Corporate law

We help clients establish companies, resolve shareholder disputes, address director liability, change management structures, and wind down operations. We provide advice, prepare documents, negotiate, and represent clients in court.

Legal services for companies and shareholders

We advise and prepare documents on the formation, governance, and operation of legal entities. We also help clients carry out reorganizations, changes of legal form, and spin-offs in compliance with the law.

When you may need a corporate attorney

A business partner is blocking decisions

Shareholder deadlock can leave a company unable to make valid decisions. We assess what the articles of association allow, whether a meeting can be called or a judicial investigation of the company’s activities sought, and whether an ownership exit is appropriate.

You want to leave the business

Selling shares involves more than agreeing on a price. The transfer procedure in the articles of association, other shareholders’ rights of first refusal, the required legal form, and share-accounting entries all matter. Without the necessary steps, the buyer does not become a shareholder.

A director is facing a damages claim

Claims against current or former directors turn on whether their decisions complied with their duties of care and loyalty. Promptly gather documents showing how and in what circumstances the decision was made.

You are starting a business with a partner

You need to choose a legal form and agree on capital, management, and ownership shares. The rules included in the articles of association and shareholders’ agreement at this stage can determine the outcome of later disputes.

Businesses are being combined or divided

Reorganizations, spin-offs, and changes of legal form follow prescribed procedures, including creditor notifications and deadlines. A procedural error can delay the entire transaction or leave uncertainty over assets and liabilities.

You want to close a company

A company is formally wound up through liquidation, with creditors and employees paid. If it cannot meet its obligations, we assess whether there is a duty to initiate insolvency proceedings.

What to know before making a decision

There is a limited time to challenge a corporate decision. The Civil Code sets a three-month limitation period for challenging decisions of a legal entity’s bodies, starting when you learned, or should have learned, of the decision, unless another law provides a different period or procedure. After the deadline, even a defective decision will generally remain in effect. Act promptly when you receive meeting minutes or a meeting notice.

A shareholders’ agreement does not resolve every issue. It binds only its signatories, so a breach does not automatically invalidate a corporate decision. The injured party’s remedies remain contractual, such as penalties or damages. Key rules on voting, share transfers, and deadlock resolution should also be reflected in the articles of association.

Limited shareholder liability is not absolute. Under the Civil Code, an owner may bear secondary liability if their bad-faith conduct leaves the company unable to meet its obligations. A member of a management body is liable for losses caused by breaching the duties to act honestly, reasonably, and loyally. The Law on Insolvency of Legal Entities requires a director to inform the owners immediately when the company becomes insolvent and propose steps to restore solvency. If those steps fail, insolvency proceedings must be initiated. Delay generally increases personal exposure.

Corporate law: common questions

Can a shareholder be forced out of a company?
Not by a shareholder vote alone. A court order is required. Before applying, review the articles of association and gather evidence of actual harm to the company, rather than disagreement alone. The Civil Code allows a compulsory share sale: a court may order an owner to sell their shares to the claimant if their conduct conflicts with the company’s objectives and there is no reason to expect it to change. This is a last resort. The reverse remedy is also available: if another shareholder’s conduct prevents you from properly exercising your rights, you may seek an order requiring that shareholder to buy your shares.
Is a director personally liable for company debts?
Generally, no. The company is responsible for its own obligations. A director’s personal liability arises from their conduct, not merely from the existence of a debt. The Civil Code requires members of management bodies to act honestly, reasonably, and loyally toward the company and to compensate it for losses caused by breaches of those duties. Delay in responding to insolvency is assessed separately. The Law on Insolvency of Legal Entities imposes specific duties on directors and liability for losses caused by failing to fulfill them.
How long does it take to liquidate a company?
There is no single timeline. The duration depends largely on settling liabilities, rather than preparing documents. Disputed creditor claims and tax issues usually take the longest, so address them before deciding to liquidate. The procedure itself is defined: the general meeting approves liquidation by a qualified majority, a liquidator is appointed, information is filed with the Register of Legal Entities, creditors and employees are notified and paid, a liquidation report is prepared, and the company is deregistered.
What if another shareholder refuses to provide company information?
Shareholders have a right to company documents and information. Start with a written request to the company. If it is not fulfilled, consider calling a meeting. Shareholders holding at least one-tenth of the votes may initiate a meeting, unless the articles set a lower threshold. An annual general meeting must be held within the period set by the Law on Companies after the financial year ends. That deadline has changed, so check the rule applicable to the company’s year-end. If information is still withheld, shareholders holding the statutory share of capital may seek a judicial investigation of the company’s activities. A claim for disclosure of documents is another option.
Does a share sale agreement need to be notarized?
Not always. Check the required form before signing. The Civil Code requires notarization of certain sales of shares in a private limited liability company, depending on the percentage transferred and the price. The transaction also requires the appropriate share-accounting entries: entries in shareholders’ personal securities accounts or, for certificated shares, an endorsement, together with updated shareholder records.

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AddressVilniaus g. 64A, Kaunas, LT-44289
Phone+370 682 34336Emailinfo@advokatasvasiliauskas.lt
Office hoursMon–Fri: 9:00 a.m.–5:00 p.m. · Sat–Sun: closed