Latvia, Legislation, Markets and Companies

Companies that meet several criteria, for instance, net turnover in excess of LVL 15 million and staff of over 50 people, could have councils again – for example, Latvenergo power utility, Latvijas Dzelzcels railroad company, Latvijas Valsts mezi forestry company, and others, said Pavluts.

The decision to liquidate company councils has not solved the problem of politicization of companies' management, at the same time, an important element of management of state-owned companies was lost. Pavluts said however that this time, there will be no "universal soldiers" on companies' councils – council members will be allowed to combine working on no more than three councils, writes LETA.

In the meantime, ministries continue analyzing state companies to decide, which government-run companies will be sold, which will remain to be state property, and which will be reorganized to become state authorities and agencies. The relevant proposals will be drawn up by the end of the year.

One option is to establish a Centralized Management Institution for the management of most companies that will continue as state-owned companies. The institution could begin to work from January 1 next year, its annual budget could be LVL 430,000.