| Corporative legislation |
- Ltd companies incorporated according to "The Commercial Law" form 2000.
|
| A company statute |
- Every company has a statute, which determines its name and what it may do (its objects).
|
Limited liability
|
- A company may have limited liability for its members.
|
Directors
|
- The directors are responsible for the management of the company.
- The members of the company decide who are to be the directors.
- This will normally be done in a general meeting, though a company can make decisions by written resolution signed by all the members entitled to vote.
|
Organizational meeting
|
- An organizational meeting of the members is held during which the members adopt the statute, subscribe to all capital, elect the members of the initial board of directors and the auditor(accountant), and have the incorporation form notarised.
- The company must have at least one member.
- Companies capital of LVL 2 000 should be paid before incorporation.
- The share capital is transferred to a blocked account at a Latvian bank to be held in the name of the company until the company is registered.
|
| Shareholders meetings |
- A general meeting of shareholders must be held annually within four months after the close of the financial year. The shareholders vote on the approval of the annual report and financial statements, pass resolutions on the agenda and elect the directors and auditors for their statutory term.
- Extraordinary shareholders meetings can also be convened by the board of directors or the auditor.
|
