / Language(s): Lithuanian / Issue: 4/2013

Keywords: labour law; individual labour disputes; labour relations; legal regulation

The new model of hearing of individual labour disputes and implementation of its operation in practice is discussed in the paper. After reform, which came into effect on January 1st, 2013, hearings of individual labour disputes have been delegated to the specialised quasi-judicial institutions, which are set up under the territorial divisions of the State Labour Inspectorate of the Republic of Lithuania. The article examines problems arising in practice after the changes of the Labour Code. The analysis is supported with practices of State Labour Inspectorate and the Courts of the Republic of Lithuania in employment cases since January 1st, 2013. The most relevant questions, such as competences of commissions of labour disputes, problems of process of appeal and further prospects, are discussed.

THE GOAL OF CORPORATE FINANCIAL MANAGEMENT – SUSTAINABILITY REQUIREMENT

ĮMONĖS FINANSŲ VALDYMO TIKSLAS – TVARUMO REIKALAVIMAS

Author(s): Gintaras Černius / Language(s): English / Issue: 1/2013

Keywords: corporate finance; management objective; sustainability

This paper tackles different issues related to the development of the system of objectives of corporate financial management that also includes company’s sustainability. Prior to the recent financial crisis, the formulation of corporate financial management objective focused only on the company’s finances that were reported and measured by using company’s profit and its worth growth ratios. The financial crisis has highlighted an additional aspect of corporate management, i.e., a need for the company, as an object of the owners’ investment, to generate economic benefit for a prolonged period of time. For the purpose of formulation of the corporate financial management objective it is appropriate to refer not to a single objective or a set of same-level objectives; a much more expedient approach is the creation of the so-called objective tree integrating the requirements of the entity’s going concern. The article analyses certain factors affecting financial performance of a company, discusses different ratios indicating the quantitative effect of the factors upon the final results, and shows practical applications for management by means of interference model with a view to ensuring the operations of the company for a sufficiently long period of time.

European Union Public Policy Tendences in the Banking Sector

Europos Sąjungos viešosios politikos tendencijos bankų sektoriuje

Author(s): Vytautas Šenavičius / Language(s): Lithuanian / Issue: 3/2013

Keywords: single supervisory mechanism; bank recovery and resolution; resolution authority; resolution tools; European central bank

Over the financial crisis, the ability of authorities to manage crises both domestically and in cross-border situations has been severely tested. The financial crisis exposed many problems within the global financial system and in the way it was regulated and governed. Financial market regulators did not accurately identified the risk of the banks taken in securitization procedures and did not estimated the losses that could appear in case of the systemic crisis. This led to chaotic bank crisis resolution and extraordinary financial cost suffered by Member States. Hence, the taxpayers were called upon billions of euro to recapitalize the banks in order to prevent the contagion risk. These failures of efficient prudential supervision and lack of regulation in banking restructuring and resolution has led to a need to create a banking union in the European Union which should assure the sufficient capital requirements of the banks and harmonized deposit guarantee scheme, also creation of the single supervisory mechanism and (single) banking recovery and resolution mechanism. Some of the legislative initiatives are agreed, others are under negotiation processes and an important single resolution mechanism proposal is still under in drafting process. As for public policy of the European Union the most important legislative procedures are single supervisory mechanism (SRM) and banking restructuring and resolution (RRD). The said proposals will centralize the prudential supervision in the hands of European central bank and provide harmonized approach on bank rcoery and resolution mechanisms. However, the centralization of the prudential supervision within euro-zone and non-euro zone member states that are willing to join the SSM will have a significant impact on the national public administration systems. Therefore, there is a need of scientific analysis of this phenomena. Hence, the article considers possible positive and negative the implications of the SSM and RRD on national public administration systems and stresses the main problematic issues (efficacy of centralized supervision, funding of the resolution, institutions that could be a resolution authority). The author stresses that in overall the RRD proposal will enforce the structured and also more efficient supervision and would definitely reduce the risk of spending taxpayers’ money in banks’ resolution. As regards to SSM, the author claims that the centralized model could be efficient only in cases where the domestic supervisory institution provides the sufficient know-how for the European central bank.

