Estonia is one of the most representative economies of the
Baltic region. Foreign investors interested in
opening a company limited by shares in Estonia should know the
rights and obligations of the shareholders, as prescribed by the
Estonian legislation. According to the legislation available here, there are six legal entities available for the
incorporation of a company, out of which two are registered through
share capital to which the
shareholders participate.
Our Estonian company formation specialists can offer you more information on the
legislation applicable to shareholders.
The rights of Estonian shareholders
The shareholders in Estonia are entitled to receive the following property rights:
• receive a certain share of the company profits in the form of dividends;
• to receive shares;
• to receive a proportion of the assets of the company, if the company is in liquidation process;
According to the Estonian Commercial Code, the shareholders are entitled to number of non-property rights, which may refer to the following:
• participate at the general meetings;
• vote in the general meetings in accordance to the voting rights given by the shares owned in the company;
• receive information from the management board related to the activities and operations undertaken by the company;
• call on a general meeting of the shareholders in the company, as long as the shareholder owns at least 10% of the shares in the company.
Competence of the shareholders in Estonia
The
Estonian legislation states that during the general meeting, which has to take place within six months before the end of the financial year, the
shareholders have the right to change
provisions of the Articles of Associations, to increase or reduce the
share capital or to distribute the
profit of the company.
When
establishing a private limited liability company, the minimum
share capital necessary at the
incorporation process is of EUR 2,500. In the case of
public limited liability company or joint stock company, the minimum required
share capital is of EUR 25,000.