The Republic of LATVIA Cabinet of Ministers Regulations No. 121 (pr-Nr. 32 10) Issued in accordance with the law «on State and municipal property privatisation objects» article 2, second paragraph, point 3 342 on State and municipal property privatisation of objects by using the provisions on the method of the lay State and municipal property privatisation of objects by using the method of investing (hereafter referred to as «rules»), determines the order in which the State or local government property objects are privatised using the law «On State and municipal property privatisation objects» in article 2-method.
Investing in municipal property object incorporated companies must also comply with the law «On local governments».
These rules also apply when investing in State or municipal ownership of incorporated companies with foreign objects, capital investment in accordance with the law «on foreign investments in the Republic of Latvia "as well as investing in State and local government property objects for a nonprofit organization in accordance with the law «On non-profit organizations ' requirements.
1. the terms used in the rules and concepts-method: a State or municipal property object-property investment in share capital in the form of incorporated companies, if it is private equity.
State or local incorporated companies: national or local company with limited liability or State or municipal corporation.
State or municipal property object: the meaning of this provision: the State or the municipality incorporated companies; national or local company or a State or local Government of the incorporated companies and real estate assets, a separate unit (shop, site, etc.).
Subject to the terms of the privatisation-meaning: limited liability company, limited liability company, a company with additional responsibility and cooperative society, in which you can invest in State or municipal property.
Private equity — the meaning of these rules: capital, which belongs to the natural or legal person (including foreign natural and legal persons), excluding public companies or State and local Governments incorporated companies.
2. General provisions 2.1 these rules apply to all State and local government property objects, which are invested in incorporated companies, except for State and local government-owned housing stock and land.
2.2. Public property objects can privatise, investing all the object as a whole, it distributed over parts or separating from its individual parts and investing them separately.
2.3. the State or municipal property objects can invest in privatisation bodies who comply with the law «on State and municipal property privatisation objects» to the requirements of article 4.
2.4. Investment in the State or local government property the object move with the privatisation of the entity's property-and in accordance with the relevant treaty incorporated companies and governing law provisions.
2.5. State or municipal property object can invest: 1) by establishing a new incorporated companies;
2) into an existing, increasing its share capital incorporated companies.
3.-3.1. Action State property object-is entitled to propose: 1) a public company (incorporated companies), which owns the property valuation;
2) national property Fund, the Ministry or other body which is located in the management company or incorporated companies, owning investment property object (hereinafter: «the governing body»);
3) subject of privatisation.
3.2. Municipal Property object-is entitled to propose: 1) company (incorporated companies), which owns the property valuation;
2) municipality, which is located in the management company of the municipal or local Government of the incorporated companies owning investment property object (hereafter referred to as «municipality»);
3) subject of privatisation.
3.3. the suggestion for State property object-should be submitted to the privatization agency.
3.4. the suggestion for the municipal property of the object to be submitted to the relevant authorities lay.
3.5. If the object of State property-State company proposes (incorporated companies) or subject to privatisation, privatisation proposal before submitting the privatisation Agency in writing should be aligned with the governing body.
3.6. Proposal for State or municipal property object-if it is laid by founding a new incorporated companies, must be accompanied by the following documents: 1) the memorandum of projects provided for in the relevant treaty law governing incorporated companies;
2) national or local company (incorporated companies), which owns the property valuation, registration certificate and a copy of the Statute, the current year's last quarterly report, the previous year's report and the auditor's opinion, and the burden of the obligations (mortgage contract, loan, loans, guarantees, etc.).
3.7. Proposal for State or municipal property object-if it is invested into an existing, increasing its share capital incorporated companies, must be accompanied by the following documents: 1) privatisation project documents subject for incorporated companies concerned to increase the share capital of the law governing incorporated companies;
2) privatisation of the entity registration certificate and a copy of the statutes, as well as the current year's last quarterly report, the previous year's report and the auditor's opinion, the State revenue service certificate that incorporated companies are actually paid statutory taxes and fees, as well as the commitment and the burden of all incorporated companies (mortgage contract, loan, loans, guarantees, etc.);
3) State or local company (incorporated companies), which owns the investment object, and the certificate of registration of the Statute-article, last year's quarterly report, the annual report and the auditor's opinion, as well as the commitment and burden (the mortgage contract, loan, loans, guarantees, etc.).
4. Authorization to the kind property and the object of the evaluation 4.1. authorisation to make State property object-going privatisation Agency.
4.2. authorisation to make municipal property object-going Municipal Council (the Council).
4.3. The privatisation agency decision on property investment acceptability or non-acceptability be adopted within one month from the date of receipt of the proposal and the decision must be notified to the applicant, the proposed national company (incorporated companies) and the governing body.
