Since limited liability partnership is one of the most common legal forms of private equity and venture capital investment activity, the outdated Lithuanian Law on Partnerships (the Law) was reviewed and amended some years ago to adjust its provisions to the structuring needs of venture capital and private equity funds. The amended Law still shows its drawbacks in practice, such as requirements for public disclosure of the identities of limited partners and the investment amounts they are committed to, disclosure of confidential internal management procedures, distribution waterfall, and so on. The second round of amendments to the Law aimed at addressing these obstacles has been prepared and is expected to be approved in the second quarter of 2017. One key change expected is the possibility to keep some competitive and confidential information undisclosed to the public by entering into double layer agreements, ie:
- a limited partnership agreement (in Lithuanian: bendrijos veiklos sutartis) which should be notarised and filed with the Company Register and
- a partnership agreement (in Lithuanian: dalyvių sutartis) which would be entered into simple written form with no notarisation and no registration requirements.