The Supreme Council of the
Republic of Latvia has adopted a Law

On Renewal of Property Rights to Undertakings and Other Property Objects

Terms Used in this Law

Current assets shall be funds, raw materials, seed, heating fuel, materials, procured products and goods, containers, unfinished products and uncompleted orders, annual plants, finished products, goods and completed orders, harvest, draft and productive animals, tools and inventory items, which are intended for short-term (less than a year) utilisation, and other fungible or consumable property necessary for the operation of an undertaking.

The approved privatisation project shall be a project of sale or other alienation of a State or local government undertaking, which intends participation of private capital, approved in accordance with the procedures specified in legislation.

Fixed capital (statutory fund) shall be the capital of an incorporated company formed from investment of participants thereof in the incorporated company.

Within the meaning of this Law, fixed assets shall be buildings, structures, machine tool benches, machinery, facilities, transport vehicles, unfinished buildings and structures and uninstalled machine tool benches, machinery and facilities, tools and inventory items, which are intended for long-term (longer than a year) utilisation, and other items for long-term (longer than a year) utilisation, which are necessary for operation of an undertaking, except for land.

Within the meaning of this Law, an application shall be an application of the former owner of an undertaking or his or her heirs regarding the renewal of property rights, which is submitted in accordance with the procedures provided for in the Decision of the Supreme Council of the Republic of Latvia of 31 March 1992, On Acceptance of Applications from Owners - Natural Persons - of Nationalised and Other Unlawfully Deprived Immovable Property (Undertakings and Other Property Objects) (Latvijas Republikas Augstākās Padomes un Valdības ziņotājs, 1992, No. 15/16), as well as an application regarding the renewal of property rights, which is submitted in accordance with the procedures specified in the Law On Land Reform in the Cities of the Republic of Latvia up to 20 June 1992 and in accordance with the procedures specified in the Law On Privatisation of Land in Rural Areas up to 31 December 1992, if a submitter has requested the renewal of property rights in the application on site.

A list of undertakings to be privatised shall be a list of State or local government undertakings to be privatised, which is published in accordance with the procedures specified in legislation.

Within the meaning of this Law, an incorporated company shall be a joint stock company, a co-operative share company, a company with supplemental liability and a company with limited liability.

Within the meaning of this Law, an undertaking shall be a property object - an undertaking, a hotel, a cinema, a pharmacy, a hospital or another property object (except for buildings and land), the composition of which had included immovable property.

A property object transferred for privatisation - a State or local government property object, regarding which a decision regarding the transfer thereof for privatisation has been taken in accordance with the Law.

[6 October 1994; 10 October 1996]

Chapter 1
General Provisions

Section 1. Application of this Law

(1) This Law prescribes the procedures for the renewal and recognition of the property rights of former owners or their heirs to undertakings, hotels, cinemas, pharmacies, hospitals and other property objects, composition of which had included an immovable property and which have been nationalised or otherwise unlawfully deprived due to the arbitrariness of State or local government institutions (hereinafter - nationalised). The former owner or his or her heir shall be granted a compensation in privatisation certificates or renewed property rights to nationalised undertakings, hotels, cinemas, pharmacies, hospitals and other property objects, if an undertaking is located in a building property belonging to the owner of the undertaking, but the building property is not included on the balance-sheet of the undertaking.

(2) This Law shall not apply to building properties and land.

(3) The norms of this Law shall be applicable if it has not been specified otherwise in the Law on Completion of State and Local Government Property Privatisation and Utilisation of Privatisation Certificates.

[10 October 1996]

Section 2. Persons to Whom Property Rights are Renewed

(1) Property rights shall be renewed to:

1) natural persons who owned the whole undertaking at the time of nationalisation or heirs thereof;

2) natural persons who at the time of nationalisation owned the undertaking on the basis of joint ownership rights or as a joint ownership of property; and

3) legal persons, if it is provided for by a separate law.

(2) [6 October 1994]

[6 October 1994]

Section 3. Types of Renewal and Recognition of Property Rights

(1) Property rights to an undertaking shall be renewed by returning the undertaking to the former owner or his or her heirs.

