REPUBLIC OF LITHUANIA

LAW ON

ASSOCIATIONS OF OWNERS OF MULTI-APARTMENT RESIDENTIAL BUILDINGS

AND OTHER TYPES OF BUILDINGS

21 February 1995 No I-798

(As last amended on 12 April 2012 – No XI-1967)

Vilnius

CHAPTER ONE

GENERAL PROVISIONS

Article 1. Purpose of the Law

1. This Law shall define the method of management of joint ownership of owners of

multi-apartment residential buildings and other types of buildings in the case of the

establishment of an association, govern the establishment, management, operation,

reorganisation and liquidation of an association, and the rights and obligations of owners of

apartments and other premises/buildings as members of an association.

2. This Law shall also define the rights and obligations of owners of multi-apartment

residential buildings and other types of buildings, who have not declared their intentions

regarding the establishment of an association and their involvement in its activities, related to the

management, use and maintenance of the joint ownership and the procedure for their exercise

and fulfilment.

3. This Law shall apply to associations established for the purpose of management, use

and maintenance of objects of joint ownership, which are not regulated by special laws defining

individual legal forms of legal persons.

Article 2. Definitions

1. Administration of an association shall mean the organisation of common object

management and handling of economic and financial issues by the management body of an

association.

2. Representative of the members of an association shall mean a natural person

elected and authorised by the members of an association of the same building or part thereof to

act for the members of the association who have elected him.

3. Inventory of common objects shall mean a document of a standard form, as

approved by an authority authorised by the Government, specifying the type, purpose, properties

and location of a common object in a multi-apartment residential building or another type of a

building/buildings, owners of apartments or other premises/buildings, associated with the object,

and other details characterising the object.

4. Objects of joint ownership shall mean common premises within the building, main

building structures, common mechanical, electrical, sanitary, technical and other installations

and equipment, also other property held by owners of multi-apartment residential buildings or

other types of buildings by the right of joint ownership.

5. Flat shall mean a part of a multi-apartment building consisting of one or several

rooms and other premises detached from the common premises, other flats or non-residential

premises by partition structures.

6. Owner of a flat and other premises shall mean a natural or legal person owning a

flat or other premises and holding a part of an object of joint ownership by the right of joint

ownership.

7. Association of owners of multi-apartment residential buildings or other types of

buildings (hereinafter: ‘the association’) shall mean a non-profit legal person with limited civil

liability established to use, manage and maintain objects of joint ownership or develop the same

for the needs of the members of an association or to meet other general needs.

8. Multi-apartment building shall mean a residential building of three or more flats. A

multi-apartment building may also have non-residential premises, including those for

commercial, administrative, public catering, etc. purposes.

9. Residential building shall mean a building at least half of the useful area of which is

taken by residential premises.

10. Another type of a building shall mean a building personally used for recreational,

creative (creative workshop) or domestic (garage, etc.) purposes, which is owned by three of

more owners of flats and other premises by the right of joint ownership, also detached single-

family houses or duplex residential buildings having a common plot and/or local engineering

networks.

11. Other premises shall mean non-residential (administrative, commercial, etc.)

premises within a multi-apartment building, formed and registered in the Real Property Register

as an individual object of ownership, also premises personally used for recreational, creative

(creative workshop) or domestic (garage, etc.) purposes, formed and registered in the Real

Property Register as an individual object of ownership.

12. Building shall be used in the meaning defined by the Law of the Republic of

Lithuania on Construction.

13. Building renovation shall mean refurbishment (modernisation) of a building and

renovation of common objects within the building through the fulfilment of the obligatory

requirements for the use and maintenance of structures.

14. Building modernisation shall be used in the meaning defined by the Law of the

Republic of Lithuania on Construction.

15. Common objects within a building shall include the following:

1) common structures of a building: the main structures of the building, including

foundations, all load-bearing walls and columns, exterior walls and interior partitions detaching

common premises from flats and other premises owned by individual owners, floors, the roof,

architectural façade elements, common projecting or recessed balconies, exterior (façade)

structures of other projecting and recessed balconies, exterior doors, staircase structures, exterior

stairs, pitches and roofing elements);

2) common engineering systems of the building: common mechanical, electrical, gas,

heating and sanitary fixtures and other equipment of the building, including the distribution

board of the building, heating unit, heat and hot water supply pipes and radiators, water supply

and sewerage pipes and towel dryers;

3) common premises within the building: staircases, halls, corridors, galleries, attics,

storerooms, sub-basements, basements and other premises, provided that these are not owned by

individual owners;

4) local engineering networks within the meaning defined in the Law of the Republic of

Lithuania on Construction;

5) common plot, meaning a plot used and/or managed by owners of multi-apartment

residential buildings or other types of buildings by the right of joint ownership or on other

grounds defined by laws.

16. Renovation of common objects within a building through the fulfilment of the

obligatory requirements for the use and maintenance of structures (hereinafter: ‘the

renovation of common objects’) shall mean construction works ensuring the restoration of the

physical properties and energy performance of a building and/or its engineering systems.

17. Room shall be used in the meaning defined by the Law of the Republic of Lithuania

on Construction.

Article 3. Legal Status of an Association

1. An association shall be a non-profit legal person with limited civil liability. The legal

form of this legal person, as defined by this Law, shall be an association.

2. An association may have and acquire only the civil rights and duties which are not in

conflict with laws, the statutes of an association and the objectives of its activities.

3. The following shall be prohibited to an association:

1) use of the funds of an association for the settlement of legal disputes between the

management body and the members of an association concerning management of an association

and for purposes other than defined by the statutes of an association;

2) granting of loans, provision of a guarantee or security, mortgage of the assets of an

association or ensuring the fulfilment of obligations of other persons in other ways.

4. The activities of an association shall be mutatis mutandis governed by the provisions

of Chapter XIV of Book Four of the Civil Code of the Republic of Lithuania (hereinafter: ‘the

Civil Code’) regulating simple administration of assets.

5. The name of an association shall include a word ‘association’ referring to the legal

form of this legal person.

6. An association shall have its bank accounts in banks registered in the Republic of

Lithuania.

7. Documents of an association which are used in its relations with other entities shall

contain information specified in Article 2.44 of the Civil Code.

8. The office of an association shall be established in a building managed by that

association.

9. The functions of an association shall be defined by its statutes taking into account the

characteristics of the objects managed by that association.

