The Republic of LATVIA Cabinet of Ministers Regulations No. 216 (pr. No 57 2) Issued in accordance with the law «on State and municipal property privatisation objects» article 2 establishing procedures of privatisation with private capital raising method i. General questions 1. These rules shall determine the State or municipality of privatisation with private incorporated companies raising capital.
2. the privatization with attraction of private capital, on the subject of privatisation can be any natural or legal person who complies with the law «on State and municipal property privatisation objects» to the requirements of article 4.
3. the privatization with attraction of private capital, the privatisation of the object is public or municipal corporation or limited liability company.
4. Privatization, by using private capital raising method is implemented by increasing the State's share capital or municipality incorporated companies.
11. the initiation of Privatization and the adoption of the decision 5. Right to propose to carry out national or local authorities with the privatisation of private incorporated companies raising capital method is: any natural or legal person wishing to invest private capital; the holder of the shares; the privatisation of the object; The privatisation Agency; the relevant local authority.
The proposal must indicate the investor, as well as in private investment capital.
6. Privatisation Agency gathers suggestions, prepares estimates-we for the privatisation of State property of an object with private capital raising method and notify the object of privatisation.
7. the decision on the transfer of State incorporated companies adopt the privatization of the Cabinet of Ministers.
8. the relevant City Council, District Council or Parish Council collects suggestions and decide on the local transfer of privatization of incorporated companies.
III. Privatization and privatization of object started 9. not later than two weeks following the adoption of the decision on the transfer of State privatization of its incorporated companies shareholders passed and the privatisation agency takes over in his possession and incorporated companies make the law «on State and municipal property privatisation» fixed objects.
10. The privatization agency in their possession over the privatisation process of privatization of objects fulfils the function of the general meeting of this object set up for the type of business.
11. any privatisation of the entity may submit a proposal for a State or local Government of the capital increase, or incorporated companies the privatization project deadline, the privatisation agency or local published notice.
Privatisation privatisation proposal or project must include the following information: 1) object name;
2} object address;
3 the proposed privatization method) and privatization measures;
4) and increase in share capital;
5) object action or its use after privatisation;
6) subject of privatisation — physical person: first name, surname, nationality and passport data, ID number, address, telephone, telex or telefax number;
the privatisation of the entity — legal persons: the name, legal address, authorized persons name, surname, telephone, telex or telefax number. If the subject of privatisation is a legal person, to be added to this privatisation proposal for legal person of a copy of the registration certificate.
12. State property object in Privatizējam assessment is organised by the privatisation Agency.
The privatization agency, on the basis of a contract with the municipality, the municipality may arrange property object.
13. in the municipal property of the Privatizējam object evaluation is organised by municipal property privatisation Commission (hereafter referred to as «the privatisation Commission»), established and operating in accordance with the law «on State and municipal property privatisation Commission».
14. Payment for the privatizējam object of the assessment made by the State or municipalities incorporated companies being privatized, or subject to privatisation. Privatisation privatisation proposal or project must bear with the object of assessment costs.
15. State of privatisation rules and incorporated companies, arrangements shall be made for the evaluation, develop the object the privatisation Agency and the law «On State and municipal property privatisation objects» duly published notice of these provisions and the adoption of the agenda, as well as the right to subject privatization to become acquainted with them.
16. the municipalities submit the privatisation project incorporated companies privatisation, but the review and approval of the City Council, District Council or Parish Council law «on State and municipal property privatisation objects» in article 41.
IV. increase of the share capital or municipality of the State joint stock company in the share capital increase of 17 companies, privatizēj of shares by private capital raising method, can only be done by involving additional capital.
18. the shares of the company's shareholders have no pre-emptive right to purchase new shares. The right to buy shares is only subject to privatisation.
19. If the shares of the company have also invested in private equity, but all votes for and owned by the State or local government capital increase are settled with money, then current shareholders may be pre-emptive rights to new shares, if provided or approved privatization privatisation project.