(2) Property rights shall be recognised:

1) by assigning a corresponding share of the fixed capital (statutory fund) (shares, co-operative shares, parts) in an incorporated company converted from the undertaking to the former owner or his or her heirs; or

2) by granting compensation in privatisation certificates.

[10 October 1996]

Section 4. Basis for Renewal of Property Rights

(1) Property rights of the former owner of an undertaking or his or her heirs shall be renewed, if they have submitted an application in accordance with the procedures specified in the Decision of the Supreme Council of the Republic of Latvia of 31 March 1992, On Acceptance of Applications from Owners - Natural Persons - of Nationalised and Other Unlawfully Deprived Immovable Property (Undertakings and Other Property Objects).

(2) [6 October 1994]

(3) [6 October 1994]

(4) [6 October 1994]

(5) In accordance with this Law property rights to an undertaking shall be renewed or recognised in such a way, as the former owner or his or her heirs have expressed their will in an application until 3 December 1994.

(6) If the former owner or his or her heirs have not expressed their will in an application until 3 December 1994 in order to recognise their property rights and grant compensation in privatisation certificates, it shall be assumed that the former owner has expressed a wish to renew or to recognise the property rights in accordance with Section 3, Paragraph two, Clauses 1 and 2 of this Law.

(7) If the former owner or his or her heirs have expressed a wish to renew the property rights until 3 December 1994, but they do not want to redeem the State or local government property share in the present undertaking, the undertaking shall be transformed in an incorporated company upon their wish, granting a corresponding share of the fixed capital to the former owner or his or her heirs.

(8) If the former owner or his or her heirs have not submitted an application regarding recognition of the property rights and granting of compensation in privatisation certificates for the nationalised undertaking until 30 June 1996, compensation shall not be granted.

[6 October 1994; 10 October 1996]

Section 5. Institutions Which Renew Property Rights

(1) All activities, which are related to the renewal or recognition of the property rights of the former owner or his or her heirs, determination of the value of the property of an undertaking and determination of the number of certificates to be granted for compensation, shall be carried out by:

1) the State stock company "Privatizācijas aģentūra" [Privatisation Agency] (hereinafter - Privatisation Agency) or the relevant State property privatisation commission in respect of the undertaking (company), which is included on the list of property objects transferred for privatisation or alienation. The Privatisation Agency shall determine the value of the property of the undertaking (company) and the amount of privatisation certificates to be granted for compensation;

2) [10 October 1996]; or

3) the relevant local government council (board), which supervises the local government undertaking (company) or which supervises the local government undertaking (company) where the property is located, regarding which an application has been submitted.

(2) The Ministry of Economics shall take a decision regarding the type of renewal or recognition of property rights of the former owner or his or her heirs.

(3) A decision regarding the type, in which the property rights of the former owner or his or her heirs to an undertaking, as well as the property of an undertaking (incorporated company), which is in the composition of the local government undertaking (incorporated company), are to be renewed or recognised, shall be taken by the local government council (board), which supervises the relevant local government undertaking (company).

(4) Property rights to an undertaking, which has been transferred into the possession of a natural person or a legal person, who is not a legal person of State or local government accordingly, after nationalisation thereof, except for the cases referred to in Section 21, Paragraph one, Clauses 6 and 7 of this Law, shall be renewed by bringing an action to a court, if the former owner or his or her heirs have not reached an agreement regarding renewal of the property rights with the possessor of the undertaking. The possessor of the undertaking shall respond by returning or compensating to the former owner or his or her heirs a property of the undertaking, the value of which does not exceed the value of the property that has been transferred to the possessor of the undertaking by the State, local government or the former possessor. If the possessor of the undertaking - a legal person - owns State or local government capital shares, the possessor of the undertaking shall act in accordance with the conditions of Section 16, Paragraph three of this Law.

