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Answer: Pursuant to the Section 194 of the Commercial Law of the Republic of Latvia (Commercial Law), Shareholders have the right to receive information from the board of directors regarding the activities of the company and to become acquainted with all of the company’s documents. These rights may be restricted in each concrete case by a decision of a meeting of shareholders if there is a justified suspicion that the shareholder may utilise the information acquired in contradiction to the aims of the company, and thus causing significant harm or losses to the company.

Pursuant to the Section 213, Paragraph (3), Subparagraph 3 of the Commercial Law, the board of directors has an obligation to convene a meeting of shareholders if it is requested by shareholders who represent not less than 10 % of the equity capital of the company.

Pursuant to the Section 172 Paragraph (2) of the Commercial law, a company has the duty to bring an action against the persons referred to in Paragraph one of this Section, also if that is requested by a minority of shareholders who jointly represent not less than one twentieth (5%) of the equity capital or whose participation in the equity capital of the company is not less than 50 000 lats. Such request by a minority of shareholders shall be submitted to that institution of the company which, in accordance with this Law, has the right to bring an action (against the board or the council if there is such), but if such institution does not bring the action in a court within one month, the minority of shareholders may bring an action in a court without the intermediation of this institution.

Pursuant to the Section 176 Paragraph (2) of the Commercial law, The board of directors, the council or shareholders, who jointly represent not less than one tenth of the equity capital, may, during a meeting of shareholders or not later than two months after the meeting of shareholders, raise substantiated objections to the elected auditor. Objections raised at a meeting of shareholders shall be immediately decided by the meeting itself, but if such objections are raised later, the disputed issue shall be decided by a meeting of shareholders to be convened not later than within two months after the objections have been received by the board of directors. If the objections are rejected, the shareholders who have raised them, who jointly represent not less than one tenth (10%) of the equity capital, have the right, at their own expense, to invite another auditor. If such other auditor is invited, the status and scope of the rights of the elected auditor shall not change.

Pursuant to the Section 179 Paragraph (3) of the Commercial law, The approval of the annual accounts of a company at a meeting of shareholders shall be postponed if, disputing the correctness of separate positions in the annual accounts, the postponement is requested by shareholders who represent at least one tenth (10%) of the equity capital.

Pursuant to the Section 183 Paragraph (2) of the Commercial law, Shareholders, who represent not less than one twentieth (5%) of the equity capital of the company, may request the conduct of an internal audit if there is a substantiated reason for it.

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