JSC Latvijas Krājbanka                            13.12.2004.



Krajbanka has been registered in the Commercial register



Latvijas Krajbanka was registred in the Commercial register on 10th of December

of 2004 with a joint registration number : 40003098527.



Approved statutes of Latvijas Krajbanka are fallowing:



1. FIRM

1.1. The firm of the Joint-Stock Company: Joint-Stock Company “Latvijas Krājbanka” 

(hereinafter – the Bank).

2. TYPES OF COMMERCIAL ACTIVITY

2.1. The Bank shall perform the commercial activity of such a type:

2.1.1. financial mediation, except for insurance and funding of pensions (NACE 65.2.

 group “Other financial mediation”) and operation supplementing the financial mediation

 (NACE 67.1. group “Operation supplementing the financial mediation, except for insurance

 and funding of pensions”) including:

2.1.1.1. attraction of deposits and other repayable means;

2.1.1.2. crediting, also in accordance with conditions of financial leasing;

2.1.1.3. performance of cash and non-cash payments;

2.1.1.4. issue and servicing non-cash payment means (all payment means, except banknotes 

and coins in any currency);

2.1.1.5. trading on behalf of the Bank or client with currency;

2.1.1.6. operations of confidence (trust);

2.1.1.7. provision of investing services and of supplementary investing services;

2.1.1.8. issuance of guarantees and other deeds of liability under which the obligation 

is undertaken to be liable towards the creditor for the debt of a third party;

2.1.1.9. keeping of valuables;

2.1.1.10. consultations to the clients on matters of financial character;

2.1.1.11. provision of such information related to settlement of debt liabilities of the

client;

2.1.1.12. other transactions that in substance are similar to the above-said financial

 services;

2.1.2.1. collection of cash and valuables;

2.1.2.2. ensuring of the security-guarding and internal safety of the Bank (NACE 74.6).

2.2. In the case when the Bank pursuant to the law is entitled to engage in any of the 

above-said types of commercial activity only after reception of a special permission or 

licence or registration, the Bank shall start the respective type of commercial activity 

only after the actual reception of such special permission or licence or registration.

3. FIXED CAPITAL

3.1. The fixed capital of the Bank is 9 106 412 (nine million one hundred six thousand 

four hundred twelve) lats.

4. SHARES

4.1. The fixed capital of the Bank is formed out of 9 106 412 (nine million one hundred 

six thousand four hundred twelve) shares of one category and they all have equal right 

to reception of the dividend, reception of the liquidation quota and to the voting right 

at the shareholders’ meeting.

4.2. Each paid-up share gives the right at the shareholders’ meeting to one vote.

4.3. The par value of each share is 1 (one) lat.

4.4. All shares are dematerialised bearer’s shares.

5. ADMINISTRATION

5.1. The Bank is administered by the Shareholders’ Meeting, Council and Board.

5.2. The Shareholders’ Meeting is the highest administration institution of the Bank.

5.3. The Shareholders’ Meeting is entitled to decide if it is attended by the shareholders,

 which represent at least one half of the paid-up fixed capital.

5.4. If the ordinary of extraordinary Shareholders’ Meeting is not entitled to decide due 

to shortage of the quorum, the Board at the latest within one month a repeated calling 

of the ordinary or extraordinary Shareholders’ Meeting. The repeatedly called Shareholders’

 Meeting with the same agenda is entitled to decide irrespective of the number of votes 

represented at it.

5.5. The Shareholders’ Meeting adopts resolutions with the majority of the votes of the 

present shareholders with the voting right. Resolutions on making of amendments in the 

Charter, amending the objectives of the Bank’s activity, merging with other companies and 

liquidation of the Bank are adopted by the Shareholders’ Meeting if in favour of such 

resolutions votes are cast by the shareholders, which represent at least three fourths of 

the paid-up fixed capital.

5.6. The Council is composed of 9 (nine) members. The Council is elected for the period of

 3 years.

5.7. The Council adopts resolutions with a simple majority of votes.

5.8. The number of the Board’s members is 5 (five).

5.9. The Board adopts resolutions with a simple majority of votes.

5.10. The Board’s Chairman is entitled to represent the Bank separately, but other Board’s 

members – each together with two Board’s members.

5.11. From the members of the Board the Council appoints the Board’s Chairman (President) 

and First Deputy of the Board’s Chairman (First Vice President).

5.12. The Board’s activity is administered by the Board’s Chairman (President), but during 

his absence – by the First Deputy of the Board’s Chairman (of the President) (First Vice 

President).

5.13. The Board for deciding of important issues necessitates the consent of the Council. 

Such important issues shall be considered to be:

- approval of general operation principles, among them the policies governing the operation;

- approval of documents that regulate the credit policy;

- approval of Bank’s budget and operation plan;

- acquisition of interest at other companies, its increase, reduction and termination;

- adoption of such resolution at investment companies, in which the Bank has interest, that 

are within the competence of the meeting of the participants of the respective investment 

company;

- purchase of real estate, alienation, mortgaging or encumbering with the material rights of 

real estate owned by the Bank;

- approval of regulations for granting of credits to the Bank’s employees;

- establishing of branches and representation offices and termination of their operation;

- election and recalling of members of the board and council at other companies, at which 

the 

Bank has interest;

- appointment of the proxy at commercial companies, at which the Bank has interest. 

5.14. The Shareholders’ Meeting, Council and Board are not entitled to adopt resolutions 

which 

are in contradiction to the laws of the Latvian Republic, binding instructions of the 

Finances and Capital Market Commission and Bank of Latvia, Privatisation Regulations and 

resolutions of the board of the Privatisation Agency.

6. INSTITUTIONS OF AUDIT AND CONTROL

6.1. The statements of the Bank’s operation are verified by the auditor, who gives the 

opinion about them, but the everyday internal audits and control are performed by the 

special audit service formed by the Council – Internal Audit. It acts within the scope of 

the powers stated by the Council, under the task and in subordination to the Council.

The Council elects the manager of the Internal Audit of the Bank at the recommendation of 

the Council’s Chairman, but the employees are taken into employment and dismissed by the 

Board’s Chairman (President), upon previous co-ordination with the Council.

6.2. Auditor (sworn accountant) is elected at the Shareholders’ Meeting. The Board prepares 

and submits to Shareholders’ Meeting the proposal about the candidacy of the sworn accountant. The Board after the election of the auditor (sworn accountant) on behalf of the Bank concludes the contract with 

him/her.