Opinion of the European Central Bank of 6 August 2014 on the redenomination of the capital and securities of companies (CON/2014/63)
Date: 2014-08-06
Institutions: European Central Bank
Subjects: Lithuania, euro, monetary integration, money, national law, price of securities, share capital

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 relates to currency matters. 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 

euro  cent.  However,  redenomination  is  not  to  be  treated  as  either  an  increase  or  a  decrease  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 

and  for  submitting  amended  articles  of  association  to  the  Register  of  Legal  Entities.  The  latter  

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  

2  

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). 
Teis(cid:417)s akt(cid:464) registras, 29.4.2014, No 2014-04875. 

 
 
 
 
 
 
                                                
ECB-PUBLIC 

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. 

2