All companies registered with the Estonian Register of Economic Activities have to confirm the accuracy of registered data by 15 April.

When approving the annual report, reviewing the terms of office of supervisory and management board members and auditors, and extending these, if necessary, is advisable.

Our experience shows that many management board members are still performing their duties on the basis of an employment contract instead of a proper management board member agreement.

Two judgements of the Civil Chamber of the Supreme Court made in December 2004 deal with the regulation of share takeover bids, an issue that has been a subject of disputes to date.

In the beginning of 2006 the Estonian Minister of Justice initiated a new activity plan, which sets clear goals in thirteen domains of commercial law based on feedback from entrepreneurs in order to simplify a number of operations and thus increase legal certainty and economic turnover in Estonia.

On 1 January 2006 extensive amendments to the Estonian Commercial Code (hereinafter: <B>CC</B>) entered into force, which <I>inter alia</I> deal with the foundation of a company; the principles regarding the general meeting of shareholders of a company and meetings of the management board and the supervisory board; the liability of members of management bodies; remuneration of members of management bodies; the pledging of shares of a private limited company; and the procedure for transformations

The Corporate Governance Recommendations (hereinafter „Recommendations") are intended first and foremost for the companies whose shares have been admitted to trading on a regulated market operating in Estonia (issuers, except for investment funds registered as public limited companies).