Public Institutions and Associations will have to present annual financial documents to the Register

05.02.2015 Public Institutions and Associations will have to present annual financial documents to the Register

The Government of the Republic of Lithuania has prepared draft amendments to the Law on Public Institutions and the Law on Associations (the “Laws”), by which it suggests to obligate public legal entities of these forms to provide the Register of Legal Entities with sets of annual financial statements for each financial year and, in case an audit has been performed or must be performed according to laws, sets of audited annual financial statements together with the auditor’s reports and annual reports.

Commenting on the draft amendments to the Laws, Mantas Gofmanas, Senior Associate at TGS Baltic, says that according to the currently effective regulation, annual reports of legal entities of the above-mentioned forms for each financial year have to be presented to any persons requesting them (in case of public institutions, they also must be submitted to the Register of Legal Entities and published on the institution’s website, if any). The draft amendments to the Laws would not change this regulation, but they would introduce an additional duty to present the above-indicated documents to the Register of Legal Entities.

Mantas Gofmanas is convinced that the draft amendments to the Laws in fact bring uniformity to the procedure of making annual financial documents public both in case of these public legal entities (i.e. associations and public institutions) and in case of other private legal entities (private limited liability companies, public limited liability companies, etc.).

If the Seimas of the Republic of Lithuania adopts the amendments to the Laws, they should come into effect on 1 June 2015, whereas provisions regarding submission of annual financial documents to the Register of Legal Entities would apply to submission of annual financial documents for reporting periods starting on 1 January 2015 and later.