Bankrupting companies and anti critical management

БАНКРОТСТВО ПРЕДПРИЯТИЙ И АНТИКРИЗИСНОЕ УПРАВЛЕНИЕ

Author(s): Česlovas Hristauskas,Vilma Kazlauskienė / Language(s): Lithuanian / Issue: 33/2006

The article presents two most widespread approaches to viewing bankruptcy: ¨ From the perspective of economists and politicians, companies’ bankruptcy is an inherent element of the market that promotes technical, industrial and social improvement. ¨ From the other point of view, a bankruptcy is damaging not only for a company itself, but also for the whole society as a failing company does not account for its creditors, its employees lose their jobs etc. The problem of a diagnostics of a company is essentially focused on the determination of the fact whether a company is insolvent and what the timing of its bankruptcy case is. There are two aspects of the diagnostics of the bankruptcy question: 1. First of all, it is important for a company itself to have definite criteria that would enable us to judge the approach towards the critical point. 2. Next, a definite criterion is needed in order to define the outer indicators from the market perspective. Most commonly used models of bankruptcy probability forecasting are those of E. Altman which integrate the influence of two, five or seven factors.

Analysis of Capital Structure Influence on Company Activities Financial Indexes

Kapitalo struktūros įtakos įmonių veiklos finansiniams rodikliams analizė

Author(s): Vilma Kuizinaitė,Irena Paliulytė / Language(s): Lithuanian / Issue: 1(17)/2008

Keywords: Capital structure; risk; yield and solvency indicators; influence.

The problems of companies’ insolvency is associated with capital structure, i. e. size of loan capital. It is important for companies to manage loan capital and have no problems of insolvency. Finding overall influence on financial index groups is a complicated task. There is no certainy what index groups have most influence on capital structure and what index groups correlate with capital structure negatively or positively. It is complicated for companies to choose capital structure because they do not know how changes in capital structure influence the results of company activities. The paper analyses the influence of capital structure on financial indicators of enterprises. Manufacturing (SC „Sanitas“, SC „Snaigė“, SC „Pieno žvaigždės“ and SC „Rokiškio sūris“) and service (SC „Pramprojektas“, SC „TEO.LT“, SC „Klaipėdos jūrų laivininkystės kompanija“, SC „Limarko laivininkystės kompanija“) enterprises were analysed and the influence of their capital structure was compared. In the first part of the conception of capital structure and its characteristic indicators were analysed. Correlation between capital structure, financial indicators and risk were also studied. Analysis of capital structure influence on service and manufacturing enterprises yield and solvency indicator results indicated that enterprises working with a bigger amount of loan capital have difficulties in geting good yield indicators, and also reducing long-term and short-term solvency indicators. In both service and manufacturing enterprises there were many cases when a relation between loan and own capital was growing the indicators of selling yield had a tendency to decrease. Capital structure and short-term solvency indicators in service enterprises correlated negatively. Positive correlation with long-term solvency indicators was noticeable. Correlation between risk and capital structure was sufficiently strong because the derived correlation coefficients was big.

COMMERCIAL BANKING ACTIVITY CONCENTRATION

KOMERCINIŲ BANKŲ VEIKLOS KONCENTRACIJA

Author(s): Aušra Kovalčik,Angelė Lileikienė / Language(s): Lithuanian / Issue: 1/2014

Keywords: Commercial bank concentration; bank mergers; commercial banking union; CRD IV, Basel III.

The study shows that the commercial banking market is highly concentrated. Two of the country's commercial banks such as joint – stock companies SEB and DnB owns almost 45 per cent. the three remaining almost 55 percent market. It should be noted that after the merger, joint – stock Siauliai Bank ranks fourth. If joint stock company Siauliai Bank would like to achieve leading position and achieve a successful operation in bank needs addition ~ 7 billion Lt value asset. It should be noted that the joint – stock company Siauliai Bank is still not met the full integration of the portfolio taken over, and the future market position may be weakened, but it seems to have held the position on.

Guidelines On Restructuring Enterprises

Įmonių Restruktūrizavimo Gairės

Author(s): Kristina Garškaitė / Language(s): Lithuanian / Issue: 3/2013

Keywords: restructuring enterprises; principles; stages; forms of restructuring; refinancing; shake-up; reorganization; business plan.