CHAPTER TWO

ESTABLISHMENT AND REGISTRATION OF AN ASSOCIATION

Article 4. Basis for the Establishment of an Association

1. The objective of the establishment of an association is the implementation of the

rights and obligations of owners of flats and other premises/buildings, related to the

management, use and maintenance of objects of joint ownership, whether owned by such owners

or newly created.

2. An association shall be established by the owners of flats and other premises in one

or a few multi-apartment buildings and of objects of joint ownership in other types of buildings.

No more than one association shall be allowed in one building, except where a certain portion of

the building has individual engineering network inlets and autonomous engineering systems.

3. The promoters of an association shall be owners of flats and other premises/buildings.

The decision to establish an association shall be taken by the founding meeting of owners of flats

and other premises/buildings. The promoters of an association shall become the members of the

association established.

4. As regards the establishment of an association, the right of initiative shall be granted

to each owner or a group of owners of flats or other premises/building, the developer of the

building or his authorised representative, the representative of the administrator of common

objects in the building appointed according to the procedure defined by the Civil Code or a

person authorised by a municipal executive authority.

5. Before the planned date of the founding meeting of an association, the initiators of

the establishment of an association shall produce a list of owners of flats and other

premises/buildings, including their signatures, who favour the establishment of an association.

Owners of flats and other premises/buildings, who have not given previously declared in writing

their intentions concerning the establishment of an association, shall have the right to express

their opinion in writing at the founding meeting of the association.

6. Where an association is established in a multi-apartment building the common

objects in which are administered by an administrator of common objects appointed according to

the procedure defined by the Civil Code, the initiators of the establishment of an association,

prior to the planned date of the founding meeting, shall give a 30 day written notice to the

administrator of common objects in the building and/or the developer of the building informing

of the planned date of the founding meeting of an association. The administrator of common

objects shall provide the initiators of the establishment of an association with the inventory of

common objects and the list of owners of flats and other premises, including their addresses, no

later than within 15 days of the receipt of the notice.

7. The administrator of common objects, a person authorised under a joint venture

contract or the developer of the building shall, within 30 days of the registration of the

association, transfer to the association established the accumulated and unused funds of the

owners of flats and other premises/buildings, earmarked for the renovation of the

building/buildings and other general needs, along with the available construction and technical

inventory documents of the building/buildings.

8. The costs of the establishment of an association shall be paid by the promoters of the

association in proportion to their fraction in joint ownership.

Article 5. Joining an Active Association

1. Owners of flats and other premises in a multi-apartment building in which an

association has not been established or owners of other types of buildings may initiate joining

with an association established by the owners of flats and other premises of another building or

owners of other types of buildings (hereinafter: ‘an active association’) provided that they meet

the requirements of Article 4(2) of this Law and have obtained the approval of the management

body of the active association.

2. The decision to join an active association shall be taken by owners of flats and other

premises/buildings at the meeting of owners of flats and other premises/buildings. The decision

to join an active association shall be deemed valid if more than 1/2 of owners of flats and other

premises in the multi-apartment building or another type of building/buildings, in which an

association has not been established, is present at the meeting of owners of flats and other

premises/buildings and more than 1/2 of the owners of flats and other premises/buildings present

at the meeting vote in favour of the decision to join an active association. Where a multi-

apartment building, the owners of flats and other premises of which take the decision to join an

active association, is administered by an administrator appointed according to the procedure

defined by the Civil Code, the initiators of joining with an active association shall, prior to the

planned meeting of the owners of flats and other premises, give a 30 day written notice to the

administrator of common objects in this multi-apartment building.

3. Upon the decision to join an active association, the initiators of joining shall draft a

joining agreement and authorise one of the owners of flats and other premises/building to sign it

with the active association.

4. The joining agreement shall be approved by the general meeting/meeting of

representatives of the active association according to the procedure established by the statutes of

the association.

5. Following the approval of the joining agreement, the statutes of the active association

shall be amended and registered with the Register of Legal Entities. Owners of flats and other

premises/buildings who join an active association shall acquire the rights and assume the

obligations of the members of this association.

Article 6. Founding Meeting of an Association

1. The founding meeting of an association shall be convened by the initiator of the

establishment of that association. He shall, prior to the meeting day, give at least 14 day public

notice of the convening of the founding meeting of an association to the owners of flats and other

premises/buildings specifying the goal of the establishment of an association and the place, date

and time of the meeting. The notice shall be accompanied by the agenda of the founding meeting

of an association and the draft statutes of an association.

2. The founding meeting of an association shall be deemed valid if more than 1/2 of the

owners of flats and other premises/buildings are present.

3. The decisions of the founding meeting of an association shall be taken by majority

vote of the owners of flats and other premises/buildings present at the meeting. During the vote

of the founding meeting of an association, each owner of a flat or other premises/building shall

have one vote. Co-owners of a flat or other premises/building shall be represented by one person

having one vote.

4. Participants of the founding meeting of an association shall be registered in a list. The

list of the participants of the founding meeting of an association shall indicate the name and

surname of each participant, the type of a personal identity document, its number and the date of

issue, the name and number of a legal person, the address/addresses and unique number/numbers

of the flat/flats or other room/premises or building/buildings owned by the participant of the

meeting and the signature of the participant. Where a participant of the meeting acts for an owner

of a flat or other premises/building, the list of the participants of the founding meeting of an

association shall indicate the registration number and the date of his power of attorney. The list

of the participants of the founding meeting of an association shall be signed by the chairperson

and the secretary of the meeting.

5. Minutes shall be taken of the founding meeting of an association. The minutes of the

founding meeting of an association shall be drafted within five working days of the day of the

meeting. The minutes shall be signed by the chairman and the secretary of the meeting. The list

of the participants of the founding meeting of an association, including their signatures, shall be

attached to the minutes of the meeting. The sample form of the minutes and the founding

meeting of an association and the list of the participants of the founding meeting of an

association shall be approved by an institution authorised by the Government.

6. The conformity of the founding documents of an association to the laws shall be

notarised.

7. If the founding meeting of an association is not held at the time planned, a repeat

founding meeting of an association shall be convened no sooner than 14 days after the date of the

originally planned founding meeting. The repeat founding meeting of an association shall be

governed by the provisions of this Article.

