Amendments of the Consumer Protection Act will enter into force
December 2007On 12 December 2007, several important amendments of the Consumer Protection Act (the “CPA”) will enter into force. The amendments are mainly related to the prohibition of unfair commercial practices and are based on Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market.
Read more
Tark & Co Compiles New Book on Mergers and Acquisitions
December 2007At the instigation of Tark & Co partner, Risto Vahimets, a new practical book on “Mergers and Acquisitions: An Alternative to Organic Business Growth” has been published. Read more
FirstNorth Baltic launches in Estonia
December 2007On 19 November, legislation enabling the operation of alternative securities markets in Estonia entered into force. This date, along with the approval of its regulations by the Estonian Financial Supervisory Authority, marks the de facto Estonian launch of FirstNorth Baltic, a Baltic alternative market operated by local stock exchanges within OMX Group. Although Tark & Co first reported on the planned launch of FirstNorth Baltic earlier this year, the process has been delayed due to the need for legislatory changes. Read more
Secondees at Tark & Co
November 2007This week (26-30 November) Tark & Co hosts two secondees: Heidi Haanpää from Hannes Snellman and Jonas Holmqvist from Mannheimer Swartling. Read more
Tark & Co organised a seminar
November 2007On 20 November, a seminar on cross-border mergers was organised by Tark & Co in cooperation with Äripäev. Read more
Three new full members of Estonian Bar
November 2007On November 13, 2007, Minni-Triin Park, Margit Lahevee and Kristi Kullerkup were accepted as full members of the Estonian Bar Association. Minni-Triin Park and Margit Lahevee are members of the Mergers and Acquisitions practice group and Kristi Kullerkup is a member of the Banking and Finance practice group.
Mihkel Kolk admitted to the Bar
November 2007Mihkel Kolk was admitted to the Estonian Bar Association in October 2007. Mihkel practices in the Banking and Finance practice group and specializes in the regulatory framework of financial services and capital markets.
Mihkel joined Tark & Co in May 2007.
Imbi Jürgen in the Energy Law Group meeting in Lisbon
November 2007On October 26, Imbi Jürgen participated in the meeting of the Energy Law Group (ELG) in Lisbon. The ELG is made up of lawyers with specialist expertise in the energy and natural resources sectors and all belonging to independent European law firms. The ELG covers most European countries and constitutes the most extensive network of European experts in energy and natural resources law. The meeting was hosted by leading Portuguese law firm Morais Leitão, Galvão Teles, Soares da Silva & Associados. The subject of the regional energy markets in the EU was elaborated at the public session of the meeting, focusing on the experience of the Iberian Electricity Market.
Tark & Co organises seminar
October 2007CROSS-BORDER MERGER: NEW SYNERGIES
Seminar on November 20, 2007 in Tallinn, Estonia, organised by Tark & Co in cooperation with Äripäev (affiliate to Dagens Industri)
Read more
Hannes Vallikivi participated on Annual Conference of IBA
October 2007Tark & Co partner Hannes Vallikivi participated in the Annual Conference of the International Bar Association (IBA), Singapore on October 14-19. Mr. Vallikivi was one of the speakers in the “Legal opinion practice” workshop, organised by the Banking Law Committee. Read more
Hannes Vallikivi is member of TSE Listing Committee
October 2007Tark & Co partner Hannes Vallikivi was elected as a member of The Listing and Surveillance Committee, Tallinn Stock Exchange.
Duties of the Committee include listing, admission to trading, delisting and, under TSE Rules, surveillance over listed companies and member firms, including imposing sanctions. Read more
Tark & Co partner contributes to the investment textbook
October 2007The Tallinn Stock Exchange and top securities specialists issued the Investment Guide, a first comprehensive textbook on investing in Estonian. Kilvar Kessler of Tark & Co contributed to the textbook an article on good corporate governance. Other topics discussed the history of stock exchange in Estonia, investment principles, strategies etc. Kilvar is also one of the authors of Estonian Corporate Governance Code, he specializes in financial markets and corporate law.
Tark & Co in top tier
October 2007The 2008 edition of IFLR 1000 listed Tark & Co as a tier 1 firm in two categories: Banking and capital markets and Mergers and acquisitions. Top Estonian lawfirms were divided into four tiers, tier 1 firms being the most recommended. Read more
Tark & Co advised music portal www.muusika24.ee
October 2007Tark & Co assisted Music Online in the creation process of a music portal.
