Model of corporate governance

The business model of AST is a joint stock company operating in accordance with the Statutes, the Governance Law, the Commercial Law and other applicable laws and regulations.

AST is an independent Transmission System Operator of the Republic of Latvia, which provides transmission system services and ensures balancing and stability in the transmission system. According to the issued licence No. E12001, Section 11, Paragraph one of the Electricity Market Law, AST is the only TSO in Latvia, and its licence area is the entire territory of Latvia.

The owner of all AST shares is the Ministry of Finance of the Republic of Latvia (100%).

The Cabinet of Ministers exercises the competence of the AST Shareholder. The shareholder implements the governance of AST together with the Shareholders’ Meeting, the Management Board and the Supervisory Board within the competence specified in the Governance Law.

The representative of the State’s share makes decisions within the competence of the AST Shareholders’ Meeting.

During the intervals between Shareholders’ Meetings, the interests of the shareholder of AST are represented by the Supervisory Board that uses carefully selected and effective management tools to supervise the activities of the AST Management Board. The Cabinet of Ministers, in accordance with the size indicators of AST, determines the number of members of the AST Supervisory Board. Applicable binding laws and regulations determine the term of the members of the AST Supervisory Board.

The day-to-day management of AST shares, jointly managing and representing AST, is carried out by its executive body, the Management Board. The Cabinet of Ministers in accordance with the size indicators of AST determines the number of members of the AST Management Board. Applicable binding laws and regulations determine the term of the members of the AST Management Board.

An appropriate and transparent organisational structure is established for the size indicators of AST, for strategic development and for the effective management of operational risks.

The AST Management Board organises its work according to the functional principle: each board member is responsible for a certain field of activity according to their professional knowledge, experience and competencies in the respective area of responsibility: the chairman - management, and members of the board - system management, development, support, and operation.

+Articles of Association

Articles of Association of "Augstsprieguma tīkls" AS, approved by the Shareholders’ Meeting on 28 May 2021

+The Corporate Governance Policy

The Corporate Governance Policy of Augstsprieguma tīkls AS has been developed taking into account the regulatory enactments of the Republic of Latvia, the principles of corporate governance and recommendations regarding their implementation developed by NASDAQ OMX Riga AS, and development recommendations for corporate governance made by the European Union and Organization for Economic Co-operation, as well as by reviewing and summarising the corporate governance practices of Augstsprieguma tīkls AS.

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