4.4. If-State or municipal property object contains the property for which the former owner or his heirs have filed an application for its recovery, and Moreover, he has not chosen a compensation in accordance with the law «On the restoration of property rights to businesses and other property objects», the privatisation agency or municipality prior to the authorization of an activity referred to in the Act the privatisation of the State property Commission.
4.5. If-State or municipal property object contains the property in respect of which the former owner or his heirs have filed an application for its recovery, in accordance with the law «About homeownership denacionalizācij in the Republic of Latvia Law On property» and «checkin» the rightful owners, the privatisation agency or municipality prior to the authorization of an activity to separate this from the kind of property object and save it in the possession of the State or local authorities until a decision on the return of the rightful owner.
4.6. Valuation of property in the State object to the evaluation of the organized the privatization agency.
The privatisation Agency to contract with the local Government can make the municipal property object.
4.7. pašvaldībasjpašum object in the Valuation assessment 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».
4.8. If the investment is done in existing shares of the company, increasing its share capital. The privatisation Agency and the privatization Commission carried out the law «On limited liability companies article 31 for the "expert features.
4.9. the national and local Investment Property object should be evaluated in accordance with the law «On privatizējam of State and municipal property assessment procedures» object.
4.10. Fee for the kind of object assessment must be performed by the State or municipality (incorporated companies), the company which owns the investment in State or municipal property object, or subject to privatisation. Then, to make the payment for the kind of object to be specified in a proposal for the property object.
5. The investment made and registering 5.1 after the authorization property object-authority or governing authorities to subject privatization to appoint a general meeting be convened shall state or municipal governors and their employment contract entered into with the law «on State and municipal property management incorporated companies».

The appointed Governor of a State or local Government can not meet the founders of the privatisation of the entity's functions, and to sign the founding documents.
5.2. The Registrar of companies, registration of newly incorporated companies founded or incorporated companies share capital increase shall be charged to the privatisation agency or local permit investment and its evaluation, as well as governing bodies or local government decision on the State or local government the appointment of Governors.
5.3. national or local proxy-process: 1) must be submitted to the privatization agency or municipality that rule 3.6 or 3.7 documents provided by Enterprise registry;
2) should report to the privatisation agency or municipality, governing body and to the Registrar of companies, if-else is made to rules than privatisation agency or local permit.
5.4. The commercial register shall not be entitled to register the newly incorporated companies established or incorporated companies already in the capital increase, which is laid in State or municipal property object to breaches of the privatization agency or local in-allows.
5.5. the employer within one month of the incorporated companies encountered or if the existing share capital increase of incorporated companies registration in the commercial register shall publish a notice concerning the assessment of the investment and its official newspaper «Latvijas journal» and the local newspaper, in which the subject of privatisation.
6. The privatization of State property passed to object-or reorganization 6.1. Privatisation Agency may itself decide on State property object-if this object to the privatisation of property.
The whole object of the privatisation Agency at the time of privatisation in accordance of the law «on State and municipal property privatisation objects» is the State property in the privatizējam object in the governing body.
6.2. the privatization agency may invest State property object-incorporated companies: 1) for this object's privatization rules;
2) if privatizējam object privatizēj with the customer, the sales method, renounces certain things;
3) if the company or incorporated companies as a result of liquidation by creditors is left unrealized assets.
6.3. If, in accordance with the approved State property privatisation rules object of the capital, the State property the object-subject of privatisation, expected to privatise, the shareholders are the privatisation Agency.
The dividend, which will be calculated on these shares, included in the national budget.
State Governors appointed by the capital privatization agency this provision in paragraph 5.1.
6.4. If a public company or incorporated companies in accordance with the procedure laid down in the law on privatisation, then transferred the privatisation Agency is empowered to take a decision on the reorganization of the company or incorporated companies, adding it to existing incorporated companies, or merge them with other businesses and incorporated companies, creating a new incorporated companies.
The new incorporated companies go in or attached or incorporated companies, the joint undertaking's obligations and rights. Adding company or companies, they should observe the law «On business» in article 35.
The privatisation Agency sorts all questions about this company or incorporated companies banned from the business register.
7. final question privatisation Agency has the right to take legal action for the limited liability companies and joint stock companies of annulment, if the legal relationship to which the Treaty is based, is arguably under the requirements of the law in the following cases: 1 if the equity of incorporated companies) part of the Privatization Agency;
2 If the established this incorporated companies) a public company or incorporated companies as a result of privatization.
Prime Minister v. Birkavs, Minister of the economy, Deputy Prime Minister o. KEHR. Riga 11994. on 21 June