[6 October 1994; 10 October 1996; 13 June 2001; 22 June 2005]

Section 6. Restrictions for Renewal of Property Rights [10 October 1996]

Section 7. Amount of the Renewal of Property Rights and the Amount of Compensation

(1) Property rights shall be renewed to immovable and movable property of an undertaking, which is a part of fixed assets, and the amount of compensation shall be determined according to the value, in which the fixed assets have remained after the Second World War and which is recorded in the first inventory deeds of fixed assets drawn up after 8 May 1945.

(2) The composition and condition of such property shall be determined pursuant to the inventory deeds of fixed assets referred to in Paragraph one of this Section. The value of the property shall be determined according to such inventory deeds of fixed assets, but, if the former owner or his or her heirs doubt the evaluation of the property in the inventory deeds of fixed assets, which have been drawn up after 8 May 1945, the value of the property shall be determined according the composition and condition of the fixed assets of an undertaking recorded in the referred to inventory deeds pursuant to documents, which are submitted by the former owner or his or her heirs and in which value of fixed assets of the undertaking has been indicated, and which may be drawn up prior to 9 May 1945. The value of the property, to which the property rights of the former owner or his or her heirs are to be renewed, shall be calculated for determination of compensation or comparison with the present value of the property of undertaking, taking into account the price changes, according to the methodology approved by the Cabinet.

(3) If, in nationalising an undertaking, the former owner has been paid compensation, it shall be taken into account by reducing the value of the property, to which property rights are to be renewed, by the sum of such compensation according to the prices at the time when compensation was paid.

(4) [10 October 1996]

(5) [10 October 1996]

(6) If the former owner of an undertaking or his or her heirs doubt the value of the property determined in accordance with the procedures specified in this Section and the calculated increase of the value of the property, as well as in cases where documents, according to which the value of the property could be determined, have not been preserved, the former owner or his or her heirs may request to specify the composition and the value of the property at a court.

(7) The former owner or his or her heirs are not entitled to request a payment from the present owner of an undertaking (possessor of an undertaking) for utilisation of the undertaking to be returned and the received fruits. The present owner of an undertaking (possessor of an undertaking) is not entitled to request compensation from the former owner or his or her heirs for expenses that have been utilised for the maintenance of the undertaking.

[6 October 1994; 10 October 1996]

Section 8. Procedures for Submission and Preparation of Documents

(1) Property rights shall be renewed on the basis of:

1) an application and other documents submitted by the former owner or his or her heirs in accordance with the Decision of the Supreme Council of the Republic of Latvia of 31 March 1992, On Acceptance of Applications from Owners - Natural Persons - of Nationalised and Other Unlawfully Deprived Immovable Property (Undertakings and Other Property Objects). A district council or a city (town) council, a diplomatic institution or a consulate of the Republic of Latvia shall send the true copies (copies) of the received application and other documents to an institution, the duty of which is to renew the property rights to the relevant undertaking, within a time period of 10 days after receipt of the application. In case of uncertainties the true copies (copies) of the received application and other documents shall be sent to the Ministry of Economics. A submitter of the documents shall be notified regarding sending of the documents within a time period of 20 days;

2) documents confirming the property rights;

3) deeds of the first inventory of fixed assets carried out after 8 May 1945. Provision of such deeds shall be a duty of an institution, the task of which is to renew the property rights;

4) documents, which are submitted by the former owner or his or her heirs and in which the value of the constituents of the property are indicated. If such documents are not being submitted, the property value shall be calculated according to the documents referred to in Clause 3 of this Section; and

5) inventory deeds of the present property of the undertaking and other documents regarding evaluation of such property.

(2) Until 31 December 1996 all the documents attesting to the validity of renewal or recognition of the property rights shall be appended to an application submitted in accordance with the procedures specified in this Law.

(3) State and local government institutions, record-keeping of which includes an application of the former owner or his or her heirs regarding the renewal or recognition of the property rights, shall send the submitter a warning with a note regarding the documents missing for the renewal or recognition of the property rights, not later than two months prior to the time period referred to in this Section. If the missing documents are not submitted within the time period referred to in this Section, the institution that accepts and examines the documents regarding the renewal or recognition of the property rights shall not examine the application and shall notify the submitter regarding it in writing.