The paper discusses the general principles of restructuring enterprises, submits various interpretations of the concept „restructuring“ and states the content and activities of restructuring enterprises. Restructuring enterprises can be implemented according to certain stages. When negative tendencies for the activity of the enterprise become visible or the current economic and financial indices become unsatisfactory, the issue about a further possibility of proceeding with the activity of the enterprise is considered. Seeking for restructuring the enterprise, first, the expediency and possibilities of the actions taken must be well-grounded. Then, the conception of restructuring and directions for implementing it are fixed; they stipulate the selection of the form of restructuring the enterprise (anti-crisis management instrument). The selection of restructuring depends upon the chosen form of restructurization. The preparation of a business plan, including appropriate elements, serves as an important stage of restructuring the enterprise. The foreseen results of restructuring are assessed with the help of certain methods seeking for the evaluation of its efficacy. The issued (business) plan of restructuring is approved and implemented. This process must be controlled while implementing the plan of restructuring enterprises.

Establishing a Set of Macroeconomic Factors Explaining Variation Over Time of Performance in Business Sectors

Establishing a Set of Macroeconomic Factors Explaining Variation Over Time of Performance in Business Sectors

Author(s): Audrius Dzikevičius,Svetlana Šaranda / Language(s): English / Issue: 2/2016

Keywords: external environment; macroeconomic factors; financial situation; financial indicators; business sector; competition; correlation-regression analysis;

With increasing competitiveness of companies and business sectors in the domestic markets of Lithuania, economic units are frequently confronted with the lack of methods for more detailed analysis of external factors explaining the variation over time of corporate financial indicators. The analysis or forecasting of financial indicators is usually linked with the development of a stock market or undertaken to estimate the probability of bankruptcy. However, there is a lack of studies aimed at identifying links between macroeconomic factors and financial performance indicators and explaining their variation over time. To serve that purpose, the factors of the macroeconomic environment that are most significant for certain economic activities have been identified and analysed to enable explaining the variation over time patterns of corporate financial indicators. The analysis covers economic performance, i.e. financial performance indicators and their links with macroeconomic factors, in 89 business sectors of Lithuania at a three-digit level of NACE 2 ed. The findings of the research indicate that the unemployment level in the country, the volume of export and import and the GDP are the most important macroeconomic factors that can be used to forecast different profitability, financial leverage, liquidity and other financial performance indicators of individual business sectors or companies. The research has not unfolded any significant differences between business sectors therefore the above factors are considered generic macroeconomic factors enabling to explain financial performance indicators of the 89 business sectors. Hence, special attention has to be paid to identifying and analysing specific factors and assessing the causal link. When established, the set of such factors provides a framework for building of a model to forecast business sector financial indicators.

Possibilities of Forensic Accounting and Financial Examination in Investigation of Economic and Financial Offenses

Ekonominių ekspertinių tyrimų galimybės tiriant ūkines ir finansines nusikalstamas veikas

Author(s): Marius Barkauskas,Audrona Spiečiūtė,Gabrielė Juodkaitė-Granskienė / Language(s): Lithuanian / Issue: 2(14)/2016

Keywords: Criminal proceedings; Economic expert studies; Economic and financial offenses; Judicial economic expertise

Straipsnyje apžvelgiama ūkinių ir finansinių nusikaltimų bylose paskiriamų ekonominių ekspertinių tyrimų nacionalinė ir užsienio praktika. Aptariamos ekspertinių tyrimų kompetencijos ir galimybės tiriant atskiras nusikalstamas veikas, pateikiama praktinių pavyzdžių, aptariami tarptautiniai šios srities tyrimai, jų rezultatai ir suformuoti gerosios tyrimų praktikos principai. The article analyses theoretical and practical possibilities of forensic economical examination and presents main problems of its performance. It should be emphasized that this type of forensic examination is based on the knowledge of two branches of sciences such as economics and law; therefore, authors try to clearly determine statuses and competencies of a forensic expert and to present national and international best practices in the sphere. Authors present the forensic practices of Lithuania showing in what financial crimes economical forensic examinations are performed most often, what the main mistakes are in ordering of forensic examinations, what tasks may be solved by forensic experts during the investigation of different types of financial crimes. Authors emphasize that forensic experts in these cases may act only as court (investigator, prosecutor) assistants; hence, they cannot act as independent fact finders. Therefore, an investigator or judge should only ask them to prove or disapprove different versions of crime investigation, etc. All existing situations are presented through practical examples compared with international practices. Also, foreign practices in the sphere of financial crimes are presented and analysed in the article. The main conclusion of the article is based on the survey on practices of forensic economical examinations in three Baltic states, and it states that the main principles of said examinations are the same in all three countries regardless peculiarities of legal regulation; therefore, there are possibilities to exchange practices among forensic experts and law enforcement institutions.

