Re-registration of the Share Capital to Euro in Latvia
From January 1, 2014 till July 30, 2016 Capital company must re-register its share capital in the Register of Enterprises.
The share capital re-registration does not occur automatically, because only the merchant is able to make amendments in his own documents and shareholders control the saving of proportionality as regards participation in the share capital.
Share capital re-registration procedure is established in the Law on the Procedure for Introducing the Euro and in the Latvian Commercial Law.
Limited liability companies must submit their current shareholder register in the Register of Enterprises till June 30, 2015.
The example for mathematical recalculation
The share capital LVL 2000 and the nominal value of the share LVL 1; total – 2000 shares.
Shareholder A: 800 shares (40%)
Shareholder B: 1200 shares (60%)
1) Recalculation of shares (LVL) to euro
LVL 1 = 1,42 euro
2) Rounding down the share (according to amendments of Commercial Law)
EUR 1,42 -> EUR 1
3) Share capital (LVL) recalculation to euro
LVL 2000 : 0,702804 = EUR 2845,74
4) Calculation of remaining balance
EUR 2845,74 – EUR 2000 = EUR 845,74
5) Balance expression in new shares (EUR), establishing share amount for each shareholder
845,74 : 100 x 40% = 338
845,74 : 100 x 60% = 507
6) Final shares division
Shareholder A: 338 + 800 = 1138 shares (40%)
Shareholder B: 507 +1200 = 1707 shares (60%)
7) Payment of the balance or including it in reserves
If it is not possible to recalculate new shares as it is showed in section 5, then the balance is paid out for shareholders or it is included in company’s reserves.
845,74 – 845 = EUR 0,74
AFTER THE RECALCULATION IN EURO
The share capital - EUR 2845 and the nominal value of the share - EUR 1
Shareholder A: 1138 shares (40%)
Shareholder B: 1707 shares (60%)
Shareholders decision on amendments to Articles of Association
Update of Shareholders register
Submission of the new wording of Articles of Association and Shareholders register to Register of Enterprises