[6 October 1994; 10 October 1996]

Section 9. Documents Confirming Property Rights

A document confirming the renewed property rights shall be:

1) a decision of the Ministry of Economics in the form of an order or a decision of a city (town) council or a district, parish council in the form of an extract from a protocol regarding the return of an undertaking or granting of a share of the fixed capital (statutory fund) of an incorporated company to the former owner or his or her heirs. Only a court may recognise such decision as invalid;

2) a court adjudication regarding the return of an undertaking to the former owner or his or her heirs;

3) a property delivery and acceptance deed approved by a possessor of an undertaking and the owner who has renewed the property rights or his or her heirs; and

4) a contract regarding redemption of a State or local government property, if the property rights are renewed, in redeeming concurrently a share of the property of the present owner.

[6 October 1994; 10 October 1996]

Section 9.¹ Time Periods for the Renewal and Recognition of Property Rights and Granting of Compensation

(1) State and local government institutions referred to in Section 5, Paragraphs two and three of this Law shall take a decision regarding the renewal or recognition of the property rights within a time period of one year from the day when all the necessary documents confirming the property rights have been submitted. After such period of time the former owner or his or her heirs have the right to request the renewal or recognition of the property rights by judicial process.

(2) The State and local government institutions referred to in Section 5, Paragraph one, Clauses 1 and 3 of this Law shall carry out activities related to the transfer of the property, granting of the respective share of the fixed capital in an incorporated company or granting of compensation within a time period of six months from the day when a decision regarding the renewal or recognition of the property rights has been taken. After such period of time a person has the right to request the transfer of the property or granting of the respective share of the capital by judicial process.

(3) An institution, which renews or recognises property rights, shall be liable for the delay of the time period in accordance with the Civil Law.

(4) If the property or the respectively granted share of the fixed capital of an incorporated company has not been taken over due to the fault of a person to whom the property rights have been renewed or recognised within a time period of six months after taking of the relevant decision, the State or local government institution, which has taken a decision regarding renewal or recognition of the property rights, is entitled to amend the decision thereof and to grant compensation in privatisation certificates.

[10 October 1996; 22 June 2005]

Chapter 2
Return of Undertaking

Section 10. Cases where an Undertaking Is to Be Completely Returned to the Former Owner or His or Her Heirs

(1) An undertaking shall be returned to the former owner or his or her heirs, if they have submitted such application, as well as agreed to redeem the share of the property belonging to the State or a local government and if the present value of the property (fixed assets) of the undertaking after nationalisation has increased by no more than 55% in comparison with the value of the property of the nationalised undertaking or has reduced in comparison with the value of the property, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law.

(2) An undertaking shall be returned if the present value of the property (fixed assets) of the undertaking after nationalisation has increased by more than 55% in comparison with the value of the property of the nationalised undertaking, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law, if it is possible to separate technologically the nationalised undertaking on site the opportunity to continue entrepreneurship is preserved for the present owner.

(3) An undertaking shall also be returned if the present value of the property (fixed assets) of the undertaking after nationalisation has increased by more than 55% in comparison with the value of the property of the nationalised undertaking, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law, but the whole undertaking is located on a plot of land, to which the property rights have been renewed to the former owner or his or her heirs, and it is not possible to separate technologically the nationalised undertaking from the present undertaking.

[10 October 1996]

Section 11. Redemption of the Property Belonging to the Present Owner of an Undertaking

(1) Property of the present owner of an undertaking shall be the part of the undertaking's property, for the value of which the value of the present property exceeds the value of such property, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law and which has been invested in the undertaking after nationalisation by the State, a local government, a natural person or a legal person. Current assets of the undertaking shall be regarded as the property of the present owner of the undertaking.

(2) A person who has been renewed property rights and returned the former undertaking, shall be the successor of the rights and liabilities of all the returned present undertaking, also the rights and liabilities specified in employment contracts of employees and the collective employment contract of the undertaking.

(3) A person to whom the property rights to the former undertaking are renewed and who concurrently redeems all the property belonging to the State or local government in the present undertaking shall also become the successor of the rights and liabilities of the present undertaking. Such person is entitled to use privatisation certificates as the means of payment. Privatisation certificates may not be used for redemption of the funds of the undertaking and settlement of liabilities.

