30.11.2024 Newsflash from ZAB Kronbergs Čukste Levin SIA November, 2024
30.11.2024

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Commercial Law updated to include provisions on Board Member Leave

On December 10 this year, amendments to the Commercial Law will come into force, which define the procedure for members of the board to exercise their right to parental leave.  According to the new procedure, a member of the board is obliged to notify the shareholders of the planned leave in a timely manner, and the notice on the use of parental leave should be submitted no later than one month prior to the commencement of the leave. During the period of leave, the board member's powers shall be suspended, the person shall be deemed not to have the status of a board member and the board member may not perform his/her duties. The shareholders may elect a new board member to replace the board member on leave for the duration of the leave. The Board member is required to notify the company of the planned return to office at least 14 days in advance, and the powers of the member of the board resume on the day following the end of the leave. The company is obliged to register the changes to the board with the Commercial Register.

Requirements for e-invoicing

On October 31, 2024, Saeima approved amendments to the Accounting Law, requiring invoices to be presented as structured electronic invoices. The changes will be phased in gradually. From January 1, 2025, e-invoices must be used for Business to Government (B2G) payments. From January 1, 2026, e-invoices must also be used for B2B (Business to Business) payments between companies registered in Latvia. The changes to the law also provide for transitional arrangements and solutions for the circulation of e-invoices.

Amendments to the Civil Procedure Law

On 12 November 2024, the Cabinet of Ministers approved amendments to the Civil Procedure Law, which will modify the procedures for calculating state fees and improve the procedure for service of notice of enforcement. The amendments provide for a cap on the state fee, changes to the regulation on costs related to the hearing of a case and amendments to speed up the procedure for enforcement on notice.

Cabinet of Ministers approves funding for businesses to digitize processes

At the end of November, the Cabinet of Ministers approved a program of more than €27 million in support from European Union funds. The funding is intended for companies to digitize their internal business processes - purchasing off-the-shelf solutions, hardware, sensors, equipment, software and information technology infrastructure, licenses, installation and customization, and related consultancy. The funding source is the EU Recovery Fund.

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