Shareholder in an AS (akcionārs)
In Latvian: Akcionārs
A shareholder (akcionārs) is a member of a Latvian joint-stock company (AS) who owns its stock. A stock is a security that gives the right to take part in the company's management, receive dividends and, on liquidation, a liquidation quota.
Shareholders decide at the shareholders' meeting, which alone may decide on the annual report, the use of profit, the election and removal of supervisory board members and amendments to the articles. In an AS the supervisory board, not the shareholders, elects the management board.
Like an SIA member, a shareholder is not liable for the company's obligations. AS stock may be publicly traded, so the shareholder base can change as stock is sold on a regulated market, if it is listed there.
A legal entity need not report a beneficial owner to the Enterprise Register when that person is a shareholder in an AS listed on a regulated market and control comes only from that shareholding.
Example
An investor holds 5,000 of the 100,000 single-class stocks of AS "Bērzs", or 5%. If the shareholders' meeting decides to pay a dividend of EUR 0.40 per stock, the investor is entitled to EUR 2,000.
Legal basis
- Commercial Law, Section 226 likumi.lv
- Commercial Law, Section 268 likumi.lv
- Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, Section 18.2, Paragraph six likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.