Corporate matters

When two or more people establish a joint company, the beginning is almost always harmonious. Everyone believes in the idea, roles seem self-evident, and discussing money and power feels almost out of place amidst the wave of enthusiasm. However, it is precisely at this moment that the foundations for future conflicts are laid. Nuances emerge […]

On May 30, 2024, the Saeima adopted amendments to the Commercial Law, which established an obligation for joint-stock companies (AS) to specify the type of shares in their articles of association—registered or dematerialized shares—by July 1, 2026. Why the Reform is Happening The joint-stock company reform is part of broader amendments to the Commercial Law

When a company becomes insolvent, the risk for a board member becomes personal. Creditors have not recovered their money, there are no funds in the company’s accounts, and the administrator begins to assess whether losses can be recovered from the former management. This is not a rare situation. Data from the Insolvency Control Service shows

In Latvian commercial law practice, it is not uncommon for the sole member of an LLC to also be its sole board member. However, this combined role often leads to one of the most frequent misunderstandings when discussing liability. Member and Board Member – Two Distinct Legal Entities The Commercial Law regulates these two statuses