Music Online is an Estonian company that opened the music portal www.muusika24.ee. The portal is intended to gather all pieces of Estonian music, from those created by the first national composers until hip-hop music. Music Online is building a digital database (archive) containing all information on Estonian music published in Estonia. All files will also be available in an online music store.
By Tark & Co coordinated the process partner Risto Vahimets.
New partner in Tark & Co
October 2007Kilvar Kessler has become a partner in Tark & Co. Mr. Kessler joined the firm in 1995, now practicing mainly in financial markets issues and regulatory matters. He has structured the legal framework for takeovers in Estonia, the first rights issue and the first GDR-issue in Estonia. In addition to being the head of numerous working groups that drafted Estonian statutes on financial law, Mr Kessler is a co-author of the Estonian corporate governance code. He lectures securities regulation at the Law Institute of Tartu University and insurance law at the Tallinn College of Tallinn Technical University. Kilvar Kessler has acted as a general legal counsel for the Financial Supervision Authority and has practiced with the U.S. Securities and Exchange Commission. Mr Kessler has LL.M from Georgetown University; he was awarded Edmund S. Muskie fellowship and Hubert H. Humphrey fellowship with Boston University.
Top-quality lawyers met in Tallinn
September 2007The Association of European Lawyers (AEL) held its Annual General Meeting in Tallinn on 13-15 September 2007. The meeting was organised and hosted by Tark & Co.
AEL unites 42 top-quality law firms from 56 jurisdictions and the Tallinn meeting was attended by 70 delegates from 35 member firms. This year’s main topic was work-life balance.
AEL is an association of independent law firms co-operating on a non-exclusive basis, which has been active for more than 18 years. Tark & Co joined AEL in 1995. The next AEL AGM will be held in Liverpool in September 2008.
Tark & Co advised on a major real estate transaction in Tallinn city centre
September 2007Tark & Co assisted Pontos group in the sale of famous SAS Radisson building in Tallinn. The deal closed in August and property is now owned by Boultbee Holdings. Tark & Co team included partner Risto Vahimets and associates Kuldar-Jaan Torokoff, Piret Jesse and Margit Lahevee.
Tark & Co recruits Rolan Jankelevitsh
September 2007In a move to further strengthen its tax competence and corporate and commercial practice, Tark & Co recruits attorney-at-law Rolan Jankelevitsh, previously an associate with Lepik & Luhaäär LAWIN. Rolan has received his LL.M. degree in International Taxation from the University of Leiden (the Netherlands) and brings extensive expertise in domestic and international taxation, general corporate law as well as mergers and acquisitions.
Tark in Spain
August 2007On July 8-11, 2007 Mr. Aare Tark took part of four-day official visit to Spain by the President Toomas Hendrik Ilves. During the visit, among other activities, participants met with King Juan Carlos and Queen Sofia, visited Madrid technology park at Tres Cantos, and a Spanish-Estonian business seminar was held. Tark & Co made a number of valuable contacts.
Toomas Taube participated at the International Arbitration Retreat in Lovells (London)
June 2007The major international law firm Lovells invited Tark & Co partner Toomas Taube to attend its annual International Arbitration Retreat in London on June 15. Toomas Taube participated in the event together with colleagues from the partner law firms of Tark & Co - Vilius Bernatonis from Sutkiene, Pilkauskas & Partners (Lithuania) and Kristine Gaigule from Loze, Grunte & Cers (Latvia).
The participants of the retreat together with Lovells arbitration and litigation practitioners from around the world and distinguished guests discussed the issues and developments of the international commercial arbitration in the Middle East and Russia & CIS.
Piret Luiga at the Annual Meeting of International Distribution Institute (IDI) in Vienna
June 2007Piret Luiga of Tark & Co attended the yearly conference organised by the IDI, a leading organisation dealing with the law of international distribution and covering distribution, agency and as of this year also franchising agreements.The theme of the conference in 2007 was how to organise the termination of agency and distributorship agreements and the conference brought together in-house lawyers, attorneys and business people from all over the world.
Piret Luiga gave a presentation on the development of distribution law in the Baltic States and participated in a panel which discussed how to terminate distribution and agency agreements in case of failure to attain minimum turnover. For further information on the event please visit the webpage of the IDI at www.idiproject.com, where you will also find extensive information on agency and distribution regulations and case law as well as the IDI model contracts.
