Lithuanian Railways strengthens the Board of the Company

Date

2019 02 26

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In the nearest future, the Ministry of Transport and Communications of the Republic of Lithuania intends to publish a selection for the position of an independent member of the Board of JSC “Lithuanian Railways”. This step shall strengthen the Board of the largest railway group in the Baltic States.

The new Board member will join the five independent members currently working on the Board and will replace the CEO of the Company. According to Paulius Martinkus, Deputy Minister of Transport and Communications of the Republic of Lithuania, it becomes important to separate executive and control functions as the company grows.

Paulius Martinkus, Deputy Minister of Transport and Communications of the Republic of Lithuania said that the practice of good governance provides a clearly measurable result implemented in JSC “Lithuanian Railways”. Attracting professional and competent board members to state-owned companies ensures a broader approach to the strategy of the company and allows the company to achieve even more ambitious goals. By separating the functions of the Board and management in accordance with the Nordic governance model, the highest standards of governance and transparency will be ensured.

Romas Švedas, Chairman of the Board of the Company, states that additional independent member will strengthen the Board of the Company.

In the opinion of Romas Švedas, JSC “Lithuanian Railways” is under transformation currently, laying the foundations for reaching the ambitious goals of the strategy of the company. I am pleased that the Board will be complemented by additional independent member who will strengthen the corporate governance standard of the company.

These Company management changes were approved by the shareholder of the company. The State owns 100 percent shares of JSC “Lithuanian Railways” and the shares are managed by the Ministry of Transport and Communications of of the Republic of Lithuania under trust law.

Currently, the Board of JSC “Lithuanian Railways” has seven members, five of them are independent.

The selection of the new Board member will be organized by the JSC “J.Friisberg & Partners”, Executive Selection Agency. Announcements of ongoing selections, detailed information and documents submitted to candidates will be soon published on the websites of JSC “Lithuanian Railways”, Ministry of Transport and Communications of the Republic of Lithuania and Governance Coordination Centre of the Republic of Lithuania.