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.
Recalculation of shares (LVL) to euro
LVL 1 = 1,423 euro
Rounding down the share (according to amendments of Commercial Law)
EUR 1,423 -> EUR 1
Recalculation of share capital (LVL) to euro
LVL 2000 x 1,42287= EUR 2845,74
New shares (EUR), establishing share amount for each shareholder
Share capital 2000LVL (=2845,74EUR).
The nominal value of the share 10 LVL = 14 EUR.
2 shareholdes:
Shareholder A: shares (40%)
Shareholder B: shares (60%)
Calculations:
1. Shareholder A:
2845,74/100x40
____________ = 81,31 ( 81 share)
14
2. Shareholder B
2845,74/100x60
_____________ = 121,96 (122 shares)
14
Total share capital EUR
(81 + 121) x 14 = 2828 EUR
Payment of the balance or including it in reserves
If it is not possible to include the difference in new shares then the balance is paid out for shareholders or it is included in company’s reserves.
2845,74 – 2828 = 17,74 EUR