Domestic inter-bank direct debit service launched
June 2007On 13 June 2007, leading Estonian banks concluded an agreement on provision of domestic inter-bank direct debit service. As a result thereof, direct debit service can now be used for direct debit payments between clients of different banks. The service was elaborated under the aegis of Estonian Banking Association.
Kessler and Siigur of Tark & Co advised Estonian Banking Association is legal matters related to inter-bank direct debit service and elaboration thereof.
Hannes Vallikivi publishes an article on cross-border merger
June 2007Tark & Co partner Hannes Vallikivi published an in-depth article on cross-border mergers in the May issue of Estonia's most prominent law journal Juridica. In the article, Hannes describes his experience in the first ever cross-border merger in the Baltics and gives practical hints for implementation and future application of the new EU Cross-border Merger Directive.
New recruit
May 2007In May 2007, Tark & Co Banking and Finance team was further strengthened by the addition of Mihkel Kolk. Before joining Tark & Co, Mihkel worked as a lawyer in business conduct supervision division of the Estonian Financial Supervisory Authority. His main responsibilities with the regulator related to supervising the activities of pension funds and other collective investment undertakings. Prior to this, Mihkel had been working in another law firm.
Chancellor of Justice: financial limits for labor disputes not prohibitive
May 2007Chancellor of Justice Allar Jõks gave his opinion regarding a statutory limitation that labor dispute claims upwards from EEK 50,000 must be submitted to a court of first instance instead of a labor dispute committee. Although admitting that the obligation to pay a state fee when submitting an action to the court is somewhat restrictive, Jõks argued that such restrictions are not prohibitive and are justified for such significant claims. Furthermore, Jõks stressed that the higher the claims, the more important it is to give the plaintiff sufficient legal protection which courts are more qualified to do than labor dispute committees.
Amendment to the Constitution
May 2007The Parliament of Estonia recently adopted an amendment to the Constitution that will come into force on 21 July 2007. The preamble of the Constitution will thereby be amended with a reference to the need to preserve and protect the Estonian language in present and future times. This amendment was motivated by the lack of clear legislative grounds for ensuring the continuing survival of language as part of the Estonian culture.
Suspension of tendering procedure as provisional legal protection
May 2007The Supreme Court has provided a solution to whether during public procurement the contracting authority must set a new closing date for submitting tenders if the public procurement procedure has been suspended by the administrative court as a means of provisional legal protection before the original closing date. The Court ruled that if a new closing date is not expressis verbis determined by the administrative court that suspended the tendering procedure, the contracting authority should on the principle of good administration set a new closing date. This would ensure that all participants in the tender share a common understanding of the tender rules.
New Public Procurement Act entered into force
May 2007On May 1, 2007 new Public Procurement Act entered into force in Estonia. The new act transposes into Estonian law the EU procurement directives 2004/17/EC and 2004/18/EC. Among several amendments introduced by the new act, the act provides for a new tendering procedure called “competitive dialogue”, a procedure which has been designed for use in case of particularly complex procurements and in which the contracting authority conducts a dialogue with the candidates admitted to such procedure. The new act also establishes an independent dispute resolution committee for solving of procurement related disputes. Such committee shall be independent of the Public Procurement Office and its members shall be appointed by the Government of the Republic.
First North marketplace to be launched in the Baltics
May 2007According to the press release of OMX Baltic Exchange of 7 May 2007, alternative marketplace First North will be introduced in the Baltics in 2007. Following the success of First North launch in Nordic countries (2005 in Denmark, 2006 in Sweden and 2007 in Iceland and Finland), the OMX Group strives to launch First North also in the Baltics (see: www.firstnorthbaltic.omxfroup.com).
First North is an alternative market, operated by different exchanges within OMX. It does not have the same legal status as a regulated market in EU according to MiFID. First North is operating as a multilateral trading facility rather than a regulated market, whereby trading is organized with a less complicated set of rules and supervision is carried out on self-regulation basis. For companies, First North provides an easy access to the Nordic, Baltic and global financial markets and for investors additional investment possibilities.
In order to launch First North Baltic, the stock exchanges of Tallinn, Riga and Vilnius are currently harmonizing their market rules and negotiating with Certified Advisers.
