We’ve been told in a bank that member of the board of our company has to renew his representation rights in the Register of Enterprises since the term of his representation right has expired. What documents shall we submit to the Register of Enterprises and how long will it take to renew his representation rights?

According to the Commercial Law, the board of directors is the executive body of the company, which manages and represents the company. All members of the board of directors have representation rights. Members of the board of directors shall represent the company jointly if the articles of association do not specify otherwise. A member of the board of directors shall be elected for a period of three years, if the articles of association do not specify a shorter term. In case the term of representation rights has expired, the meeting of shareholders can take a decision to elect the member of the board for a new period.

The following documents shall be submitted to the Register of Enterprises for the renewal of the representation rights:

• application (Form No.18), which can be found on the website of the Register of Enterprises;
• the minutes of the meeting of shareholders or an extract of the minutes (if there are two or more shareholders in a company), or the decision of the sole shareholder;
• power of attorney issued to the person that will submit and receive the documents in the Register of Enterprises (if member of the board is not the person submitting the documents);
• Receipt for payment of the state fee in amount of LVL 10,- and receipt for publication in the newspaper Latvijas Vēstnesis in amount of LVL 8,-.

The Register of Enterprises shall examine the documents within 4 working days. If necessary the representation rights can be renewed also within 2 days, however, in this case the state fee shall be paid in amount of LVL 30,- (the payment for publication in Latvijas Vestnesis remains the same).