The new draft law is intended to apply to capital companies whose shares are listed on a regulated market and meet a number of criteria:
- the company's registered office will have been located in Latvia for two reporting years;
- an average number of employees of at least 250;
- a net turnover of at least EUR 50 million or a balance sheet total of at least EUR 43 million.
Given these provisions, the draft law will apply to a very small number of capital companies.
According to the data available in the database of AS "Nasdaq Riga" as of September 19, 2024, there are two such capital companies in Latvia, the annotation of the draft law states.
These companies will be required to ensure that the under-represented gender holds at least 40% of the Supervisory Board positions or that the under-represented gender holds at least 33% of all Supervisory Board and Management Board positions. If the draft law is approved, the companies concerned would have until June 30 2026 to comply with at least one of the requirements.
