Glossary

Capital share (kapitāla daļa)

In Latvian: Kapitāla daļa

Companies Updated

A capital share (kapitāla daļa) is a unit of the share capital of a Latvian SIA that gives its member the right to take part in management, in profit and, on liquidation, in the company's property. Its nominal value is set in the articles and may not be less than one cent.

A share cannot be split, and each share gets an individual, permanent sequence number. The articles may create classes of shares with different rights, for example to dividends or to votes at the meeting of members.

A member may freely transfer a share unless the law or the articles say otherwise, but the transaction must be in writing. Giving or exchanging a share needs the members' consent unless the articles say otherwise, and on a sale the other members have a right of pre-emption.

The Commercial Law uses "pamatkapitāla daļa" or simply "daļa"; in a joint-stock company the shares are called stocks (akcijas).

Example

SIA "Ozols" has EUR 2,800 of share capital divided into 2,800 shares of EUR 1. A member with 700 shares owns 25% of the capital and, unless the articles say otherwise, 25% of the votes at the meeting of members.

Legal basis

This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.