The legal force of publicity of the commercial register
Company formation and accounting in Latvia
Last updated: 2012-07-10
Entries in the commercial register enter into force with respect to third parties from the day of announcement (this applies only to cases in which the records are correct and the records are correctly/properly announced). And this provision does not apply to legal activities which occurred within 15 days after the announcement, if a third party can prove that did not know and could not know about these entries.
For the third persons legally binding is information recorded in the commercial register and not submitted documents.

If the information that must be recorded in the commercial register is not recorded or is recorded, but not announced, the person on whose behalf this information should be recorded, can not use the information against a third person, except if the third party was aware of this information.
It does not matter why the information is not recorded or not announced.

If the information that must be recorded in the commercial register, is recorded or announced not correctly, then the third party in relation to the person on whose behalf such information had to be recorded, may refer to the announced information, except if the third party knew that the announced information does not correspond to the actual legal situation or the information recorded in the commercial register.

If information, documents or other correspondence is sent to a merchant’s legal address that is recorded / registered in the commercial register, then it is believed that the merchant has received the documents, information or other correspondence, if the sender has documentary proved, that the correspondence is sent.
So a merchant can not rely on the fact that actual address is not the same as registered address (legal address).

In the above written text are mentioned words 'third person'. What means with 'third person'? The Administrative District Court of the Republic of Latvia has made a decision that the aim of the Commercial law is to protect interests of those subjects (third persons), that engage in transactions with legal persons. And not to facilitate the possibility for public authorities within administrative proceedings to ascertain the actual circumstances.
So, for example if a public authority buys something from a legal person, then the public authority is the third person in meaning of the Commercial law. But if a public authority starts administrative proceedings in relation of a legal person, then the public authority is not the third person in meaning of article 12 of the Commercial law.



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