Article 29. Members of the Bureau

1. Membership in the Bureau shall be open to insurers who are authorised, in accordance with the procedure established in legal acts, to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles and who have paid the initial membership fee. The insurer who is authorised to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles in the Republic of Lithuania may conduct such business only after the insurer becomes a member of the Bureau.

2. Members of the Bureau shall have equal rights when participating in the activities of the Bureau.

3. When participating in the activities of the Bureau, member of the Bureau shall have the following rights:

1) to attend and vote in the general meeting of members of the Bureau;

2) to have access to the Bureau’s documents and information that the Bureau possesses on the Bureau’s activities;

3) to use the services provided by the Bureau;

4) to take legal action to court to overturn the decisions or actions taken by the general meeting of members of the Bureau, the Council of the Bureau and the head of the Bureau where such decisions or actions are in conflict with legal acts;

5) to conclude a voting agreement or an agreement on the transfer of voting rights with another member of the Bureau;

6) to withdraw from the Bureau.

4. Members of the Bureau shall:

1) act in accordance with the provisions of this Law and other legal acts, implement the decisions taken by the general meeting of members of the Bureau and the Council of the Bureau;

2) transfer to the Bureau contributions from the premiums of compulsory insurance against civil liability in respect of the use of motor vehicles (hereinafter referred to as “contributions by members of the Bureau”) in accordance with the procedure and in the amounts set forth by the Government or by an institution authorised by the Government;

3) provide, free-of-charge, the Bureau with information necessary for the performance of its functions;

4) reimburse the Bureau for the expenses related to claims handling and payment of compensation where the Bureau paid compensation for damage instead of the respective insurer;

5) inform immediately the Bureau in the event of acquiring the status of an undertaking in liquidation or bankruptcy.

5. Members of the Bureau may have other rights and obligations established in the Law on Associations and the Statutes of the Bureau.

6. The rights of a member of the Bureau shall be lost:

1) from the date on which the supervisory institution notifies the Bureau of the suspension or cancellation of the insurer’s authorisation to conduct the business of compulsory insurance against civil liability in respect of the use of motor vehicles, effected as a sanction against the insurer;

2) when the general meeting of members of the Bureau adopts a decision to revoke its rights as a member of the Bureau, taking into account its request to withdraw from the Bureau;

3) when the insurer acquires the status of an undertaking in liquidation or bankruptcy.

7. A member of the Bureau may withdraw from the Bureau not earlier than 6 months after giving a written notice and a written statement of withdrawal from the business of compulsory insurance against civil liability in respect of the use of motor vehicles to the general meeting of members of the Bureau. The decision regarding the removal of a member of the Bureau from membership in the Bureau shall be taken by the general meeting of members of the Bureau.

8. A member of the Bureau shall lose its right to participate in the management of the Bureau (to vote in decision-taking) if:

1) it fails to transfer contributions as a member of the Bureau or any part thereof to the Bureau within 5 days of the date set by the Government or by an institution authorised by the Government;

2) within 30 days of the reminder to provide information necessary for the Bureau to perform its functions, it fails to provide such information to the Bureau.

9. The right to participate in the management of the Bureau (to vote in decision-taking) shall be restored as soon as contributions are transferred and any late-payment interest is paid or information necessary for the Bureau to perform its functions is provided. The loss of the right to participate in the management of the Bureau (to vote in decision-taking) shall not release a member of the Bureau from its obligations as a member of the Bureau and its commitments under insurance contracts. If contributions are not transferred or the information necessary for the Bureau to perform its functions is not delivered within 25 days of the date when the right to participate in the management of the Bureau (to vote in decision-taking) was lost, the Bureau shall notify the supervisory institution thereof and the latter shall take a decision on imposing sanctions provided for in the Law on Insurance. A member of the Bureau who has lost its rights as member of the Bureau subject to subparagraph 1 of paragraph 6 of this Article may be reinstated only by a decision of the supervisory institution.

10. The loss of the rights of a member of the Bureau shall not release a member of the Bureau from its commitments under insurance contracts and obligations to the Bureau.