Finnish corporate law for beginners

What should you know about corporate law in Finland? You might have seen company names ending with the word "ltd". LTD means "limited liability company". A limited liability company is a good word to know. It means OSAKEYHTIÖ

What to know about governance? A chief executive officer (TOIMITUSJOHTAJA) takes care of running the daily business. The board of directors (HALLITUS) have a chairman (PUHEENJOHTAJA). The board takes care of the strategy and long-term planning

Who are the owners of limited liability company or joint-stock company (OSAKEYHTIÖ) ? There are shareholders (OSAKKEENOMISTAJAT). The shareholders take part into annual general meeting (AGM, YHTIÖKOKOUS).

Annual general meeting handles the matters that fall under its authority according to the Finnish Companies Act (OSAKEYHTIÖLAKI) as well as any matters proposed to a General Meeting. Extraordinary General Meetings (YLIMÄÄRÄINEN YHTIÖKOKOUS) are convened to handle specific matters proposed to a General Meeting.

The corporation has a document called articles of association (YHTIÖJÄRJESTYS). It can be long or it can be short. It is like a "rule package".

There are some things that the leaders of the company aren't able to do alone under Finnish Companies Act without the decision-making of General Meeting. This is to protect shareholders' investments and expectations. Such issues that are subordinated to general meetings to have the final word:

• increase or decrease in share capital (osakepääoman nosto tai alentaminen)
• distribution of profits (voittovarojen jako)

In case all the shareholders are unanimous (YKSIMIELINEN), they can decide something that should be dealt in general meeting, without the need to have an extraordinary general meeting.

Public corporations also must publish stock exchange releases (PÖRSSITIEDOTE) regularly

Ways to organise your business in Finland are:

-co-operative society (OSUUSKUNTA)

-limited partnership (KOMMANDIITTIYHTIÖ)

-general partnership (AVOIN YHTIÖ)

-self-employed individual (YKSITYINEN ELINKEINONHARJOITTAJA).

-corporation (OSAKEYHTIÖ)