Superficies In Lithuanian Law

Užstatymo teisės institutas Lietuvos teisinėje sistemoje

Author(s): Marius Matiukas / Language(s): Lithuanian / Issue: 81 (3)/2013

Ten years ago the right of superficies (heritable building right) was introduced into Lithuanian legal system. However, the reception of this right could not be deemed successful. The article introduces the origin of the right of superficies as well as its existence in the other legal systems. Analysis reveals that the right of superficies has emerged and exists in legal systems as the only or the primary exception of superficies solo cedit principle. Lithuanian law recognizes superficies solo cedit principle as non-mandatory legal provision. However, in practice, the significant amount of buildings is situated on the land plots of the other owners. Legal relations between the owner of the building and the owner of the land plot are usually regulated under lease contract or servitude even if such relations fall into the definition of the right of superficies. The other reason of unsuccessful reception of the right of superficies is the lack of detailed legal provisions concerning it. Although, model of Dutch opstal was chosen, only the part of relevant legal provisions was transferred into Lithuanian legal system. Moreover, no efforts were made to incorporate this right into Lithuanian legal system and to ensure its coherence with the other rights in rem and contractual rights. Thus, the best solution is the revision of laws concerning exceptions of superficies solo cedit principle and the right of superficies by legislator. In the second part of the article the national legal provisions concerning the right of superficies are analyzed. It should be noted, that many significant aspects concerning the right of superficies are not regulated under the national law. Due to the lack of the detailed national legal provisions and the case-law on the matter, provisions and interpretations in the other jurisdictions are analyzed to provide the best solutions to the problems concerning right of superficies in Lithuanian legal system.

Doctrine of Anticipatory Breach: Concepcion, Rules of Qualification and Legal Impact

Numatomo sutarties pažeidimo doktrina: kvalifikavimo pagrindai ir teisinis poveikis

Author(s): Laurynas Didžiulis / Language(s): Lithuanian / Issue: 55 (1)/2007

One-sided termination of contract is one of the most sophisticated and hardest solving problems in contract law, which cause some difficulties in obligational relationship practice for both sides. The Civil code of Republic of Lithuania empowers a party to terminate the contract anticipating fundamental breach of contract. It is new, but very mysterious category in Lithuanian civil law, which is still silent at today’s national case law. There is a purpose to show, in accordance with the examples of practice of contractual relationships, that under the veil of doctrine of anticipatory repudiation, hiding very strong remedy for protection of creditor rights in this Article. The doctrine prospective expands defensive curtain for parties of contract, because it is sacred to the preventive defence of promise contractual rights and legal interests unwaiting for the lapse of time. The impact of the Article 6.219 of Civil code shows in purpose to give a chance to party to use the ultimate remedy in contract law – cancellation of contract, anticipatory breach equated to factual breach of contract in that case ostensibly making legal fiction – that time of performance lapsed. The doctrine of anticipatory breach is also blocking the unfair acts of debtor when he intends to make parallel negotiations with third persons for the same subject-matter.