Tark visits Swedish business forum in Moscow
May 2007Mr Aare Tark took part in the Sweden Russia Business Forum held in Moscow from May 2-6, 2007. The forum was organized by the Embassy of Sweden, partnered also by Mannheimer Swartling. Among others, messrs Liden of Swedbank and Kamprad of Ikea participated the forum. Several business meetings and interesting sessions were held, visits were made to Russian companies.
Hannes Vallikivi gave a presentation at a pre-seminar to Pärnu Finance Conference 2007
April 2007On 11 April 2007, KPMG held a pre-seminar to Pärnu Finance Conference 2007. The seminar was dedicated to Societas Europaea (SE) and discussed whether this was a new tool for raising efficiency. Hannes Vallikivi of Tark & Co gave an in-depth overview of Estonian legal environment’s readiness for the new challenge such as SE.
Property laws updated with respect to obligation to tolerate utility networks and utility works
April 2007On March 26, 2007 several amendments entered into force with respect to the rules concerning the obligation to tolerate utility networks and utility works such as heating, water supply or sewerage systems, telecommunications or power networks, etc (hereinafter utility works) by the owner of an immovable. For example, pursuant to amendments made to the Law of Property Act and the Law of Property Implementation Act the owner of an immovable must inter alia tolerate utility works on his or her immovable and must allow its construction on his or her immovable if such utility works are necessary in the public interest (e.g. construction of power networks so as to provide electricity to consumers, etc). In addition, the regulation was inter alia updated to include the right of the owner of an immovable to demand payment for tolerating utility works retroactively beginning from November 1, 2004 on the condition that a relevant application will be submitted to the owner of utility works latest by July 1, 2010. The application of the updated regulation has already raised several questions among the owners of utility works and it is yet to be seen how it will work in practice.
The Financial Supervision Authority sets its mind on insurance mediation market
April 2007The Estonian Financial Supervision Authority publishes on 02.04.2007 draft guidance for insurance mediation services. The draft guidance containing in a document “Requirements for provision of insurance mediation services” has been sent to the market participants for commenting.
There are a number of insurance mediators registered in Estonia in addition to insurance mediators offering cross border services. Their activities are regulated under the new Insurance Activities Act of 2005.
The draft guidance of the FSA seeks to specify the rules set forth by the Insurance Activities Act. In particular, the guidance strives to ensure that an insurance mediator acts independently from any insurance company ad that the interests of the client of an insurance mediator are protected. It is to be seen what will be the attitude of the market participants towards the draft guidance.
RES-E support measures amended by Parliament
April 2007On May 1, 2007 a set of amendments to the Electricity Market Act (EMA) enter into force which significantly alter the support system of electricity produced from renewable energy sources (RES-E). As of May 1, 2007, the feed-in tariffs for RES-E payable by the grid operator are increased from EEK 0.81/kWh to EEK 1.15/kWh. As an alternative, the producers of RES-E shall be entitled to sell RES-E and apply for subsidy in the amount of EEK 0.84 per one kWh of sold electricity. The fixed feed-in tariffs and the subsidies shall be paid within 12 years of start of the production. Certain limitations have been set to producers which use wind energy. As of January 1, 2009 such producers may sell RES-E at fixed tariffs until the total annual amount of electricity generated from wind in Estonia is up to 200 GWh and receive subsidy until the total annual amount of electricity generated from wind in Estonia is up to 400 GWh. The costs deriving from the obligation to buy at the feed-in tariffs and the payment of subsidies shall be borne by final customers.
The Coalition Agreement signed today, liberalization of tax regime continues
April 2007Today, three winning parties forming a right wing coalition signed the Coalition Agreement. The Agreement foresees further liberalisation of tax regime. Kilvar Kessler as a representative of Estonian Association of Asset Managers was working, in cooperation with the other stakeholders, to flag up certain financial products taxation issues during coalition negotiations, now addressed in the Agreement.
The opening session of the 11th Riigikogu
April 2007The opening session of the 11th Riigikogu (Parliament) was held on 2 April pursuant to the Resolution of the President of the Republic. The opening speech was made by the President of the Republic.
Tark & Co supports Moot Court Competition
April 2007Kilvar Kessler of Tark & Co participate as a judge in 10th Anniversary of the Moot Court Competition, held in premises of the Supreme Court of Estonia. The model case discussed taxation of capital gains and discretionary powers of the IRS. The winning team came from University of Tartu Law Faculty (Tartu), the best speaker from University of Tartu Law Institute Tallinn.
