LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Vygintas Kuprys, WALLESS
6.3 Regulation of Rents or Lease Terms Rents and lease agreements are freely nego - tiable in general, provided they do not infringe certain imperative norms established in the Civil Code. Certain market standards of commer - cial leases are not obligatory but are voluntarily applied by the largest market players. 6.4 Typical Terms of a Lease The typical terms of a lease of business prem - ises are outlined below. • The maximum term of any lease may not exceed 100 years. • The tenant is usually responsible for daily maintenance and current repairs of the leased property and the landlord is responsible for capital repairs of the property. • The rent payment is typically paid every month for the upcoming month in advance. 6.5 Rent Variation The rent payable is usually reviewed and increased every year according to the index chosen by the parties. The Lithuanian consumer price index (CPI) or the Lithuanian CPI harmo - nised under the methodology applied across other EU member states (Harmonised Index of Consumer Prices or HICP) are used in most commercial leases. 6.6 Determination of New Rent As mentioned in 6.5 Rent Variation , the rent is typically increased each year as a result of indexation. No additional consent for any rent increase is usually required from the tenant. If either party wishes to change or increase the rent, it must follow specific procedures and rules established in the lease agreement. In the event of the absence of any such procedure and con - sent from the other party, the rent may only be
• a supervisory council; • a board (of directors); and • a CEO.
It is not obligatory to form a supervisory coun - cil and/or board in a private limited company. Supervisory councils are rarely established in private limited companies but boards are formed quite often, particularly in larger private compa - nies. Unlike existing practice abroad, in Lithuania a board does not have direct executive powers. Instead, it is responsible for the strategic man - agement of the company, the election of the CEO and some other decisions related to the company (decisions to invest in other compa - nies, etc). Additionally, only natural persons can be members of a board. 5.6 Annual Entity Maintenance and Accounting Compliance Each entity is required to have a CEO. Account - ing services can be outsourced. The annual enti - ty maintenance costs comprise of the salary of the CEO and the costs for accounting services and vary for each company. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Under Lithuanian law, a person, company or oth - er organisation is entitled to occupy and use real estate for a limited period of time under lease or gratuitous lease agreements. 6.2 Types of Commercial Leases There are no different types of commercial leas - es in Lithuania.
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