Implementation and scope

The Second Company Law Directive was implemented into Latvian law by the Commercial Law (Komerclikums) adopted on 13 April 2000, effective as of 1 January 2002. The adoption of the Commercial Law was the outcome of company law reform in Latvia and the Second Company Law Directive, as amended, was implemented into the initial draft of the Commercial Law and consequently adopted by the Parliament. The amendments to the Directive introduced by Directive 2006/68/EC of 6 September 2006 were implemented by amendments to the Commercial Law of 24 April 2008.

The scope of the Second Company Law Directive is limited to public limited liability companies. In accordance with the Directive, the joint-stock company (akciju sabiedrība (“AS”)) is the public limited liability company under Latvian law to which the Directive applies. The Latvian legislator has extended certain rules of the Directive to also cover limited liability companies (sabiedrība ar ierobežotu atbildību (“SIA”)).