8. The founding meeting of an association shall approve the statutes and elect the

management body of the association. The founding meeting of an association may also elect

other management bodies of the association.

Article 7. Statutes of an Association

1. The statutes of an association shall constitute a document governing the activities of

an association. The statutes of an association shall contain the following particulars:

1) name of an association;

2) legal form: an association;

3) duration of an association, if limited;

4) essential characteristics of the object of joint ownership, i.e. actual or estimated

details, including the name, address and cadastre number, if any;

5) goals of the association and a clear and comprehensive description of the areas of its

activity;

6) procedure for the drawing up and amendment of the list of the members of the

association;

7) where an association is established to create an object of joint ownership for the

needs of the members of the association or other general needs, the procedure for and the terms

and conditions of contribution payment, the procedure for the evaluation of non-monetary

property contributions, if such evaluation is carried out by the promoters of the association;

8) procedure for and terms and conditions of entry into or withdrawal from an

association by the owners of flats and other premises/buildings;

9) capacity of the general meeting of the members of the association (hereinafter: ‘the

general meeting’) or of the meeting of representatives and the procedure for convening of and

voting at the meeting, including secret ballot and written procedure;

10) management and other bodies of the association, their capacity, the procedure of

their election and removal; the procedure for forming a dispute settlement commission or

electing a person settling disputes and the dispute settlement procedure, where such a

commission is formed or a person elected;

11) procedure for the transfer of the voting right and conveying of the opinion on the

items of the agenda of the general meeting before the meeting;

12) procedure for the use of funds and assets of the association;

13) procedure for the amendment of the statutes of an association and change of the

office address;

14) procedure for and the terms and conditions of the reorganisation and liquidation of

the association, also the procedure for the election and recalling of the liquidator of the

association;

15) procedure for the announcement and publication of notices, registration and

publication of the decisions of the general meeting/meeting of representatives;

16) date of signing of the statutes of an association.

2. The statutes of an association may also contain other provisions which are not in

conflict with the laws of the Republic of Lithuania.

3. The statutes of an association that is to be established shall be signed by the

chairperson and the secretary of the founding meeting of the association. The amended statutes

of an association shall be signed by the chairperson and the secretary of the general

meeting/meeting of representatives. The signatures of natural persons signing the statutes of an

association are not be notarised.

4. The statutes of an association to be established shall become invalid if not submitted

to the manager of the Register of Legal Entities within 6 months of their approval by the

founding meeting of the association.

Article 8. Registration of an Association

1. An association shall be registered with the Register of Legal Entities. The application

to register an association shall be submitted to the manager of the Register of Legal Entities by

the chairperson/board of the association. The following are the documents that shall be submitted

to the manager of the Register of Legal Entities along with the said application:

1) the minutes of the founding meeting of an association;

2) the list of the participants of the founding meeting of an association;

3) the statutes of an association; and

4) the list of the owners of flats and other premises/buildings who have given their prior

written consent or approval at the founding meeting in relation to the establishment of an

association, including their signatures.

2. The manager of the Register of Legal Entities shall, within 20 working days of the

receipt of the application referred to in paragraph 1 hereof and other documents, register the

association or inform the chairperson/board of the association in writing of the reasons for the

refusal to register the association. The refusal to register the association may be appealed against

at court according to the procedure established by laws.

3. An association shall be deemed established and acquire the rights of a legal person of

the day of its registration with the Register of Legal Entities.

4. The amended statutes of an association shall be re-registered in the Register of Legal

Entities. The statutes of an association shall be re-registered upon the submission of an

application and the minutes of the general meeting/meeting of representatives concerning the

amendment of the statutes of an association to the manager of the Register of Legal Entities. The

amended statutes of an association shall take effect on the day of re-registration in the Register

of Legal Entities.

SECTION THREE

MANAGEMENT OF AN ASSOCIATION

Article 9. Management Bodies of an Association

1. The supreme management body of an association shall be the general meeting of the

members of an association. The statutes of an association may provide for the meeting of

representatives of the members of an association having the part of the rights of the general

meeting defined in the statutes of an association.

2. The management bodies of an association shall include the board and/or the

chairperson of an association. An association shall acquire civil rights, assume civil obligations

and fulfil them via its management bodies.

3. Where the board of an association is not formed, the functions assigned to the board

shall be performed by the chairperson of the association.

4. For the purpose of the internal control, an association shall form a controllers’

commission or elect a controller.

5. An association having more than one hundred members – owners of flats and other

premises/buildings – shall form a dispute settlement commission or elect a person settling

disputes. Other associations shall form a dispute settlement commission or appoint a person

settling disputes at their own discretion.

Article 10. Competence of the General Meeting

1. The general meeting shall:

1) amend the statutes of an association;

2) elect and recall the chairperson of the association/members of the board;

3) elect and recall members of the controllers’ commission or the controller and approve

the rules of procedure of the controllers’ commission or the controller;

4) take decisions in relation to the method of administration of the association and the

organisation of regular service/maintenance and use of common objects;

5) have the authority to take the decision on the performance of the financial audit of

the association;

6) authorise one of the members of the association to sign for the association an

employment contract with the chairperson of the association and determine the terms and

conditions of salary payment and the salary amount, unless otherwise defined in the statutes of

an association;

7) elect and recall members of the dispute settlement commission or the person settling

disputes and approve the rules of procedure of the dispute settlement commission or the person

settling disputes, if the dispute settlement commission/person settling disputes is

formed/appointed;

8) approve the rates of contributions earmarked for the administration, regular

service/maintenance of common objects of the association or payment of other costs;

contributions or the procedure of calculation of contributions to the accumulation fund for the

renovation of the building or common objects or the investment fund for the creation of new

objects of joint ownership, and establish the procedure for the use of the funds;

9) approve the annual estimate of revenue and expenditure of the association;

10) approve the inventory of common objects;

11) take decisions on the borrowing of funds for the renovation of common objects or

other credit obligations, except for the cases defined in paragraph 12 hereof;

12) approve other contributions related to the administration of the association and the

use and maintenance of common objects, unless otherwise defined by the statutes of an

association;

13) approve the annual financial statements and the annual activity report of the

association;

14) take decisions on the association’s entry to or withdrawal from association

organisations or other public organisations;

15) take decisions to reorganise or liquidate the association;

16) elect or recall the liquidator of the association;

17) take decisions on payment losses and damages resulting from economic activities of

the association.

