Problems of regulation of corporate governance in Lithuania

The dissertation addresses three problems of corporate governance regulation. First of all, Lithuania lacks court practice which would analyse the content of different fiduciary duties. However the subjects regulated by law (in this case members of corporate management bodies) need to know the content of fiduciary duties ex ante. Therefore the author of this dissertation proposes to rely on the Corporate governance code as the secondary source of law. The corporate governance of the State owned enterprise is another area which is analysed. The State is an important shareholder of the entities rendering commercial activities in Lithuania. However the State servants that represent the State as the shareholder do not have direct financial motivation similar to that of the private sector shareholders. Further the State acts both as a regulator and as a shareholder seeking for financial results in regulated sectors (postal services, energy and transportation). The third field examined by the author is the regulation of managerial pay. Reacting to the global financial crisis the European Commission has adopted recommendations on managerial pay. Lithuania did not face problems that the managerial pay is excessive or risk promoting (which was the relevant issue for the European Commission). However Lithuania does not have any traditions on setting managerial pay and the problem is that the members of the board do not receive any salary (or receive only part of the salary) from the company but the salary is paid by the particular shareholder which nominates the board member