When I first began learning about business structures in Lithuania, the term Akcinė Bendrovė (sometimes written as akcine bendrove0) kept appearing in legal documents and discussions. At first, it sounded complicated, but over time I realized it was simply Lithuania’s version of what many countries call a public limited company (PLC).
Understanding how this type of company works is important not just for lawyers or investors, but also for entrepreneurs who want to expand their business in Lithuania or the broader European Union. The choice of business structure affects everything—from taxes and liability to shareholder responsibilities and future growth opportunities.
In this article, I will explain in plain language what an Akcinė Bendrovė is, how it is structured, its pros and cons, and why it plays such an important role in Lithuania’s economy. I’ll also share some personal insights I’ve gathered from observing Lithuanian companies that operate as Akcinė Bendrovė.
What is an Akcinė Bendrovė (akcine bendrove0)?
An Akcinė Bendrovė (AB) is a type of public limited company under Lithuanian law. In simple terms, it’s a business structure where the company’s capital is divided into shares, and these shares can be publicly traded.
This means that anyone can buy shares of an Akcinė Bendrovė, making it easier for the company to raise large amounts of capital. Unlike smaller business structures such as sole proprietorships or private limited companies (UAB), an AB is designed for bigger operations with more complex financial and management needs.
When I compare it to international business forms, I see it as the Lithuanian version of the PLC in the UK or the AG in Germany. It’s formal, regulated, and generally suited for larger businesses that want to grow beyond just a local market.
The Legal and Structural Features of an Akcinė Bendrovė
One of the defining features of an Akcinė Bendrovė is that shareholders have limited liability. This means they are only responsible for the amount of money they invested in the company through shares. If the company faces losses, shareholders do not lose their personal assets.
Another important feature is governance. An AB is required to have:
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Shareholders’ Meeting – the highest decision-making body.
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Board of Directors – responsible for management and strategic decisions.
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Supervisory Board or Audit Committee – ensures transparency and accountability.
This layered structure provides checks and balances, which are essential for protecting investors and maintaining trust in the business. From my perspective, it makes the AB a safer option for larger ventures compared to less structured forms of business.
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