2. The general meeting may also take decisions in relation to other issues falling within

its remit, as defined by the statutes of an association.

Article 11. Convening and Organisation of the General Meeting. Decision Making

1. General meetings shall be convened by the chairperson or the board of an association

according to the procedure established by the statutes of the association. The general meeting

shall also be convened where so required by the controllers’ commission/controller or more than

1/4 of the members of the association (if the association brings together a few multi-apartment

buildings, more than 1/4 of the members of the association in each building, or more than 1/4 of

the members of the association in at least one building, where the general meeting is convened

upon the expiry of the term of office of the management bodies). In the event of the failure of the

management body of an association to convene the general meeting within a month of the receipt

of the request to convene one, it may be called by the controllers’ commission/controller or more

than 1/4 of the members of the association (if the association brings together a few multi-

apartment buildings, more than 1/4 of the members of the association in each building, or more

than 1/4 of the members of the association in at least one building, where the general meeting is

convened upon the expiry of the term of office of the management bodies).

2. The initiator of the meeting referred to in paragraph 1 hereof shall, no later than 14

days before the day of the general meeting, post a notice of the meeting on the noticeboard of the

association or in other noticeable places, specifying the time, date and place of the meeting and

announce the agenda of the meeting, including the draft decisions, or indicate where and when

the draft decisions will be available for consideration. Where the agenda of the general meeting

includes the election or recalling of the management body of the association, amendment of the

statutes of the association, handling of the issues of reorganisation or liquidation of the

association or consideration of the annual estimate of revenue and expenditure of the association,

the members of the association shall be notified of the general meeting in writing. If making the

decisions defined in Article 12(1) hereof is on the agenda of the meeting, a written notice of the

general meeting shall be given to all owners of flats and other premises in the building/buildings

for which the association is established.

3. The general meeting shall be convened on an annual basis not later than within three

months of the end of the financial year. Each general meeting shall elect the chairperson and the

secretary of the meeting.

4. The members of the association present at the general meeting shall be registered and

sign in the list of the participants of the meeting. The list of the participants of the general

meeting shall be signed by the chairperson and the secretary of the general meeting. The

members of the association may give their prior written opinion on the issues handled by the

meeting according to the procedure established by the statutes of the association. The members

of the association who give their prior written opinion shall be deemed present at the general

meeting and registered in the list of the participants of the general meeting, while their votes

shall be taken into account when determining the voting results.

5. The general meeting shall be deemed valid and have the power to take decisions if

more than 1/2 of the members of the association are present at the meeting. Where the general

meeting is deemed failed due to the lack of quorum, a repeat meeting shall be convened in no

less than two weeks with the right to consider and make decisions on the agenda of the meeting

that failed. A repeat general meeting shall be deemed valid if more than 1/4 of the members of

the association are present.

6. The decisions of the general meeting shall be deemed valid where more than 1/2 of

the members of the association present at the meeting vote in favour, except for the cases defined

in paragraph 7 hereof.

7. The decisions of the general meeting on the amendment of the statutes of an

association, election or recalling of the management body or the members of the management

body of the association, reorganisation or liquidation of the association shall be valid if more

than 2/3 of all members of the association present at the meeting vote in favour (or 3/5 of all

representatives in cases defined in Article 13 hereof).

8. Voting at the general meeting shall be open. Secret ballot shall be necessary in

relation to the issues for which at least one member of the association requests secret ballot and

the approval is given by more than 1/10 of the members of the association present at the meeting.

Secret ballot shall be organised and held according to the procedure established by the statutes of

an association.

9. Each member of an association shall have one vote at the general meeting of the

association. At the meeting of the owners of a multi-apartment building/buildings or other types

of buildings, each owner shall have the number of votes which is equivalent to the number of

objects owned by him in that/those building/buildings which belong/belongs to the association

and is/are registered in the Real Property Register.

10. Minutes shall be taken of general meetings. The minutes of the general meeting

shall be signed by the chairperson and the secretary of the meeting.

11. The minutes of the general meeting shall be drawn up and signed not later than

within five working days of the day of the meeting. The minutes of the general meeting shall be

accompanied by the list of the participants of this meeting, powers of attorney and other

documents certifying the authorisation to vote for the members of the association at the general

meeting, also documents confirming that the members of the association have been notified of

the convening of the general meeting.

12. The members of an association may take decisions by voting in writing, except for

the decisions on the issues defined in paragraph 7 of this Article. The procedure for voting in

writing shall be established by an institution authorised by the Government.

13. The decisions of general meeting/meeting of representatives, including decisions

made by voting in writing, shall be registered and published according to the procedure defined

by the statutes of the association.

Article 12. Convening and Organisation of the Meeting of All Owners of Flats and

Other Premises/Buildings. Taking Decisions in Relation to the Safeguarding of Common

Interests or Individual Common Objects

1. Decisions on the safeguarding of common interests of the owners of flats and other

premises/buildings in a multi-apartment building/buildings or other type of building/buildings in

which the association is established (choice of hot water supplier, heat distribution method or

method of heating in the building/buildings, choice of payment method, determination of the

consumption limits, conclusion or termination of contracts between the owners of the

premises/buildings and service suppliers, etc.), also on the measures not related to the

implementation of the minimum requirements of use and maintenance of the building/buildings,

the renovation of the building/buildings, accumulation or borrowing of funds for this purpose

and the terms and conditions of a credit agreement shall be taken by majority vote of all owners

of that multi-apartment building/buildings or other type of building/buildings in which the

association is established, without prejudice to the requirements of justice, reason and fairness.

In this case the provisions of Article 11 hereof shall mutatis mutandis apply to the convening and

decision making of the meeting of the owners of flats and other premises/buildings.

2. Decisions in relation to individual common objects which, according to the inventory

of common objects, are or may be used to meet the needs of part of the owners rather than all

owners of the multi-apartment building/buildings or other type of building/buildings, without

prejudice to the rights of other owners of the multi-apartment building/buildings or other type of

building/buildings and the decisions of the general meeting of the association on the

management, use, repair or renovation of common objects and the accumulation or borrowing of

funds for this purpose, may be taken by and shall be binding to that part of the owners of flats

and other premises/buildings. Such decisions shall be taken mutatis mutandis according to the

procedure for the convening of meetings and decision making established by Article 11 hereof.

