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Many commercial businesses are suffering under the current circumstances and are looking to re-negotiate the terms of their lease. Below is a short overview of the opportunities provided by Latvian law to assist tenants with this kind of negotiations.

Although amendments to the Commercial Law regarding the possibility for shareholders to participate in meetings using electronic means of communication have been discussed for a long time, the state of emergency due to COVID-19 in Latvia and social distancing restrictions require the legislator to act immediately.

A new opportunity for Latvian entrepreneurs was presented on 5 March at The Nasdaq Riga bell ceremony – the European Union (EU) funding program to attract capital on the stock exchange. The new instrument offers a wide range of funding opportunities for the issuance of shares and corporate bonds by small and medium-sized enterprises.

Governments in each of Baltic countries has adopted a special temporary laws on measures for companies to manage the consequences of the spread of coronavirus. See summarized legislation amendments concerning support to enterprises and tax solutions which were implemented by Latvia, Lithuania and Estonia.

The same as the majority of the European countries, Latvia also, first of all, thinks about solidarity between the state and entrepreneurs on the prevention of the immediate unemployment situation. In order to motivate entrepreneurs affected by the crisis not to discharge employees, having idle-time, and to try to wait for the transfer from the crisis and restrictive measures, the state offers to pay out idle-time benefit for employees of the companies, temporarily not being able to employ and pay out a salary to them during the period of idle-time as a result of the crisis. Since the Cabinet of Ministers extended emergency situation until 9 June, idle-time benefit will be available until 30 June.

Gessel has advised Polimex Mostostal on the acquisition of a majority stake in Energomontaz – Polnoc Belchatow, a specialized designer, producer, and installer of steel structures, power generation devices, and industrial operations. BDO Legal reportedly advised Energomontaz - Polnoc Belchatow on the deal.

BDO Law at a Glance

BDO Law is independent, constantly growing and developing juridical company that provides advice on all aspects of business law in Latvia. BDO Law in 2016 became the associate firm of BDO - one of the leading global groups of auditing and financial services providers, encompassing over 1,800 offices in 167 countries and territories, with more than 400 lawyers operating in it.

BDO Law have the knowledge and experience to assist clients in all fields of law. However they are particularly recognized and regularly highly ranked for expertise in commercial and corporate law, tax, dispute resolution, banking and finance, intellectual property and real estate. The experience of BDO Law’s experts are appreciated by Top 100 companies in Latvia, as well as foreign investors, which allows them to perform complicated projects and create state-of-art solutions.

As part of a multidisciplinary organization, BDO Law team offers legal support in close cooperation with colleagues from the audit, tax, and advisory areas. Their international presence gives them a global vision of business and allows to advise their clients with the support of a strong, dynamic network which offers industry and legislation specific knowledge in each country.

BDO Law team members often appear as speakers on various conferences of national and international level. BDO Law experts are also frequently quoted in the leading business media and are authors of publications on topical issues.

Find out more at bdolaw.lv