| Abstract [eng] |
This master thesis analyses the issues related to the company’s share buyback institute in unlisted companies, which came into force on 30 November 2022 and which is established in Article 461 of the Law on Companies of the Republic of Lithuania. The legal regulation of foreign countries – Denmark, Finland, Sweden, the Netherlands and Germany, the conclusions drawn by legal scholars, as well as the interpretations given in both foreign and Lithuanian case law are used to identify the problems and provide possible solutions. The first part of the work focuses on the problematic aspects of the prerequisites for the initiation of a company’s share buyback, as set out in Article 461 of the Law on Companies. The second part of the thesis examines the procedural model of the company’s share buyback as provided for in the law and identifies its weaknesses, which do not allow the company's shareholders to implement the company’s share buyback in the most efficient way. Finally, the third part of the thesis discusses the fair price of the shares to be bought back and its determination. In addition to presenting the findings of the author's research and articulating author‘s stance on the issues discussed, the conclusions of the thesis contain recommendations addressed both to the persons who apply and interpret the law as to how a certain problem related to the company’s share buyback should be approached, and also proposals to the legislator, suggesting in which way the legal regulation of the institute provided by the Article 461 of the Law on Companies should be amended. |
