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Latvia – New Transparency Requirements for Joint-Stock companies (Akciju Sabiedrība, AS)
Recent amendments to Latvian Company Law now require all Joint-Stock companies (Akciju Sabiedrība or AS) to disclose comprehensive shareholder information to the Enterprise Register.
This new legislation represents a significant step towards greater corporate transparency in Latvia and aligning with international best practices.
To facilitate compliance, the amendments allowed for a gradual approach. Companies may initially submit partial shareholder information when first registering their shareholder list. Complete shareholder details can be provided subsequently.
Additionally, companies are permitted to arrange share ownership rights in cases where shareholder information is incomplete or unavailable.
The risk of non-compliance
While there are no direct financial penalties for non-compliance, companies failing to meet this requirement will face restrictions on shareholder actions until full information is provided to the Enterprise Register.
Shareholders may lose their rights to:
- Vote at shareholder meetings
- Receive dividends
- Transfer or dispose of shares