(4) If the present value of the property (fixed assets) of the present undertaking has increased by more than 55% in comparison with the value of the property, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law, and it is possible to separate technologically the nationalised undertaking on site, preserving the possibility to continue entrepreneurship for the present owner, the person to whom the property rights are renewed shall not take over the rights and liabilities of the present undertaking.

(5) The institutions referred to in Section 5, Paragraph one, Clauses 1 and 3 of this Law shall:

1) develop the provisions for the return of an undertaking, if the property rights are renewed to a person and a contract regarding redemption of the property belonging to the present owner is entered into with such person; and

2) submit a copy of a contract regarding redemption of the property belonging to the State to the Ministry of Economics.

(6) If the former owner of an undertaking or his or her heirs have expressed a wish to redeem the property belonging to the present owner of the undertaking in entering with him or her into a contract regarding the lease of the referred to property with redemption, the undertaking shall be managed as a joint property.

(7) If the property belonging to the present owner of an undertaking is being purchased on a hire-purchase with the transfer of the property rights to the former owner or his or her heirs immediately after entering into the contract, a claim of the present owner of the undertaking to payment of a debt shall be ensured by establishing pledge rights to the whole undertaking with this Law.

(8) Funds, which are obtained from redemption of the property belonging to the State or local government, shall be transferred into the State property privatisation account and privatisation accounts of the property of such local governments, in the territory of which the undertaking is located, in accordance with the Law of the Republic of Latvia of 9 December 1992 On State and Local Government Property Privatisation Funds (Latvijas Republikas Augstākās Padomes un Valdības Ziņotājs, 1993, No. 1/2).

[10 October 1996]

Section 12. Return of an Undertaking if an Application Has Been Submitted after 20 July 1992 [10 October 1996]

Section 13. Term for Return of an Undertaking [6 October 1994]

Section 14. Duties of the Owner of an Undertaking [10 October 1996]

Chapter 3
Conversion of Undertakings into Incorporated Companies

Section 15. Cases when Undertakings shall be Converted into Incorporated Companies

(1) An undertaking shall be converted into an incorporated company, the participants of which are the former owner or his or her heirs and the present owner of the undertaking, if the value of the present property of the undertaking has increased in comparison with the value of the property, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law, and the former owner or his or her heirs want to recover their part of the property, but do not want to redeem the part of the property belonging to the present owner of the undertaking.

(2) An undertaking shall also be converted into an incorporated company if it has belonged to several persons on the basis of joint property rights or as a joint ownership of the property and not all natural persons to whom the undertaking has belonged or their heirs have submitted an application regarding renewal of the property rights or also any of such persons or their heirs have selected compensation. The shares of the fixed capital (statutory fund), which would pertain to former owners or their heirs who have not submitted an application regarding renewal of the property rights or who have selected compensation, shall remain in the possession of the present owner until the return thereof to the former owners or their heirs on the basis of their application or until the privatisation or alienation of such shares in accordance with provisions of Section 20 of this Law.

(3) An undertaking shall also be converted into an incorporated company if the former owner or his or her heirs want to redeem the share of the property belonging to the present owner, but the value of the present property (fixed assets) of the undertaking has increased by more than 55% in comparison with the value of the property, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law, as well as if the property rights to the whole plot of land occupied by the present undertaking have not been renewed to the former owner or his or her heirs and it is not possible to separate the nationalised undertaking technologically on site.

(4) An incorporated company shall be the successor to the rights and liabilities of the whole converted present undertaking, also to the rights and liabilities specified in the employment contracts of employees and the collective employment contract of the undertaking.

(5) Institutions referred to in Section 5, Paragraph one, Clauses 1 and 3 of this Law shall draw up provisions for the privatisation or alienation, if the property rights must be recognised, granting a share of the fixed capital in an incorporated company.

