RESOLUTION No Official translation GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION No. 617 CONCERNING THE REORGANIZATION OF THE STATE RADIO FREQUENCY SERVICE INTO A GOVERNMENT INSTITUTION, THE COMMUNICATIONS REGULATORY AUTHORITY UNDER THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA 30 May 2000 Vilnius Invoking Articles 5 and 31 of the Law on Telecommunications of the Republic of Lithuania (Official Gazette, 1998, No. 56-1548; 2000, No. 32-892) and Article 19 of the Law on State and Municipal Enterprises (Official Gazette, 1994, No. 102-2049; 1997, No. 69-1738; 1998, No. 26-671; 2000, No. 34-956, No. 42-1186), the Government of the Republic of Lithuania has resolved:
- To change the legal status of the SE State Radio Frequency Service by reorganizing it into a government institution, the Communications Regulatory Authority under the Government of the Republic of Lithuania. The assets of the SE State Radio Frequency Service shall be transferred to, managed and used by the Communications Regulatory Authority under trusteeship law.
- To approve the project for the reorganization of the SE State Radio Frequency Service into a government institution, the Communications Regulatory Authority under the Government of the Republic of Lithuania (appended).
- To authorize the Ministry of Public Administration Reform and Local Authorities to appoint a commission on the reorganization of the SE State Radio Frequency Service for the implementation of its reorganization project, and by June 6, 2000, to submit the names of its members for the approval by the Government of the Republic of Lithuania. Prime Minister Andrius Kubilius Minister of Transport Rimantas Didžiokas APproved by the Government of the Republic of Lithuania under Resolution No. 617 of May 30,
- PROJECT OF THE REORGANIZATION OF THE SE STATE RADIO FREQUENCY SERVICE INTO A GOVERNMENT INSTITUTION, THE COMMUNICATIONS REGULATORY AUTHORITY UNDER THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA I. GENERAL PROVISIONS
- This Project shall regulate the reorganization of the SE State Radio Frequency Service (hereinafter referred to as the Enterprise) into a government institution, the Communications Regulatory Authority under the Government of the Republic of Lithuania (hereinafter referred to as the Communications Regulatory Authority).
- This Project has been developed according to Article 19 of the Law on State and Municipal Enterprises of the Republic of Lithuania. II. THE NAME AND THE OFFICIAL ADDRESS OF THE ENTERPRISE AND OF THE NEW REORGANISED INSTITUTION
- The name of the Enterprise under reorganization is the SE State Radio Frequency Service; address Algirdo St. 27, Vilnius 2006; Code: 2144221; Registration No. IĮ 95-19, Registration date: March 31,
- The Enterprise has been issued a registration certificate and the certificate of its official name.
- The name of the new reorganised institution is a Government Institution, Communications Regulatory Authority under the Government of the Republic of Lithuania; official address: Algirdo 27, Vilnius
- III. INITIATOR OF THE REORGANIZATION
- The reorganization was initiated by the Government of the Republic of Lithuania (Decision of the meeting of the Government of the Republic of Lithuania of February 17, 2000, On the Submission of the Draft Law on the Amendment of Article 19 of the Law on State and Municipal Enterprises of the Republic of Lithuania to the Seimas of the Republic of Lithuania (Item 7, Minutes No. 9). IV. METHOD OF REORGANIZATION
- The Enterprise shall be reorganised into the Communications Regulatory Authority by changing the legal status of the State Enterprise under Article 19.2.5 of the Law on State and Municipal Enterprises of the Republic of Lithuania. V. VALIDATION OF THE REORGANIZATION
- The Enterprise shall be reorganised under Article 3 of Resolution No. VIII-11464 Regarding the 1998 Report on the Activities of the Radio and Television Commission, adopted by the Seimas of the Republic of Lithuania on 4 May 1999 (Official Gazette, 1999, No. 41-1282), and Resolution No. 1497 On the Approval of the Measures of Implementation of the Activity Programme of the Government of the Republic of Lithuania for 1999-2000 (Official Gazette, 1999, No. 114-3316), which provide for the establishment of the Communications Regulatory Authority, an independent institution for the regulation of the communications market. The establishment of this institution has also been provided for in Article 5 of the Law on Telecommunications of the Republic of Lithuania and in the 1999 Partnership Programme of the Council of Europe. The Government of the Republic of Lithuania had authorised the Ministry of Transport to perform the functions of the Communications Regulatory Authority, but the Ministry has neither an adequate number of specialists nor the necessary technical basis for that, therefore the greater part of the aforementioned functions have been performed by the Enterprise. The Enterprise, under various legal statuses (in 1978, as the Technical Station for Radio Control; in 1991, as the State Inspectorate of Electrical Communications, a SE for special purposes; in 1992, the State Radio Frequency Service, a state enterprise for special purposes; since 1995, as the SE State Radio Frequency Service), conducted radio monitoring, controlled the equipment and facilities according to the radiation parameters, issued certificates for the equipment and facilities used in the Republic of Lithuania and until now has been