The Cabinet supports significant improvements in the regulation of co-operative societies 08.08.2017
On Tuesday, 8 August, the Cabinet supported the draft law package with amendments to the regulation of the cooperative companies, elaborated by the Ministry of Justice, providing for significant changes and improvements in the operation of co-operative societies as well as eliminating the issues established in the current practice.
The draft law package (draft law “Co-operative Societies Law” and draft law “Amendments to the Law On the Enterprise Register of the Republic of Latvia) provides for the following changes.
Further on the co-operative societies shall not be divided into merchants and non-merchants (a status of a merchant for co-operative societies will be determined only in the case, if it will arise from special regulatory enactments, such as Law On Savings and Loan Associations).
It will not be provided anymore to separate the types of co-operative societies (apartment, boat and garage owners, agriculture and forestry services etc.). If the ministry of the relevant industry considers that a separate regulation is required for legal subjects of the particular industry (such as agriculture services, forestry services or apartment owners co-operative societies), such a regulation shall be integrated into a separate regulatory enactment.
Changes provide also for reduced foundation procedure for co-operative societies - the foundation meeting shall not be mandatory, the rights and obligations are specified and the volume of information to be specified in the articles of association is reduced).
Also the rights of a member will be strengthened (including the status of a member, admission, secession and dismissal), as well as improvements and easements are provided for the course of the general meeting of members and decision making (including a possibility to establish a meeting of representatives; decision making without convocation of the general meeting of members; the right to convoke the general meeting of members by using electronic means; the right to ensure electronic participation of a member during the general meeting of members; the right of a member to inform on his or her voting in writing before the general meeting).
The draft law determines the improved regulation for termination and liquidation of the operation of the co-operative societies, besides it includes the regulation of reorganisation.
It is possible to become acquainted with the draft law package HERE!