[10 October 1996; 13 June 2001]

Section 16. Conversion of Undertakings into Incorporated Companies and Division of the Fixed Capital (Statutory Fund)

(1) Parts (shares, co-operative shares, parts) of the fixed capital (statutory fund) of an incorporated company shall be divided pursuant to the value of the parts of the property calculated in accordance with the procedures specified in Section 7 of this Law.

(2) Documents for the conversion of an undertaking into an incorporated company shall be prepared by the institution, the task of which is to renew the property rights.

(3) If an undertaking has already been converted into an incorporated company in accordance with the regulatory enactments of the Republic of Latvia regarding privatisation or with a permission of the Cabinet, also into an incorporated company with a share of the fixed capital (statutory fund) belonging to a foreign investor, the former owner shall be granted the corresponding share of the fixed capital (statutory fund) from the share (statutory fund) of the fixed capital remaining in possession of the State or local government. If an incorporated company does not include a share of the fixed capital (statutory fund) of the State or local government or it is not sufficient, compensation for the missing share shall be granted in privatisation certificates.

[6 October 1994]

Section 17. Conversion of Undertakings into Incorporated Companies if Applications Have Been Submitted after 20 July 1992 [6 October 1994]

Section 18. Term for Conversion of Undertakings into Incorporated Companies [10 October 1996]

Section 19. Duties of Incorporated Companies [10 October 1996]

Section 20. Privatisation of the Share of the State or Local Government Fixed Capital (Statutory Fund)

(1) A share of the fixed capital (statutory fund) belonging to the State or local government in an incorporated company shall be privatised or alienated in accordance with the procedures specified by the Law.

(2) A share of the fixed capital (statutory fund) reserved in an incorporated company for the former owner or his or her heirs may be alienated in accordance with the procedures specified by the Law, if an application regarding the renewal of property rights has not been submitted within a time period of one month after the day of coming into force of the Law of 6 October 1994 Amendments to the Law On Renewal of Property Rights to Undertakings and Other Property Objects.

Note. The condition of Section 20, Paragraph two shall not be applicable if a decision regarding alienation of the share of the fixed capital (statutory fund) has been taken and a privatisation application has been submitted in the time period from 1 July 1994 until the day of coming into force of the Law of 6 October 1994 Amendments to the Law On Renewal of Property Rights to Undertakings and Other Property Objects in accordance with the procedures specified in the Law.

[6 October 1994; 13 June 2001]

Chapter 4
Granting of Compensation

Section 21. Granting of Compensation

(1) Compensation for an undertaking shall be granted if:

1) the former owner or his or her heirs have selected compensation in the application, except for the cases referred to in Paragraph two of this Section;

2) the property rights cannot be renewed by returning an undertaking or converting it into an incorporated company and by granting the former owner or his or her heirs a corresponding share of the fixed capital (statutory fund) due to the reasons referred to in this Law or because the undertaking has not been preserved, except for the cases referred to in Paragraph two of this Section;

3) an application regarding the renewal of property rights to an undertaking has been submitted to a State or local government institution later than one month after the day of coming into force of the Law of 6 October 1994 Amendments to the Law On Renewal of Property Rights to Undertakings and Other Property Objects;

4) the composition of an undertaking has not included immovable property;

5) an undertaking has been alienated in accordance with the procedures specified in legislation by privatisation thereof;

6) State or local government institutions have alienated immovable property of an undertaking in return for a compensation on the basis of a notarially certified contract to a buyer of good faith - a natural person - or also have transferred in return for a compensation to a buyer of good faith - a legal person, who is not a State or local government legal person in the time period from the day of nationalisation up to 24 October 1990;

7) the former owner or his or her heirs have submitted an application after a decision of the Cabinet has been taken regarding transfer to privatisation of such property, composition of which includes the relevant undertaking, and privatisation provisions (privatisation project) have been approved;

8) a contract regarding the lease of the returned undertaking or a part thereof with redemption was entered into. In such case the State shall reimburse to the owner or his or her heirs the whole received redemption payment in the same funds, in which the redemption payment was received; or

9) a contract regarding the lease of the conversed undertaking or a part thereof with redemption was entered into. In such case the State or a local government shall reimburse to the former owner or his or her heirs the share of the received redemption payment, which is in proportion to the share of the former owner or his or her heirs in the fixed capital (statutory fund) of the incorporated company, in the same funds, in which the redemption payment was received.