PARTICULARITIES OF PAYMENT FOR ANNUAL LEAVE IN LITHUANIA

TIESIOGINĖS DARBUOTOJO DELIKTINĖS ATSAKOMYBĖS TAIKYMAS LIETUVOJE

Author(s): Martynas Antanaitis / Language(s): Lithuanian / Issue: 2/2018

Keywords: right to paid annual leave; transfer of leave; leave pay; late payment of leave pay; reimbursement for unused annual leave;

Annual leave is granted to employees in order for them to rest and regain their efficiency at work. Article 49 of the Constitution of the Republic of Lithuania provides that every employed individual has the right to paid annual leave. For this right to be implemented, the employee should be paid for this period of leave.On 1 July 2017, the new Labour Code of the Republic of Lithuania came into effect. It not specified, how this right to annual leave should be implemented, but also provided for a new legal term – “leave pay” (lith. atostoginiai). This paper seeks to assess the peculiarities of payment for the annual leave after the reform of Lithuanian labor law taking into account the case law. It analyses component parts of leave pay, the rules of granting, prolonging and transferring of leave, as well as possibility of reimbursement for unused annual leave.This research was conducted using the usual methods for this type of research: systemic and document analysis, linguistic, logical and comparative. The paper takes into account the case law of the European Court of Justice interpreting the provisions of the Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organisation of working time.

ENSURING EFFECTIVE RESTRUCTURING PROCEEDINGS IN THE IMPLEMENTATION OF THE RESTRUCTURING AND INSOLVENCY DIRECTIVE

VEIKSMINGO RESTRUKTŪRIZAVIMO PROCESO UŽTIKRINIMAS ĮGYVENDINANT RESTRUKTŪRIZAVIMO IR NEMOKUMO DIREKTYVĄ

Author(s): Audronė Balsiukienė,Mykolas Kirkutis,Vigintas Višinskis / Language(s): Lithuanian / Issue: 1/2021

Keywords: restructuring; European Union law; insolvency law; Restructuring and Insolvency Directive;

This article analyzes the problems of ensuring the effectiveness of restructuring proceedings when implementing the Restructuring and Insolvency Directive into the law of the Republic of Lithuania. It examines the economic, social, and legal objectives of restructuring proceedings, and how this process can preserve viable companies operating in the market which encounter issues of solvency. The goals of the Restructuring and Insolvency Directive and the need to harmonize restructuring proceedings in the European Union are also assessed.This article additionally focuses on analyzing elements of ensuring the effectiveness of the restructuring proceedings set out in the Restructuring and Insolvency Directive: essential contracts, new and interim financing, suspension of individual enforcement measures, and the confirmation of a restructuring plan. It analyzes how these elements of the restructuring proceedings can help to ensure the preservation of viable companies and the continuity of activities during restructuring proceedings.Finally, this article also examines the proposed amendments to the Law on the Insolvency of Legal Entities regarding the implementation of the Restructuring and Insolvency Directive, and considers whether the proposed amendments will increase the efficiency of restructuring proceedings.

THE PLACE OF PREVENTIVE RESTRUCTURING IN THE INSOLVENCY LEGAL SYSTEM

PREVENCINIO RESTRUKTŪRIZAVIMO VIETA NEMOKUMO TEISĖS SISTEMOJE

Author(s): Audronė Balsiukienė / Language(s): Lithuanian / Issue: 1/2023

Keywords: preventive restructuring framework; pre-insolvency proceedings; early warning; StaRUG;

European Commission has performed a review of Member States’ insolvency law systems, with the conclusion that there are still several Member States where restructuring is not an option for companies facing financial struggles without being insolvent. Furthermore, there are more legal differences regarding regulation in the insolvency area, which has a negative effect for the smooth development and efficient performance of the EU domestic market. As a result, the European Directive on restructuring was introduced with the aim of aligning insolvency law in Member states. One of the goals of the Directive on restructuring is the creation of preventive restructuring systems, but the document does not present a definition of preventive restructuring nor a guideline for the implementation of these systems. This article aims to describe the key features and attributes of the preventive restructuring system and to analyse the conditions of the application of preventive restructuring. In this article, the preventive restructuring system is compared with pre-insolvency and informal restructuring procedures, defining their similarities, differences, and advantages. Lithuania has implemented part of the provisions of the Restructuring Directive by legislating changes in the insolvency law of Legal persons, and a preventive restructuring system was established by a by-law. Based on the conclusions derived in the research regarding the concept and essence of the preventive restructuring system, this article aims to answer the question of whether current legislation will allow the goals of Directive to be achieved, and whether the legislation in Lithuania establishes a proper preventive restructuring system.