Advanced Search

Amendments To The Law "on Joint Stock Companies"

Original Language Title: Grozījumi likumā "Par akciju sabiedrībām"

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on joint stock companies" make law "on limited liability companies" (the Republic of Latvia Supreme Council and Government Informant, 1993, 24/25.nr.; The Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1994, no. 17; 1995, nr. 3, 20; 1996, no. 21; 1997, no. 13; in 1998, No 7; 1999, no. 18; 2000, no 2, 10.) the following amendments: 1. Replace the words "the whole law securities market Commission" (fold) with the words "financial and capital market Commission" (fold).
2. Add to chapter I the term "authorised capital" explanation in the sentence the following wording: "authorised capital may not be less than the company paid capital."
3. Express article 1, fourth subparagraph by the following: "4. insurance companies if they set up as corporations, governed by this law, the insurance company and the supervisory law, law on securities" and the other, in accordance with the regulations issued. "
4. Turn off article 13, third subparagraph, second sentence.
5. To turn off the second paragraph of article 14 of the second sentence.
6. Add to article 20 of the sixth to the second sentence as follows: "If the original registered capital is reached, the shares of the company, increasing its share capital, is to be determined according to the size of the registered share capital, which shall not be less than the paid share capital of the company."
7. Express article 21, the fourth and fifth by the following: "4. the Bank, credit institutions and insurance companies in the share capital of shares can invest only money, except for the fifth subparagraph, of this article provides for the case. This provision shall not apply to cases in which the financial and capital market Commission authorisation: 1) combines two or more banks or bank one is added to the other bank, enterprise or company;
2) combines two or more insurance undertakings or one insurance company is added to the other insurance company, enterprise or company.
5. Banks, other credit institutions or insurance company's share capital may invest in real things just by the financial and capital market Commission permission. "
8. Turn article 22, first paragraph, the word "size".
9. Express article 38 the third paragraph as follows: "3. The banks, other credit institutions, insurance corporations and pension funds, private equity and reduction is necessary for financial and capital market Commission permission."
10. Add to the second paragraph of article 41.1 "after shares of the company's shareholders are given the opportunity to exercise their pre-emptive rights in accordance with article 46 of this law".
11. Express article 42 in the second subparagraph of paragraph 7 as follows: "7) article 38 of this law, in the third part, in the cases provided for in the financial and capital market Commission permission."
12. To make the first paragraph of article 47 of the fourth sentence as follows: "the application shall be attached to the copy of the minutes of the general meeting of shareholders, the text of the amendment of the Statute and the rules of the share capital reduction, but article 38 of this law in the third part, also in the cases provided for in the financial and capital market Commission permission."
13. To make article 50 the second subparagraph by the following: "2. If the Management Board of the company has no current shareholders general meeting of the society, within the time limit laid down in the statutes, which may not be longer than the first part of this article, the time limit provided for in the general meeting of shareholders, the current may be convened: 1) joint stock companies;
2) sworn auditor;
3) Audit Commission;
4) Republic of Latvia enterprise register of notaries public;
5) the liquidator. "
52. Article 14, first paragraph: replace the words "it turns out that lost one-third of the share capital of" with the words "it turns out that a company's equity equals two-thirds or less than two-thirds of the paid share capital";
exclude the words "and with the existing property cannot meet its debt obligations."
15. the third paragraph of article 78: make the first sentence as follows: "the company's Board has the right to remove at any time any member of the duties assigned to him if in bad or gross negligence committed or if he does not meet the job position or the work fulfilled.";
Add to part with the sentence the following wording: "evil intent and gross negligence, within the meaning of this article shall be determined in accordance with the provisions of the civil code."
16. Article 79 of the Present third and fourth subparagraph by the following: "3. the shares of the company for each financial year an annual report must be drawn up, as a single whole consisting of the balance sheet, income statement, statement of changes in equity, cash flow statement and the notes, as well as the report of the Management Board of the company.
4. the annual accounts must give a true and fair view of the company's assets, liabilities, its financial position, cash flow and profit or loss. "
17. off article 80, first paragraph, the words "the social sphere for want of charity."
18. Article 87: make the first paragraph by the following: "1. the certified auditor elected by the general meeting of shareholders. Sworn auditor checks each annual report reporting period. Decide on a sworn auditor replacement can only be a general meeting of shareholders at the request of the Board or Council, as well as at the request of the shareholders in the second paragraph of this article. ";
make the third subparagraph by the following: "3. the certified auditor may be a person who is certified in accordance with the law" on sworn auditors ' requirements. ';
to supplement the article with a fifth by the following: "5. the company shall notify the enterprise register of the Republic of Latvia on the sworn auditor's election or replacement within 15 days after the general meeting, in which it happened, giving the sworn auditor elected by the name and number of the certificate."
19. transitional provisions: replace paragraph 7, the words "article 58 of the law amended the first and the seventh part" with the words "amendments to article 58 of the law in the seventh part";
transitional provisions be supplemented with 10 and 11 of the following paragraph: "the amendments to the law 10 58 in the first subparagraph of article (for shareholder voting remotely) shall enter into force six months after the entry into force of the law on the legal status of electronic documents.
11. Amendment of article 21 of the law in the fourth and fifth paragraphs of article 38, the third subparagraph of article 42 the second subparagraph of paragraph 7, article 47 in the first part of the amendment, as well as throughout the law concerning the word "securities market Commission" (fold) the substitution of the words "financial and capital market Commission" (fold) shall enter into force on 1 July 2001. "
The law adopted by the Parliament in June 1, 2000.
State v. President Vaira Vīķe-Freiberga in Riga 2000 June 20.