3. Decisions of the meeting of all owners of flats and other premises/buildings shall be

registered and published according to the procedure defined by the management bodies of the

association.

Article 13. Legal Status of the Representatives of the Members of an Association.

Election of Representatives and the Convening and Organisation of Their Meeting

1. In the event of the failure of a repeat meeting, as defined in Article 11(5) hereof,

which prevents the association from achieving its goals, or in other cases defined by the statutes

of an association, the meeting of representatives of the members of an association (hereinafter:

‘the meeting of representatives’) shall be convened according to the procedure established by

this Law and the statutes of the association.

2. The meeting of representatives shall be convened by the chairperson/board of an

association. The meeting of representatives shall also be convened where required by the

controllers’ commission/controller or more than 1/4 of the representatives. Subject to the failure

of the management body of an association to convene the meeting of representatives within a

month of the receipt of the request to convene such a meeting, the meeting may be convened by

the controllers’ commission/controller or more than 1/4 of the representatives.

3. Representatives shall be elected by the meetings of the members of the association of

the part/division/section of the multi-apartment building for a four-year term. The number of the

terms of office of a representative shall be unlimited. Representatives shall be elected from the

members of the association. The number of the representatives of the members of an association

shall be determined in the statutes of the association on the basis of the principle of adequate and

proportionate representation.

4. A representative shall represent the interests of the members of the association who

have elected him. Each representative shall have one vote. At the meeting of representatives, a

representative shall vote on each individual item taking into account the intentions of the

majority of the represented members of the association declared before the meeting in writing or

in another form.

5. The meeting of representatives shall be deemed valid if no less than 3/5 of the

representatives are present. Decisions shall be made by majority vote of the representatives

present at the meeting, except for the decisions referred to in Article 11(7) hereof.

6. Members of an association shall have the right to recall their representative. A

representative shall be deemed having lost trust and recalled if more than 1/2 of the members of

an association whom he represents vote in favour of his recalling at the meeting of the members

of the association of the relevant part/division/section of the multi-apartment building. A prompt

notice of the decision to recall a representative shall be given by the members of the association

to the recalled representative and the chairperson/board of the association.

Article 14. Chairperson of an Association

1. The chairperson of an association shall be a natural person eligible according to the

statutes of the association. If the members of an association determine that the chairperson of the

association should be a person who does not have a flat or other premises in this/those

building/buildings for the management of common objects of which the association has been

established, the association shall have a collegial management body – the board.

2. The chairperson of an association shall be elected and recalled, his job description

shall be approved and the salary determined by the general meeting/meeting of representatives

for a three-year period according to the procedure established by the statutes of the association.

The number of the terms of office of the chairperson of an association shall be unlimited. The

chairperson of an association shall assume office on the day of election, unless otherwise

determined in his employment contract.

3. An employment contract with the chairperson of an association shall be signed and

the amendments or termination thereof approved by the person authorised by the general

meeting/meeting of representatives.

4. The chairperson of an association shall act in accordance with the laws, governmental

resolutions, other legal acts, the statutes of the association, the job description of the chairperson

of the association and decisions of the general meeting/meeting of representatives.

5. The chairperson of an association shall arrange operations of the association to

achieve its goals, employ and dismiss members of the staff and conclude and terminate their

employment contracts.

6. The chairperson of an association shall be responsible for:

1) arrangement of operations of the association and achievement of its goals;

2) drawing up of annual financial statements and annual report of the association;

3) conclusion of an agreement with an audit firm, where there is a decision of the

general meeting/meeting of representatives on financial auditing of the association;

4) provision of information and documents to the general meeting/meeting of

representatives in the cases defined herein or at the request of the general meeting/meeting of

representatives;

5) submission of the documents and details of the association to the manager of the

Register of Legal Entities;

6) provision of information to the owners of flats and other premises/buildings at their

request;

7) drawing up and handling of the list of the members of the association or the list of the

representatives of the members of the association elected according to the procedure defined by

Article 13 hereof. The list/lists shall include contact details of the members of the association or

their representatives/proxies, such as name, surname, correspondence address and/or e-mail

address and phone number. Details of the list of the members of the association or their

representatives/proxies shall be revised no less than once a year;

8) drawing up and handling of the inventory of common objects;

9) organisation of maintenance of the building/buildings, its/their appurtenances and

common objects, drawing up, completion and handling of maintenance documents, also the use

and management of common plot/plots according to laws and other legal acts;

10) drafting and submission of annual and long-term plans for renovation of common

objects of the building/buildings to the general meeting/meeting of representatives or the board;

11) management of the accumulation account of the owners of flats and other

premises/buildings and use of these funds for the intended purpose;

12) making and submission of an annual estimate of revenue and expenditure of the

association to the general meeting/meeting of representatives or the board;

13) submission of documents to the controllers’ commission/controller and/or the

auditor.

7. All requests, claims and other documents submitted to the chairperson of an

association by the owners of the flats and other premises/buildings shall be registered and

handled according to the procedure established by the statutes of the association. The

chairperson of an association shall, within ten working days of the receipt of the inquiry of an

owner of a flat or other premises/building, provide full information about the decisions of the

management bodies of the association, assets of the association, accumulation funds,

contributions and other obligatory payments related to the operation of the association.

8. The chairperson of an association shall be responsible for proper performance of his

functions delegated by the general meeting/meeting of representatives and defined by legal acts.

The chairperson of an association shall pay damages incurred by the association in relation to his

decisions made in breach of this Law and other laws of the Republic of Lithuania or the statutes

of the association.

9. Before the end of the term of office of the chairperson of an association, the general

meeting/meeting of representatives shall elect a new chairperson of the association. In the event

of the failure to elect the chairperson of an association within 12 months of the end of the term of

office of the former chairperson of the association, no less than 1/4 of the members of the

association (or no less than 1/4 of the members of the association in each multi-apartment

building, where the association brings together a number of multi-apartment buildings) or 1/4 of

the representatives and the chairperson of the association shall have the right to refer to the

municipal executive authority concerning the liquidation of the association and appointment of

an administrator for the objects of joint ownership according to Chapter XIV, Book Four of the

Civil Code.

10. Where a one-man management body of an association – the chairperson of an

association – is unable to perform his duties, according to the procedure established by the

statutes of the association he may be temporarily substituted by one member of the association

until the election of a new chairperson of the association.