Tark & Co hosted a seminar on Investment Protection
April 2007Tark & Co together with Lovells, one of the largest business law firms in the world, and Latvian and Lithuanian associated law firms, Loze, Grunte & Cers and Sutkiene, Pilkauskas & Partners hosted on March 20-22, 2007 a seminar on investment protection. The seminar took place in all of the three Baltic States - in Tallinn, Riga and Vilnius. Toomas Taube of Tark & Co was one of the speakers at the seminar. His presentation provided a comprehensive overview of bilateral investment protection treaties (BITs) entered into by the three Baltic States and the measures available under BITs for protection of investments. The seminar provided a practical introduction to investment protection mechanisms including how to structure investments to maintain maximum protection and how these mechanisms work when problems arise between host states and foreign investors.
FSA Guidelines on Business Continuity
March 2007The Financial Supervision Authority has issued guidelines to entities subject to financial supervision for organising business continuity, effective from 1 March 2007.
The guidelines set forth rules and processes that supervised entities should implement in their activities in order to restore their activities in the case of extraordinary disruptions (e.g. loss of staff, malfunctioning of IT-systems, environmental disaster). The guidelines set forth minimum-standard recommendations and require to use “comply or explain” principle when implementing the standards. The “High-level principles for business continuity” issued by the Joint Forum in August 2006 were used for developing the recommendations contained in the FSA guidelines.
European Commission fines members of lifts and escalators cartels over EUR 990 million
February 2007The Commission has fined the Otis, KONE, Schindler and ThyssenKrupp groups EUR 992 million for operating cartels for the installation and maintenance of lifts and escalators in Belgium, Germany, Luxembourg and the Netherlands, in clear violation of Article 81 EC. Read more
Kilvar Kessler speaking about risk mitigation
February 2007On 20 and 21 February 2007, a financial conference “Growth – Necessity and Opportunity” was organized by Äripäev, a leading Estonian business newspaper. Among other specialists, Kilvar Kessler of Tark & Co gave a comprehensive overview about mitigation of legal risks and corporate governance. Read more
Estonian kroon cannot be devaluated overnight
February 2007On 20 February 2007, an article by managing partner Aare Tark and senior associate Andres Suik of Tark & Co was published in Eesti Päevaleht, a national newspaper. Mr. Tark and Mr. Suik analysed the possibilities of the Estonian kroon being devaluated overnight, reaching the conclusion that the probability of this happening is small.
European Company (SE) - a new option for pan-Baltic business
February 2007In February 2007 issue of Ärielu, a leading Estonian business magazine, Hannes Vallikivi and Kristi Kullerkup of Tark & Co introduced the pros and cons of European Companies. Read more
Tark & Co No. 1 commercial law firm in Estonia
February 2007Recently published 2007 edition of prominent Chambers Global guide ranks Tark & Co in the top tier of Estonia's corporate and commercial law firms. Read more
Validity of arbitral agreements clarified
February 2007The Supreme Court confirms that an arbitral agreement may be disregarded if neither party has relied on the agreement in due course. According to the Estonian Code of Civil Procedure, one criterion for admissibility of an action is whether the parties have agreed to refer the dispute to arbitration, except in the case where the action itself contests the validity of the arbitral agreement. The Supreme Court points out that all objections to the admissibility of an action or appeal should be submitted concurrently in response to the action or appeal; or, if no response is given, at the first hearing or when the first substantive petition is submitted to the court. In case the parties' behaviour demonstrates that they do not wish to rely on the arbitral agreement, the matter will be settled in the court.
Risto Hübner admitted to the Bar
February 2007Risto Hübner was admitted to Estonian Bar Association on 20 February 2007. Risto practices in Corporate and Commercial Practice Group, his specialist area is IT, telecom and media law.
Hannes Vallikivi speaking about SEs
February 2007On 24 January 2007, Tark & Co partner Hannes Vallikivi spoke in a popular live programme in Radio KUKU about European Company (SE) and cross-border mergers.