(2) Compensation shall not be granted if:

1) an undertaking has been destroyed due to the warfare during the Second World War or also institutions or officials of the USSR or Germany have dispossessed movable property from 22 June 1941 until 9 May 1945;

2) the former owner or his or her heirs have voluntarily alienated an undertaking. Alienation carried out in order to pay or recover incommensurate taxes and fees shall not be regarded voluntary alienation;

3) the State or local government has not overtaken an undertaking into possession thereof after acceptance of the nationalisation deed and has not placed obstacles for economic activity of the owner in the undertaking. The fact that the former owner or his or heirs were forced to abandon the undertaking in the result of warfare of the Second World War, as well in order to avoid the possible repressive measures, shall also be regarded an obstacle.

(3) If entrepreneurship, which a State undertaking carries out at present in accordance with the Law On Entrepreneurship, is allowed to State undertakings only, the Cabinet is entitled not to return the undertaking to the former owner or his or her heirs, but to grant a compensation instead.

(4) Compensation to the former owner or his or her heirs shall be granted in accordance with the Law On Privatisation Certificates and this Law.

(5) If a court has rendered a decision regarding satisfaction of a property claim, but the amount of satisfaction is smaller than the value of the property, to which the property rights of the former owner or his or her heirs are to be renewed in accordance with Section 7 of this Law, the Ministry of Economics shall grant the former owner or his or her heirs a compensation for the missing part in privatisation certificates.

(6) If a possessor of an undertaking is the natural person or the legal person referred to in Paragraph one, Clauses 6 and 7 of this Section, the Ministry of Economics shall take a decision regarding granting of compensation in privatisation certificates and the Privatisation Agency shall determine the amount of privatisation certificates.

(7) [10 October 1996]

[6 October 1994; 10 October 1996; 13 June 2001; 22 June 2005]

Section 22. Terms for Granting of Compensation [10 October 1996]

Chapter 5
Examination of Complaints and Disputes

Section 23. Examination of Complaints and Disputes

(1) Complaints regarding actions (decisions) of the property privatisation commission of the State or local government or invasion of other interests of former owners or their heirs shall be examined in accordance with the procedures specified in the Law On State and Local Government Property Privatisation Commissions of 10 February 1994 (Latvijas Republikas Saeimas un Ministru Kabineta Ziņotājs, 1994, No. 6).

(2) Claims against the Ministry of Economics, a ministry, which supervises the State undertaking, the Privatisation Agency and other institutions specified in regulatory enactments, which conduct privatisation or alienation of an undertaking (a company), or a local government council (board), which supervises the local government undertaking, regarding inaction, legal validity of action (decisions) thereof, evaluation of property performed thereby, division of the fixed capital (statutory fund) of an incorporated company, calculation of compensation, as well as non-compliance with the terms and other issues related to renewal of property rights shall be examined by a court.

(3) Disputes among the former owners, their heirs and a possessor of undertaking, as well as other disputes related to renewal of property rights shall be examined by a court.

(4) Owners or their heirs shall be exempted from payment of the State fee if they require to prevent the invasion of their rights by judicial process in the cases provided for in this Section.

[6 October 1994; 13 June 2001]

Transitional Provisions

1. With the coming into force of this Law, Cabinet Regulation No. 125, Amendments to the Law On Renewal of Property Rights to Undertakings and Other Property Objects, issued in accordance with Article 81 of the Constitution (Latvijas Republikas Saeimas un Ministru Kabineta Ziņotājs, 1996, No. 14), is repealed.

2. [22 June 2005]

[10 October 1996; 13 June 2001; 22 June 2005]

Chairperson of the Supreme Council
of the Republic of Latvia A. Gorbunovs

Secretary of the Supreme Council
of the Republic of Latvia I. Daudišs

Rīga, 30 March 1993

Translation © 2007 Tulkošanas un terminoloģijas centrs (Translation and Terminology Centre)