Lithuania's Ministry of Transport and Communications together with independent consultants, after analysing all legal and financial options, submitted a proposal to set up a new corporate group formed from companies of the transport sector, the ministry reports.
Rimantas Sinkevičius
© DELFI / Tomas Vinickas

The corporate group is proposed to be managed by a joint stock holding company where 100 percent of shares belong to the state and by trust law are managed by the Ministry of Transport and Communications.

These proposals were prepared in accordance with guidelines of the Organization for Economic Cooperation and Development (OECD), Corporate Governance Guidance prepared by Baltic Institute of Corporate Governance, the Corporate Governance Code for listed companies approved by the Nasdaq OMX Vilnius and the best national and international practices.

"Such structural adjustments would have a positive impact on the transport sector as a whole. It will facilitate the conditions for increasing operational efficiency, long-term value and focus on maximizing the returns on shareholder's, i.e. state's, shares," said Minister of Transport and Communications Rimantas Sinkevičius.

According to the minister, the group of state enterprise undertakings will be given more flexible possibilities for financing from other sources rather than the state budget, a unified management, and control system would be introduced with the application of the corporate governance guidance. This would enable the Ministry of Transport and Communications to simplify the management of companies under its regulation as well as make the management more efficient.

The new corporate group would be managed in accordance with the Law on Companies of Lithuania, rather than the existing sectoral legislation. During the first phase of group establishment, the shares of the joint stock companies under the Ministry of Transport and Communications would be placed into the group.

It is important that the ministry will not be the direct operator - a new corporate group formed from undertakings of the transport sector will be managed by professional managers. It will depoliticize the core policy maker's i.e. the ministry's, role.

During the structural transformations, both the joint stock companies under the regulation of the Ministry of Transport and Communications as well as other companies could become the undertakings. With the change of legal status of state enterprises, they would be part of the aforementioned group.

Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Nausėda couldn't risk losing to Šimonytė in Lithuanian conservatives' primaries - analyst

Economist Gitanas Nausėda withdrew from the race for the nomination as the Homeland...

Šimonytė, Ušackas seek TS-LKD support for presidential bid, Nausėda to run as independent

MP Ingrida Šimonytė and diplomat Vygaudas Ušackas said on Monday they would seek the nomination...

President proposes tougher penalties for misleading advertising

Lithuanian President Dalia Grybauskaitė has proposed stepping up measures aimed at protecting...

Ušackas to seek Lithuania's TS-LKD support for presidential bid

Lithuanian diplomat Vygaudas Ušackas says he will seeks the country's opposition conservative...

Seimas endorsed the Strategy for the Demographic, Migration, and Integration Policy for 2018–2030

In consideration of the adverse effects on the national economy, social welfare system, as well as...