EN ECB-PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 6 August 2014 
on the redenomination of the capital and securities of companies 
(CON/2014/63) 
 
Introduction and legal basis 
On 7 July 2014, the European Central Bank (ECB) received a request from the Lithuanian Ministry of the 
Economy for an opinion on a draft law on the procedures and rules applicable to the conversion of a 
company’s capital and the nominal value of its securities into euro (hereinafter the ‘draft law’). 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the first indent of Article 2(1) of Council Decision 98/415/EC1, 
as the draft law relate s to curre ncy m atte rs. In accordance with the first sentence of Article 17.5 of the 
Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion. 
 
1.  Purpose of the draft law 
1.1 The draft law is to be adopted under an enabling provision in the Law on the introduction of the 
euro in Lithuania2. Its main objective is to establish the procedure for the conversion of a 
company’s capital and the nominal value of its securities into euro. The conversion rate is to be the 
conversion rate fixed by the Council of the European Union pursuant to Article 140(3) of the 
Treaty and the procedure for redenomination is described in the Law on the introduction of the euro 
in Lithuania. Following redenomination, amounts in euro will be rounded up or down to the nearest 
e uro ce n t. Howe ve r, re de nom in ation i s no t to be tre ate d as e i the r an inc re ase o r a de c re ase in a 
company’s capital; instead, the difference in the capital amount, following the redenomination, will 
be recorded as income or as a cost of the company, as the case may be. 
1.2 The draft law also sets out procedures for updating the accounts of a holder of company securities 
a n d f o r s u b m i t t i n g a m e n d e d a r t i c l e s o f a s s o c i a t i o n t o t h e R e g i s t e r o f L e g a l E n t i t i e s . T h e l a t t e r 
procedure is to be carried out free of charge for companies and the cost of registering the amended 
articles of association will be covered by the State. 
 
 
                                                
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
2  Teisơs aktǐ registras , 29.4.2014, No 2014-04875. 
ECB-PUBLIC  
2 2. General observations 
The ECB welcomes these timely preparations for the introduction of the euro in Lithuania. The 
Lithuanian authorities have already consulted the ECB on issues relating thereto and the ECB has 
provided its opinion on the Law on the introduction of the euro in Lithuania3. The ECB notes that the 
draft law is to be adopted under an enabling provision in this law and that any future legislative 
provisions implementing the Law on the introduction of the euro in Lithuania will be drafted under the 
same enabling provision. 
 
3.  Specific observations 
The ECB has no specific observations on the draft law. 
 
This opinion will be published on the ECB’s website. 
 
 
Done at Frankfurt am Main, 6 August 2014. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
                                                
3  See Opinion CON/2014/14. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.