The equity is denominated by maintaining the existing proportionality between the shareholders of a capital company and minimising the changes of the equity. The equity of a capital company consists of the number of shares multiplied by the nominal value of one share.
- The amount of the equity and the nominal value of one share must be expressed in whole euro, and they may not be expressed in cents.
- The nominal value of one share is recalculated based on the current euro exchange rate.
- The recalculated amount is rounded down
- A certain amount remains after the denomination of each share of the equity; this amount is paid to the shareholders of the company in proportion to the shares held by them or these values are transferred into the reserves of the capital company.
- Only a value that cannot be expressed in new shares at current nominal value may be transferred into the reserves or paid to the shareholders, while maintaining the proportionality with respect to the shareholders.
- The scope of the rights of members may not be reduced as a result of the denomination. In other words, where before the denomination a member holds shares above any specified threshold granting certain rights to the member (5 %, 10 %, 1/3 of the equity), it must not be reduced as a result of the denomination (for example, from 10 % to 9.99 %).
- As a result of the denomination, the equity may be reduced by the maximum of 30 % (for example, from 1 LVL to 1 EUR); however, it is only allowed when the remaining amount cannot be used for the issue of new shares at current nominal value of one share, while maintaining the proportionality of existing shareholders.
In order to convert the equity into euro, follow the steps described below or use a calculator.