Enhancements to Subsidiaries' Articles by Liven AS in Estonia

Revisions to Subsidiaries’ Articles of Association by Liven AS

Liven AS has made significant updates to the articles of association for its subsidiaries registered in Estonia. These updates ensure that the subsidiaries can establish a voluntary reserve, thereby enhancing their financial flexibility and potential for growth. Notably, these amendments affect a range of subsidiaries that are classified as significant according to Nasdaq Tallinn criteria.

Details of Affected Subsidiaries

Among the subsidiaries impacted by these changes are:

• Liven Kodu OÜ
• Liven Kodu 6 OÜ
• Liven Kodu 12 OÜ
• Liven Kodu 14 OÜ
• Liven Kodu 15 OÜ
• Liven Kodu 16 OÜ
• Liven Kodu 18 OÜ
• Liven Kodu 20 OÜ

Understanding the Voluntary Reserve

These revisions introduce the concept of a voluntary reserve into the governance of the company. Essentially, this means that shareholders can opt to establish one or more voluntary reserves, which can be drawn from the annual net profits of the company or via additional financial contributions. This flexibility in financial management allows Liven AS and its subsidiaries to adapt to changing business landscapes and optimize their capital structure.

Contribution and Use of the Voluntary Reserve

Contributions to such reserves can be made in various forms, including cash or other assets. The management is responsible for assessing the value of any non-cash contributions. Following the establishment of a voluntary reserve, all shareholders are required to contribute based on their shareholdings, ensuring an equitable approach to funding this reserve. This structure not only fosters a sense of shareholder responsibility but also enhances the company’s overall capital efficiency.

Protection of Shareholders’ Interests

The voluntary reserves, once established, are acknowledged as part of the company’s equity capital. They offer a buffer that can be utilized to cover any losses, contribute to share capital increases, or enable distributions to shareholders, subject to shareholder resolutions. Importantly, payments from the reserves are proportionate to each shareholder’s contributions, allowing for transparency and fairness in financial distributions.

Next Steps for Registration

As these amendments undergo the required formal registration by the Tartu District Court Registration Department, they will enhance the legal framework within which Liven AS operates. Upon completion, the revised articles of association will be accessible in the e-business register, allowing for transparency and public access to the company’s operational framework.

About Liven AS and Contact Information

Liven AS is committed to ensuring robust governance and financial practices across its subsidiaries. The updates to the articles of association reflect a proactive approach to enhancing the company's operational capabilities within the evolving market landscape.

For more details, Joonas Joost, the CFO of Liven AS, reiterates the importance of these changes. He can be reached at:

Email: joonas.joost@liven.ee

Frequently Asked Questions

What are the articles of association?

Articles of association are legal documents defining the governance, regulations, and operational guidelines of a company.

Why did Liven AS amend its articles of association?

The amendments were made to allow subsidiaries to establish voluntary reserves, enhancing financial flexibility.

What subsidiaries are affected by these changes?

Subsidiaries including Liven Kodu OÜ and several others are impacted by the new regulations.

How does the voluntary reserve function?

The voluntary reserve can be funded through profits or additional contributions and is a buffer for future financial needs.

Who manages the contributions to the voluntary reserves?

The management of Liven AS oversees the contributions and valuation of any assets added to the reserves.

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