Virtual Corporate Seat: The Lithuanian Perspective

Abstract

The article focuses on current developments in substantive company law by exploring an innovative concept of the virtual corporate seat which could be introduced as an alternative to the physical corporate seat, in its traditional understating, through the Lithuanian legislative initiative. Following the analysis on how the proposed concept of the virtual corporate seat is aligned with the concept of the real seat of a domestic company under substantive company law, the article argues that the proposed virtual seat of a company incorporated under national law has to be approached under the formalistic understanding of the corporate seat instead. It concludes that the concept of the virtual corporate seat should be essentially based on the concept of the registered office. The article supports the progressive idea on the virtual corporate seat and addresses the major drawbacks of the proposed legislative initiative on virtual corporate seat to improve it.