20. the privatization of State shares of the company are also the provisions of the stock release rules, approve them and stock sale price determined by the privatisation Agency.
The municipal corporations of the privatisation project is simultaneously with the release of the rules, approved by the City Council, District Council or Parish Council.
21. If the shares of the company's articles of association must contain provisions for the reserve and it is accumulated for each stock must pay the fees corresponding to at least the replacement part, according to last year's balance sheet to each previous release stock.
22. The stock sale price must not be less than their nominal value.
23. If the release within the time limits provided for in the terms of share capital in the amount of announced shares is not signed, the privatisation agency or the City Council, District Council or Parish Council admit equities on the release occurred, or occurred only in the values of shares subscribed (if it is provided or approved privatisation privatisation project).
24. If the privatisation agency or the City Council, District Council or Parish Council has held the stock release of not having taken place, a privatisation agency or privatisation Commission made appropriate amendments to the Charter of the company and notify the Registrar of companies.
25. If the privatisation agency or the City Council, District Council or Parish Council has held the stock release to have occurred, the privatisation agency or Commission of privatisation shall convene the general meeting of shareholders, which flowed into joint stock companies and the regulatory authorities to the Act the privatisation of the company presented to them things, and also declares that the privatization is completed by this method.
26. If the share capital increase, with the involvement of additional capital embodied things va intellectual property in a way, the law «On limited liability companies "referred to in article 31 expert functions which determine investment value by the privatisation agency or the local government created the privatisation Commission.
The share capital increase v. State or local societies with limited liability 27. public limited liability share capital can be increased by new members who invest their own capital, they deposit money daj or covering this part of the value with the property contribution. The use of property rights may not be a financial contribution.
28. limited liability companies with existing players, increasing the share capital, not pre-emptive rights to the shares to be sold. The right to purchase the equity sold daj is only subject to privatisation.
29. the national societies with limited liability provisions of the privatisation, which is also new actors, confirms the terms of the privatisation Agency.
Municipal limited liability company privatisation project, which is also new actors into the rules, approved by the City Council, District Council or Parish Council.
30. If a new limited liability company members of the capital value of the investment covered by, the property investment appraisal organized and carried out privatisation privatisation agency or Commission.
31. If privatization or privatisation projects approved within the time limits laid down in the proposed investment has been made, the privatisation agency or the City Council, District Council or Parish Council may decide that the share capital is amended by the amount actually invested, or believe about the increase that has occurred and not give away invested money and belongings. In both cases, should be amended accordingly in the statutes.

32. If the share capital increase has occurred, the agency or the privatisation of privatisation Commission convened a meeting of members of the public, which flowed in the governing bodies of the company, and with the Act submitted to the privatized companies, as well as case announces that the privatization is completed by this method.
VI. final questions 33. by State or municipal corporation or limited liability company privatization with attraction of private capital in the newly incorporated companies method in the share of private capital must not be less than 25% of the company's share capital.
34. If the share capital increase of foreign investors and the investment of all or part of more than one million us dollars or its equivalent in other convertible currency, as well as in the law «On foreign investments in the Republic of Latvia "6. in the cases referred to in article 1, the agency or the privatisation of privatisation Commission before committing investment shall inform the Latvian development agency, which gives testimony in accordance with the provisions of the Act.
35. all documents related to the increase of the share capital in privatization, draw up and submit to the Registrar of companies or the privatisation of the privatisation Agency Commission.
The privatization agency, on the basis of a contract with the municipality, the municipality may be developed in the capital plielin-incorporated companies for you to carry out the necessary documents.
VII. Transition issues 36. Privatization of the released State incorporated companies state capital is the Act the privatisation Agency «On State and local property management companies».
37. If, after the entry into force of these provisions will be established with private capital, the State company that owns the only private capital bezbals shares, then such a formation can take place only with the authorisation of the privatisation Agency at |.
Prime Minister m. cock economic Minister j. caller 1994 in Riga on November 15.