In English, the Latvian term akciju sabiedrība is translated as stock company by the Commercial Law[1] of Latvia.
Akciju sabiedrība is usually set up if intended to carry out a business requiring large investments.
Since stock is a security, the raising of public capital by issuing new stock makes it easier to attract more investment than by offering shares to a closed range of applicants, as is the case with the limited liability company (LLC or SIA in Latvian).
[3] In addition, certain laws specifically require certain types of commercial activity to be conducted only by companies in the legal form of AS, such as banking, insurance, etc.
This law is overseen by the Financial and Capital Market Commission[8] The liability of Akciju sabiedrība is limited.
The meeting of stockholders is the highest management body of the stock company, which has the right to decide on any issue.
Only the meeting of stockholders is entitled to make decisions on the amendment of the articles of association, increase or decrease of the equity etc.
The title may not contain the expression "Latvijas Republika” (Republic of Latvia) or its translation into a foreign language.