Article 15. Formation of the Board of an Association

1. The board of an association shall consist of the chairperson and the members of the

board of the association. The chairperson of an association shall be the chairperson of the board

of the association. The number of the members of the board of an association shall be defined in

the statutes of the association. It may not be less than three.

2. The board of an association shall be elected by the general meeting/meeting of

representatives for the term of office defined in the statutes of the association, which shall not be

more than three years. A member of the board of an association shall be a natural person having

a flat or other premises in the building/buildings for the management of common objects of

which the association has been established and eligible according to the criteria defined in the

statutes of the association. The number of terms of office of a member of the board of an

association shall not be limited.

3. Before the end of the term of office of the board of an association, the general

meeting/meeting of representatives shall elect a new board of the association. In the event of the

failure to elect a new board of an association within 12 months of the end of the term of office of

the former board, no less than 1/4 of the members of the association (or no less than 1/4 of the

members of the association in each multi-apartment building, where the association brings

together a number of multi-apartment buildings) or 1/4 of the representatives and the board of

the association shall have the right to refer to the municipal executive authority concerning the

liquidation of the association and appointment of an administrator for the objects of joint

ownership according to Chapter XIV, Book Four of the Civil Code.

4. A member of the board of an association may resign his position with at least 14 day

written notice to the board of the association.

Article 16. Competence and Responsibility of the Board of an Association

1. The board of an association shall perform the following functions:

1) convene general meetings/meetings of the representatives according to the procedure

established by this Law and the statutes of the association;

2) analyse and submit annual and long-term plans for the economic activities of the

association, estimates of revenue and expenditure, financial statements and annual activity report

for the approval of the general meeting/meeting of representatives;

3) analyse and approve the management structure of the association, functions of the

staff (except for the management bodies of the association) and their salary;

4) analyse and submit the inventory of common objects and the internal rules of the

building/buildings managed by the association for the approval of the general meeting/meeting

of representatives;

5) analyse and submit for the approval of the general meeting/meeting of

representatives proposals for the accumulation of funds, the amount of accumulation

contributions and borrowing for the purpose of renovation of the building/buildings. Drafted

decisions on economic activities of the association or the method of administration shall ensure

the implementation of the obligatory requirements for the use and maintenance of common

objects defined by laws and other legal acts;

6) analyse and evaluate the financial condition of the association and the results of its

economic operations;

7) approve the terms and conditions of purchase of services and contracted works and

purchase reports;

8) other functions delegated to the board according to the statutes of the association.

2. The procedure of work of the board of an association shall be defined by the rules of

procedure approved by the board.

3. Meetings of the board of an association shall be convened by the chairperson of the

association. As regards the convening of the meeting of the board of an association, each

member of the board of the association shall have the right of initiative.

4. Decisions of the board of an association shall be taken by majority vote of the

members of the board in a roll call vote. Each member of the board of an association shall have

one vote. In the event of a tie in vote on the decision of the board of an association, the

chairperson of the board of the association shall have the casting vote. Each member of the board

of an association may express his opinion on the decision in writing before the meeting.

5. The meeting of the board of an association shall be deemed valid and the board shall

have the right to make decisions provided that more than 2/3 of the members of the board of the

association are present at the meeting. The members of the board of an association, who have

given their written opinion before the meeting, shall be deemed present at the meeting of the

board of the association, and their votes shall be taken into account when determining the voting

results.

6. Minutes shall be taken of the meetings of the board of an association. Minutes of the

meetings of the board of an association shall be kept according to the procedure established by

legal acts.

7. The board of an association shall be responsible for proper performance of its

functions, delegated by the general meeting/meeting of representatives and defined by legal acts,

and the financial condition of the association.

8. The members of the board of an association shall pay damages incurred by the

association in relation to the decisions of the board made in breach of the statutes of the

association, this Law and other laws of the Republic of Lithuania. The members of the board of

an association shall have a solidary obligation to pay damages to the association. The obligation

to pay damages shall not be imposed on the members of the board of an association who voted

against the decision that caused damages or were not present at the meeting of the board that

took such a decision, provided that, within seven days of the moment they learned or had to

become aware of such a decision, they submitted to the board/chairperson of the association a

written objection to such decision making.

9. Where the chairperson of an association is unable to perform his duties or his term of

office has expired, the board of the association shall appoint one of its members to perform the

functions of the chairperson of the association until a new chairperson of the association is

elected.

Article 17. Accounting and Financial Statements of an Association

1. The accounting of an association, organisation and management of accounting and

drawing up of financial statements of an association shall be regulated by laws and other legal

acts.

2. The annual financial statements of an association shall be approved by its general

meeting/meeting of representatives according to the procedure established by the statutes of the

association.

3. Before the approval by the general meeting/meeting of representatives, the annual

financial statements of an association shall be reviewed by the controllers’

commission/controller of the association. The general meeting/meeting of representatives may

determine to contract an audit firm to audit the annual financial statements of the association.

The audit report shall be submitted to the chairperson/board and the general meeting/meeting of

representatives of the association. The audit report shall be made available to all owners of flats

and other premises/buildings.

4. The financial year of an association shall coincide with the calendar year.

Article 18. Controllers’ Commission/Controller of an Association

1. Members of the controllers’ commission or the controller of an association shall be

elected and recalled by the general meeting/meeting of representatives according to the

procedure established by the statutes of the association. The controllers’ commission shall have

no less than three members. Members of the controllers’ commission or the controller shall be

elected for a maximum four-year term of office. The number of the terms of office of a member

of the controller’s commission or the controller shall not be limited.

2. Members of the controllers’ commission or the controller may not be the chairperson

of the association, members of the board of the association, their spouses or cohabitees, also

persons in parent-child or close family relationship with the chairperson or members of the board

of an association, such as parents/adoptive parents, children/adopted children, brothers, sisters,

also brothers, sisters, parents/adoptive parents and children/adopted children of spouses or

cohabitees.

3. The controllers’ commission/controller of an association shall:

1) control the economic and financial activities of the association;

2) at the end of a financial year, audit and evaluate the economic and financial activities

and financial statements of the association and submit its/his report to the chairperson/board and

the general meeting/meeting of representatives of the association;

3) be obliged to carry out an extraordinary audit of the economic and financial activities

of the association if so required by more than 1/5 of the members of the association;

4) where an association brings together a number of multi-apartment buildings, have the

obligation to inspect the availability and use of the accumulation funds of the owners of flats and

other premises of an individual multi-apartment building, where so required by more than 1/5 of

the owners of flats and other premises of that specific multi-apartment building. In this case, the

controllers’ commission/controller shall submit the report to the initiators of audit and the

general meeting/meeting of representatives.

