Management board (valde)
In Latvian: Valde
The management board (valde) is the executive body of a Latvian capital company that runs and represents it. It may have one or more members, and only a natural person with legal capacity can be a board member.
Every board member has the right of representation. Unless the articles say otherwise, board members represent the company jointly. The articles may let each member represent the company alone, and the representation rights are entered in the Commercial Register.
In an SIA the meeting of members elects and removes board members; in an AS the supervisory board elects them for five years unless the articles set a shorter term. A board member must act as a careful and prudent manager, and board members are jointly liable for losses they cause the company.
A board member is not the same as a procurator: a procurator represents the merchant under a commercial power of attorney but does not manage the company.
Example
The articles of SIA "Ozols" say its two board members represent the company only jointly. So a EUR 12,000 supply contract is signed by both of them. A counterparty can check who may sign what in the Commercial Register entry.
Legal basis
- Commercial Law, Section 221 likumi.lv
- Commercial Law, Section 223 likumi.lv
- Commercial Law, Section 169 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.