New Employees’ Representatives Act adopted
February 2007New Employees’ Representatives Act came into force on 1 February 2007. By the Act, Directive 2002/14/EC of the European Parliament and of the Council of 11 March 2002 establishing a general framework for informing and consulting employees in the European Community (Joint declaration of the European Parliament, the Council and the Commission on employee representation), has been implemented. Among others, the Act also regulates that an employer that employs at least 30 employees is obliged to implement the information and consultation rules established in the Act including also employer’s obligation to inform and consult the employees about major structural changes in the company.
White-collar crimes revisited
February 2007At the end of January, the Parliament passed an act amending the Penal Code in relation to white-collar offences. The act will enter into force on 15 March 2007. The amendments to the Penal Code concern criminal official misconducts, offences related to licencing requirements and intellectual property, tax offences and corporate crime (including market abuse, competition and company law). The criminalisation system of such offences will be more complex after the amendments enter into force, however, not necessarily stricter. In several instances, the authors of the amendments have strived to draw a line between less serious offences and offences that may have more serious impact (e.g. lack of a credit institution licence will be considered more serious than, for example, lack of a licence required for housing business).
Tark & Co hosted a seminar on Real Estate
February 2007Tark & Co together with British Estonian Chamber of Commerce hosted on February 1, 2007 a seminar on Estonian real estate markets. Margus Tinno from Arco Vara gave a comprehensive overview of the outlook for commercial real estate in 2007. Risto Vahimets, a partner of Tark & Co adressed the particularities of property due diligence in Estonia. Piret Luiga, Minni-Triin Park and Piret Jesse all of Tark & Co discussed property taxes, zoning and building permits as well as lease agreements in the currently booming Estonian real estate market. Presentations are available from BECC. Tark & Co hopes to continue cooperation with British Estonian Chamber of Commerce and arrange for seminars and workshops on current issues in the future as well.
e-Register grants public access to lists of shareholders
February 2007As of 2007 everybody has the right to examine and obtain extracts of data concerning shareholders of public and private limited companies, who own more than 10% of company’s shares by using e-Register (electronic environment of services of Estonian Central Register for Securities). The information publicly accessible includes names, personal/business codes and number of shares owned by such shareholders. Formerly one had to prove existence of legitimate interest to obtain the information, however the requirement of claiming a legitimate interest is still applicable for accessing information concerning the shareholders owning less than 10% of company’s shares. In order to gain access to e-Register, authorization, either by using the ID-card or through the Internet bank, is needed.
Municipalities are obliged to arrange for the construction of public roads
February 2007The Supreme Court of Estonia ruled in a case initiated by Jõhvi County that the obligation of the municipalities to arrange for construction of public roads, street lights and rain wate sewerage derived from the Construction Act is constitutional
Jõhvi County claimed that this rule is unconstitutional as it infringes the right of muncipalities to decide and manage independently affairs of local life. Jõhvi also claimed that municipalities will become dependent on real estate developers and can not estimate their cost basis for budgeting purposes. Read more
Tark & Co co-hosts a seminar on corporate governance
January 2007Tark & Co and OMX, an Estonian stock exchange, will have a joint practical corporate governance seminar for issuers on January 29, 2007. Mr. Hannes Vallikivi of Tark & Co will discuss responsibilities of corporate bodies in compiling a corporate governance report. Mr. Kilvar Kessler, one of the drafters of the Estonian Corporate Governance Code, will discuss about future developments of corporate governance in Europe.
The President speaks at the business luncheon
January 2007On January 25, 2007 Mr. Aare Tark took part of AmCham speaker luncheon. Special guest speaker of the event was President of the Republic of Estonia
Mr. Toomas Hendrik Ilves.
Kessler moderates international financial conference
January 2007On January 19, 2007, Kilvar Kessler of Tark & Co moderated a conference dedicated to 5th anniversary of the unified financial supervision in Estonia. Sir Callum McCarthy of UK FSA, Kaarlo Jännäri of Finnish RATA, the Governor of the Central Bank Andres Lipstok, Estonian Minister of Finance Mr. Aivar Sõerd, Raul Malmstein of EFSA and others delivered presentations on future developments of financial services market in Europe.
Tark in Ukraine
January 2007On January 15-17, 2007 Mr. Aare Tark took part of three-day official visit to Ukraine by the Prime Minister Andrus Ansip. During the visit, an agreement on economic, industrial, scientific and technical cooperation was signed between Estonia and Ukraine. During the visit, which took place on an invitation from the Prime Minister of Ukraine Viktor Yanukovych, meetings with President Viktor Yushchenko and the Chairman of the Parliament Oleksandr Moroz were held. In addition to Kiev, the delegation of businessmen visited the industrial city Dnepropetrovsk in Eastern Ukraine. Tark & Co made a number of valuable contacts.
