Company law Lithuania: Entering a new era of corporate structures with redeemable shares

On 30 June 2025, the Lithuanian Parliament adopted amendments to company law which aim to enable more efficient company management, more flexible forms of raising capital and more modern investment structures. The changes include the introduction of redeemable shares and changes to the board election process. The Ecovis experts explain the new rules.

New opportunities for companies: redeemable shares legalised

Redeemable shares are issued for a limited time, after which the company must buy them back. This model has long been used in other jurisdictions, especially in common law countries, and has frequently been utilised in Lithuania through shareholder agreements on share buybacks.

The amendments legalise financial assistance for acquiring company shares. A company will now be allowed to grant a loan or secure obligations for such purposes (with some restrictions).

Please feel free to contact us for strategic advice and expert support in implementing these changes in corporate law.

Loreta Andziulytė, partner and attorney at law, ECOVIS ProventusLaw, Vilnius, Lithuania

Other changes

Growing significance of management bodies

Certain decisions, previously within the exclusive competence of the shareholders’ general meeting, may now be delegated to the board or CEO (if no board exists).

Changes to the board election procedure

The right of a minority shareholder holding at least 10% of votes to demand the re-election of the entire board when individual board members resign is abolished. Additionally, a company’s collegial (supervisory board or board) or its members may start their duties not only immediately after the meeting/session that elected them, but also at a later date specified in the resolution.

These measures are designed to facilitate the growth of startups, support investment transactions, and strengthen companies’ ability to compete in the European capital market.

For further information please contact:

Loreta Andziulytė, partner and attorney at law, ECOVIS ProventusLaw, Vilnius, Lithuania
Email: loreta.andziulyte@ecovis.lt