performing the functions of the Communications Regulatory Authority as defined in the Law on Telecommunications of the Republic of Lithuania. The Enterprise has technical and technological facilities necessary for the performance of its tasks and functions as well as a qualified staff of engineers and technicians who co-ordinate radio frequencies (channels) with foreign countries, develop normative documents relevant to telecommunications activities and harmonise them with the appropriate legal acts of the European Union. The proposed method of reorganization allows the Enterprise to continue the performance of the functions of telecommunications regulation (so as telecommunications should not be disrupted) and at the same time to perform tasks and functions of the Communications Regulatory Authority provided for in the Law on Telecommunications of the Republic of Lithuania. From the time of its establishment, the Enterprise was in charge of controlling, supervisory and other functions which were out of line of its direct business, which could lead to the violation of the rules of fair competition (one enterprise should not control another enterprise). Due to the above mentioned reasons and the fact that the Enterprise did not conduct any other business or commercial activity, it has been decided to reorganise it into the Communications Regulatory Authority . VI. ASSETS OF THE ENTERPRISE
- The assets of the Enterprise were evaluated on the basis of the financial statements and the balance sheet as of 31 December
- The final audits of the Enterprise were carried out by the State Control Office of the Republic of Lithuania (Report No. 160-32 of 15 October 1998 and Report No. 160-35 of 22 October 1999). The audit of the annual financial statements for 1999 was performed by the Consulting Enterprise of E. Čiupailienė.
- The stock of the assets of the Enterprise was taken as of 1 December
- 11 As of 31 December 1999 the assets of the Enterprise amounted to (in litas): Total 10597396, including Fixed assets 7877146 Formation cost - Intangible assets 102267 Buildings 4565393 Facilities, equipment, vehicles and 3209486 other tangible assets Construction in progress - Long-term financial assets - Current assets 2710454 Accrued income and deferred expense 9796 Capital and reserves 9499193, including: Authorised capital 5925354 Reserves 3573839 Retained profit - Payables and liabilities 1098203, including: Payables after a year 97817 Debt and liabilities during the year 1000386 Accrued expense and deferred income -
- As of 30 March 2000 the authorised capital of the Enterprise amounted to 7987392 (seven million nine hundred eighty seven thousand three hundred and ninety two) litas.
- The balance sheet as of 31 December 1999 has been prepared and submitted to the tax authority. VII. ASSMUPTION OF OBLIGATIONS
- The Enterprise shall terminate its activities as a legal entity from the date on which its name is struck from Register of Enterprises. Its rights in conformity with the Regulations of the Communications Regulatory Authority and liabilities (including the arrears to the State Social Insurance Fund as well as amounts computed by tax administration officials and other state institutions, including penalties and penalty interest rates disclosed a after striking the name of the Enterprise from the Register of Enterprises) shall be transferred to the Communications Regulatory Authority from the date of signature of the Certificate on the Transfer of Assets and Documents.
- After the Government of the Republic of Lithuania has taken the decision to transfer the assets of the SE State Radio Frequency Service for the management, use and disposal under trusteeship law, the Certificate on the Transfer of Assets and Documents shall be signed by the Commission for the Reorganization of the Enterprise (hereinafter referred to as the Commission) and the CEO of the Communications Regulatory Authority.
- On the agreement between the parties, the labour relations of the employees of the Enterprise shall continue within the Communications Regulatory Authority. In the absence of agreement on the continuation of labour relations within the Authority, the employees’ employment contracts shall be terminated in the procedure provided for in the Law on the Employment Contract of the Republic of Lithuania. The implementation of this item requires the amendment of legal acts on the reorganization of a state or municipal enterprise into an institution financed from the central Government budget.
- Each creditor shall be notified in writing of the reorganization of the Enterprise within a month of the approval of this Project and the publication of reorganization notice in the country’s dailies. This information shall be published twice within a month’s interval. VIII. THE RIGHTS OF THE ADMINISTRATION OF THE ENTERPRISE DURING ITS REORGANIZATION
- The Administration of the Enterprise shall be obliged to ensure the continuation of the activities of the Enterprise.
- The Administration shall have the right to conduct the activities defined in the by-laws of the Enterprise. The Administration shall be prohibited to: 19.1 enter into a contract exceeding the value of 200,000 litas; 19.2 borrow funds; 19.3 hire new employees, make employment contracts with them.
- No experts shall be appointed for the reorganization period. IX. DEADLINE FOR REORGANIZATION
- The deadline for the reorganization of the Enterprise into the Communications Regulatory Authority shall be October 1, 2000.