Latvia's immigration focuses on the Latvian economy: According to news from the BNT Law and Consulting Company on June 10, in recent years, malicious acquisitions by speculators have rapidly increased. To protect the interests of shareholders in private limited companies and joint-stock companies, Latvia has amended its Commercial Law.
The new provisions, which will take effect on July 1, expand the role of notaries. In certain cases, the involvement of notaries becomes a legal requirement or is stipulated in shareholder agreements. The regulation of equity disposal and the enforcement of preemptive rights will also be stricter. If shareholders agree to notarize the share purchase agreement, the notary (rather than a board member) must inform other shareholders about the possibility of share transfer and the exercise of preemptive rights. If preemptive rights are violated, the affected shareholder can redeem the equity at the price specified in the contract or notice; if it can be proven that the actual price is lower than the contract or notice price, they can redeem the equity at an even lower price. The new Commercial Law stipulates that board members must report changes in shareholders within 3 days. The transfer of shares in private limited companies is only completed after the official registration authority decides to accept the share transfer application.