4. The management body of an association shall submit explanations and all documents

necessary for audit to the controllers’ commission/controller or the auditor. The management

body of an association shall be prohibited to limit the authorisations of the entities carrying out

the audit of the economic and financial activities of an association or otherwise interfere with

their work.

5. Having established any infringements in relation to the economic and financial

activities of the association, the controllers’ commission/controller shall have the right to require

that the chairperson/board of the association convene an extraordinary general meeting/meeting

of representatives. In the event of the failure of the chairperson/board of the association to

convene the general meeting/meeting of representatives within 30 calendar days of the receipt of

this requirement, the meeting shall be convened and its agenda defined by the controllers’

commission/controller. The report of the controllers’ commission/controller on the infringements

of the economic and financial activities of the association shall be submitted to the general

meeting/meeting of representatives.

Article 19. Annual Activity Report of an Association

1. The chairperson of an association shall, no later than 15 days before the ordinary

general meeting, draw up the annual activity report of the association. This report shall be public.

Access to this report shall be provided to each owner of a flat or other premises/building.

2. The annual activity report of an association shall contain the following:

1) information about the activities of the association related to the achievement of

activity goals defined in the statutes of the association within the reported period,

implementation of annual and long-term plans for economic activities and renovation of

common objects fulfilling the obligatory requirements for the use and maintenance of buildings,

information about the funds received and used by the association, the balance of unused funds

and the use and balance of funds accumulated for the renovation of the building/buildings;

2) activity plans and forecasts of the association.

Article 20. Public Supervision and Control of the Activities of an Association

1. According to the Law on Local Self-government, the supervision and control of the

activities of the management bodies of an association shall be carried out by municipalities.

2. A municipal executive institution or a person authorised thereby shall be entitled to

control the performance of the statutory functions of the management bodies of an association

and, according to the Code of Administrative Offences of the Republic of Lithuania, draw up

reports on administrative offences, handle cases of administrative offences and impose

administrative penalties or transfer cases of administrative offences to court.

CHAPTER FOUR

RIGHTS AND OBLIGATIONS OF OWNERS OF FLATS AND OTHER

PREMISES/BUILDINGS.

SETTLEMENT OF DISPUTES

Article 21. Rights and Obligations of Owners of Flats and Other

Premises/Buildings Related to the Management, Use, Maintenance and Renovation of

Objects of Joint Ownership

1. The rights and obligations of owners of flats and other premises/buildings, related to

the management, use, maintenance and renovation of objects of joint ownership, are defined by

the Civil Code, this Law and other laws, legal acts and the statutes of an association.

2. As regards the management, use, maintenance and renovation of objects of joint

ownership, owners of flats and other premises/buildings shall enjoy equal rights defined in

paragraph 1 hereof irrespective of their actual membership of the association.

3. Owners of flats and other premises/buildings shall:

1) protect, properly use and maintain common objects;

2) cover the costs of maintenance and use of common objects, pay charges and fees and

make other contributions to the accumulation funds of the association according to the procedure

established by legal acts and the management bodies of the association;

3) abide by the decisions of the management bodies of the association or the meetings

of owners of flats and other premises/buildings on the management, use, maintenance and

renovation of common objects;

4) whenever temporarily leaving, renting or otherwise entrusting their flat or other

premises/building to other persons, inform the chairperson/board of the association of how

access to the flat or other premises/building belonging to the owner will be provided, if needed;

5) give their representative, if elected according to Article 13 hereof, the telephone

number by which the owner of the flat or other premises/building or other person authorised by

him could be reached in the event of fire or engineering networks failure, where it is necessary to

access the flat or other premises/building of the owner;

6) observe other provisions of this Law, other laws and legal acts.

4. Owners of flats and other premises/buildings shall have the right:

1) to attend the general meeting of the association without the voting right, submit

proposals and receive information in relation to the activities and management of the association;

2) to enter an association;

3) to dispose of the portion of objects of joint ownership determined according to the

procedure established by laws;

4) receive information about contributions defined for the maintenance and

preservation/repair of objects of joint ownership, accumulation funds for the renovation of the

building/buildings or other contributions related to the maintenance and use of the

building/buildings;

5) require that the management of the association and the use and maintenance of

common objects allow the owners of flats and other premises/buildings to exercise their rights

and serve their lawful interests;

6) without the approval of other owners of flats and other premises/buildings, take

necessary measures in order to prevent damage or eliminate threat to common objects and, with

a written letter to the association, require that other owners of flats and other premises/buildings

pay incurred costs in proportion to the their portion in joint ownership;

7) appeal against the decisions of the management bodies of the association, general

meeting/meeting of representatives and owners of flats and other premises/buildings according to

the procedure established by Article 2.82 of the Civil Code;

8) get familiar with the list of the members of the association/list of representatives and

obtain contact details of the members of the management bodies of the association;

9) authorise another person to act in their interests in relations with the association and

its management bodies concerning the use, management, maintenance and renovation of objects

of joint ownership, and indicate the period of the power of attorney and the scope of rights and

duties. This power of attorney must be notarised;

10) exercise other rights defined in laws and other legal acts.

5. In addition, members of an association shall have the right:

1) to vote at the general meeting of the association, submit proposals and receive

information in relation to the activities and management of the association;

2) to elect and be elected chairperson of the association or a member of the board or

other management body of the association;

3) to withdraw from the association.

6. While selling or donating his flat or other premises/building or otherwise transferring

ownership, an owner of a flat or other premises/building shall give a notice thereof to the

chairperson/board of the association and discharge all his payment obligations that are due in

respect of the association. The approval of a transfer transaction requires the submission of a

certificate issued by the chairperson/board of the association concerning the discharge and/or

non-fulfilment of obligations in respect of the association. In cases defined by laws, an

agreement on sale and purchase, donation or transfer of a flat or other premises/building may

allow the assignment of the obligations of the former owner to his successor.

