SIA Arsenal Industrial announces changes to its corporate governance structure, discontinuing its Supervisory Board and continuing to operate through the General Meeting of Shareholders and the Management Board.
The changes aim to simplify the company’s governance structure, reduce the administrative burden and accelerate operational and strategic decision-making.
Arsenal Industrial operates in the construction equipment rental and sales sector, where participation in public and private procurement procedures is an important part of its business. These procedures often require detailed information about both the company and the members of its governing bodies.
As certain members of the Supervisory Board represent the financial investor FlyCap Investment Fund I AIF and are not involved in the company’s day-to-day operations, these requirements create an additional administrative burden, extend document preparation and approval processes and, in some cases, may limit the company’s ability to respond promptly to tender opportunities.
The company’s management believes that, at its current stage of development, a governance structure in which the Management Board has full responsibility for day-to-day operations and operational decisions is more effective.
Shareholder interests and oversight mechanisms will remain safeguarded through the existing shareholders’ agreement, which specifies key matters requiring agreement among the shareholders. This arrangement ensures continued shareholder involvement in significant strategic and financial decisions following the discontinuation of the Supervisory Board.
The changes do not affect the company’s day-to-day business activities, existing contractual obligations or strategic development objectives.
The changes took effect on 2 November 2026, following the adoption of the necessary shareholder resolutions and registration of the relevant amendments with the Register of Enterprises of the Republic of Latvia.
Gints Vanags
SIA Arsenal Industrial, CEO
Mobile: + 371 26 303 848
E-mail: gints.vanags@arsenalrent.com
www.arsenalnoma.lv