6. Division of the Register of Shareholders
A Division of the Register of Shareholders is a document that records the complete list of shareholders and the allocation of shares. It shall be signed by the chairperson of the executive board or by a member of the executive board acting under a power of attorney signed by all members of the executive board.
The document must specify:
- the company name (firm name);
- the registered office;
- the title of the document, "Division of the Register of Shareholders";
- the sequential number of the division;
- the date of the division;
- the sequential number of the entry;
- information on the shareholder(s) who are natural persons: given name, surname, personal identity number (if a person does not have a personal identity number issued by the Republic of Latvia, the date of birth, the number and date of issue of the identity document, and the country and authority that issued the document shall be indicated instead), and the address at which the person may be reached;
- the shareholder's email address (if the shareholder has requested that it be used for communication with the company);
- the serial numbers of the shares held by the shareholder;
- the category of shares held by each shareholder, if the company has more than one category of shares;
- the number of shares held by each shareholder;
- the nominal value of a share;
- the number of votes attached to the shares held by each shareholder;
- for fully paid shares, the payment status need not be indicated;
- if shares are jointly owned by several persons, the joint representative appointed in accordance with Section 157 of the Commercial Law shall be indicated, specifying the representative's given name, surname, personal identity number (if the representative does not have a personal identity number issued by the Republic of Latvia, the date of birth, the number and date of issue of the identity document, and the country and authority that issued the document shall be indicated instead), and the address at which the representative may be reached.
Upon incorporation of the company, a division with the sequential number 1 must be prepared. A separate entry must be made for each shareholder, and the numbering of entries must commence with number 1 (for example, if there are three shareholders, the entry numbers shall be 1, 2 and 3). The serial numbers of shares must correspond to the number of shares held by each shareholder (for example, if there are two shareholders and each holds 10 shares, the serial numbers of the shares shall be 1–10 and 11–20, respectively).
Each share entitles the shareholder to one vote, unless otherwise provided in the Articles of Association. The Division of the Register of Shareholders must, among other things, specify the number of votes attached to the shares. For example, if a shareholder holds 50 shares in the company and, in accordance with the Articles of Association, each share carries one vote, the Division of the Register of Shareholders shall indicate that the shareholder has 50 votes attached to the shares. If, however, a shareholder holds 50 shares and, in accordance with the Articles of Association, each share carries three votes, the Division of the Register of Shareholders shall indicate that the shareholder has 150 votes attached to the shares.