Article 22. Withdrawal of Owners of Flats and Other Premises/Buildings from the

Association and Payments to the Association

1. Membership of the association shall expire:

1) with the withdrawal of an owner of a flat and other premises/building from the

association;

2) upon the loss by an owner of a flat and other premises/building of ownership giving

him the title to an object of joint ownership;

3) upon the death of an owner of a flat and other premises/building;

4) upon liquidation or reorganisation of an owner of a flat and other premises/building

as a legal person;

5) upon liquidation of the association.

2. A member of the association may not be expelled from the association against his

will.

Article 23. Dispute Resolution

1. Disputes of the members of an association and the management bodies or other bodes

of that association/their members shall be referred to the dispute settlement commission of the

association or person settling disputes, where such a commission is formed or a person elected

according to the procedure established by this Law. The procedure for the settlement of such

disputes and the formation of the dispute settlement commission or election of the person settling

disputes shall be defined by the statutes of an association.

2. Where a dispute may not be resolved according to the procedure established in

paragraph 1 hereof or the disputing parties fail to comply with the proposal of the dispute

settlement commission or person settling disputes for dispute resolution, disputes shall be

resolved according to the procedure established by laws.

3. When referring to court concerning their claims related to the activities of the

association, owners of flats and other premises/building, except for legal persons, shall be

exempted from paying a stamp duty.

CHAPTER FIVE

ASSETS AND FUNDS OF AN ASSOCIATION

Article 24. Assets of an Association

1. The assets of an association shall be separated from the property of owners of flats

and other premises/buildings.

2. The assets of an association shall be tangible, intangible and financial values acquired

through the use of the funds of the association or in other lawful ways.

3. The assets of an association shall be managed and disposed of according to the

procedure established by laws and the statutes of the association.

4. Owners of flats and other premises/buildings may contribute to the assets of an

association through non-monetary property contributions. The procedure for the evaluation of

such contributions shall be determined by the general meeting/meeting of representatives.

Article 25. Funds of an Association

1. The funds of an association shall consist of:

1) targeted contributions of the owners of flats and other premises/buildings earmarked

for covering the costs of the administration of the association and regular maintenance of

common objects;

2) state or municipal support;

3) revenue received from disposing of the assets of the association and other non-

repayable amounts.

2. Revenue received through the use of objects of joint ownership of owners of flats and

other premises/buildings shall be distributed among the owners of flats and other

premises/buildings in proportion to their portion in the objects of joint ownership and/or shall be

used for the renovation of the building/buildings.

3. An association, like managers of common objects of other legal forms, must have a

separate accumulation account. All funds of owners of flats and other premises/building in an

accumulation account, including funds collected and/or used for the renovation of the

building/buildings or common objects in such a building/buildings, shall be included in

accounting and managed for each multi-apartment building and owner of a flat and other

premises/building individually. According to the Law of the Republic of Lithuania on Insurance

of Deposits and Liabilities to Investors, an association shall administer the funds in its

accumulation account as a trustee, while the trustors – each owner of a flat or other

premises/building, whose portion in the funds is determined on the basis of the accounting data

of the association – shall be considered the depositors. The funds of each depositor − owner of a

flat or other premises/building − in the accumulation account exceeding the statutory amount

covered by compulsory state insurance shall be insured according to the procedure established by

laws. Recourse to the accumulation account of an association shall be prohibited in relation to

the liabilities of the association or individuals in joint ownership.

CHAPTER SIX

SPECIFIC FEATURES OF THE REORGANISATION OF ASSOCIATIONS

Article 26. Reorganisation of an Association

1. An association of owners of flats and other premises/buildings may merge with

another association/associations or be divided into smaller associations provided that each of

them will be able to operate in an individual building/buildings or part/division/section of a

building according to the requirements of Article 4(2) hereof.

2. An association shall be reorganised according to the requirements of reorganisation

of legal persons laid down in the Civil Code. An association shall be subject to a simplified

procedure for the reorganisation of legal persons.

3. Where an association is divided into smaller associations, the method of unbundling

shall apply. Partition of an association may be initiated by no less than 1/4 of owners of flats and

other premises/buildings related to an individual building/buildings by the right of joint

ownership, which may be managed separately.

4. The decision to establish and divide a new association shall be made according to the

requirements of Article 11 hereof. Upon the establishment of a new association, approval of its

statutes and election of the management bodies, the chairperson/board of a new association shall,

no later than within five working days of the decision to establish a new association, give a

written notice thereof to the management body of the association being unbundled and submit a

proposal for the conditions of the reorganisation of the association.

5. Following the establishment of a new association, the management bodies of the

existing association must, within one month of the notice of the management body of the newly

established association, asking to prepare the reorganisation terms and conditions of the

association, draw up and publish the reorganisation terms and conditions of the association, and

give a written notice thereof to all creditors of the association and the manager of the Register of

Legal Entities. Disputes in relation to the distribution of the assets and funds of the association

shall be settled according to the procedure established by laws.

6. The reorganisation terms and conditions of the association shall be approved by the

management bodies of associations involved in the reorganisation procedure no sooner than 30

days after the publication of the reorganisation terms and conditions of the association. The

reorganisation terms and conditions of the association and new founding documents shall be

submitted to the manager of the Register of Legal Entities.

7. The reorganisation of an association shall end with the implementation of the

reorganisation terms and conditions of the association and registration with the Register of Legal

Entities of the statutes of the associations operating after the reorganisation.

CHAPTER SEVEN

FINAL PROVISIONS

Article 27. Assistance of Municipal Institutions and Association Organisations for

the Establishment and Operation of Associations

1. Municipal executive institutions shall offer legal and organisational assistance to

owners of multi-apartment buildings and other types of buildings while establishing associations,

also arrange and provide free of charge consultation on the issues of the establishment,

operation, reorganisation and liquidation of associations.

2. Financial aid may be provided by municipalities for the purpose of the establishment

and operation of associations according to the association support programmes approved by

municipalities and other EU financed programmes.

3. Association organisations shall perform the following functions:

1) provision of associations with methodological and information assistance in relation

to their activities;

2) at the request of owners of multi-apartment buildings and other types of buildings,

engagement in resolving of disputes among owners of multi-apartment buildings and other types

of buildings and disputes between owners of multi-apartment buildings and other types of

buildings and the management bodies of an association;

3) provision of public services related to training and professional development of staff

concerning the management and administration of associations and their organisations.

I promulgate this Law passed by the Seimas of the Republic of Lithuania.

PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS

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