The Parliament lowers state fees
January 2007Taking a cost-oriented approach, the parliament lowered several state fee rates by amending the State Fee Act. The amendments are effective from 1 January 2007. Both the stamp duties for operations of the Land Registry and Commercial Register were significantly lowered. In addition, several M&A-related registry entries are now fully exempted from stamp duty (e.g. entry of merger of legal entities with the registry).
The Supreme Court clears up taxation of stock options
January 2007The Supreme Court confirmed that the transaction made for tax evasion purposes can be re-qualified and tax reassessed. The Court also stated that tax evasion in essence is always intentional and therefore an extended limitation period is applied. In this decision the Court also reconfirmed the principles of taxation of employee stock options settled just in recent years. Finally the taxable moment of employee stock options is clear. The employee stock options having monetarily appraisable value to the receiving employee at the moment of grant are taxable at the moment of grant. In such case, the employer shall pay fringe benefit taxes on the difference between option premium and market value of the stock option. Stock options not monetarily appraisable at the moment of grant bring tax implications upon exercising the stock option by the employee. In such case fringe benefit taxes are imposed on the difference between the sales price of the underlying shares and the market value of the shares upon that moment.
First European Company (SE) established in Estonia
January 2007On January 2, 2007, the merger of Sampo Life Insurance companies in Estonia, Latvia and Lithuania into an SE (Societas Europaea) was completed. The first operating SE in the Baltics and Eastern-Europe was registered in Estonia, while in Latvia and Lithuania operations will continue through branches. Read more
Principles of the Capital Requirements Directive transposed
January 2007The Parliament decided to transpose principles of the Capital Requirements Directive into the Credit Institutions Act and to amend the latter respectively. Detailed requirements will be adopted by a Bank of Estonia Governor regulation. The amended Act will enter into force on January 1, 2007.
The Commercial Register lowers barriers and speeds up proceedings
January 2007The Parliament adopted a statute which speeds up proceedings at the Commercial Register. Now it is possible to file applications for making certain entries in the Register over the Internet, without the help of a notary. While the expedited procedure is expected to take 2 hours, the period for general applications was shortened from 15 to 5 days. Whether and to what extent the above will work in practice is yet to be seen.
Estonian Railways back in the Government’s hands
January 2007Preceded by lengthy negotiations between the parties, the Government finally decided to terminate the Estonian Railways Privatization Agreement and to repurchase shares from Baltic Rail Services, a company representing different Estonian and foreign private investors. Tark & Co acted as a legal counsel for the state upon the privatization of Estonian Railways.
The Parliament makes fighting crime easier
January 2007The Parliament decided to make it easier to confiscate criminal income and property such as cars, houses and bank deposits.
The Bank of Estonia warns growth cannot continue indefinitely
January 2007According to the central bank, Estonia’s economic growth has reached its peak. Credit growth is expected to maintain its current level, although the real estate market is showing signs of declining demand. The financial standing of banks is strong and their capitalization and liquidity are sufficient regarding the current economic environment. The short-term risks of the banking sector are well-managed with the help of parent banks. The main risk facing the banking sector is the concentration of the loan portfolio on financing real estate development and related investment.
Estonian government sector costs are the lowest in the EU
January 2007According to the Ministry of Finance, Estonia had the lowest government expenditure among the EU member states in 2005, accounting for 33.2% of GDP. The average respective figure of the EU member states is 47.1% of GDP.
In some cases, a civil law partnership is entitled to file petitions with administrative courts
January 2007The Supreme Court held that in environmental matters a civil law partnership may file a petition with an administrative court, provided it acts on behalf of public at large. The partnership must represent the views of the vast majority of the public and the latter should widely accept the partnership as its representative.
The European Commission issued a communication on investment research
January 2007The European Commission has adopted a communication taking stock of, and providing stakeholders with practical guidance on, the provisions of recent European legislation relating to investment research and financial analysts. The Communication was adopted as a response to the report of the Forum Group on Financial Analysts which helped inform the drafting of that legislation.
Disclaimer |
|
 |
