Lithuanian Squeeze-Out Law Entered Into Effect

On 1 January 2005 amendments to the Law on Securities Market of the Republic of Lithuania came into force, establishing legal grounds for the "squeeze-out" of minority shareholdings (i.e. the mandatory sale and purchase of the small shareholders’ shares).

The shareholder of a company listed on the official list or the current list of a stock exchange registered in the Republic of Lithuania, having acquired (acting independently or in concert with other persons) shares representing not less than 95 percent of the total votes at the general meeting of shareholders of the issuer, has a right to require that all the remaining shareholders sell the voting shares to the buying-up shareholder.