- Professional News
- 04 June 2014
New Danish Commercial Foundations Act
The Danish Parliament has passed a new commercial foundations act. The result is modernised commercial foundations legislation as well as a single entry point at the Danish Business Authority.
On 3 June 2014, the Danish Parliament passed a new Commercial Foundations Act. The Act modernises the legislation governing commercial foundations and introduces clearer rules on, among other things, the responsibilities undertaken by board members, financial statements meetings, the appointment of auditors as well as mergers.
Moreover, the new act establishes complaint handling procedures under the Danish Company Appeals Board.
Centralised foundations regulator
As a result of the new act, supervision of Danish commercial foundations will, as of 1 December 2014, become centralised with the Danish Business Authority instead of the Danish Department of Civil Affairs.
Single entry point
As a result, the commercial foundations will get a single entry point at the supervisory authority handling tasks pertaining to supervision and registration.
Commercial foundations may, for example, contact the Danish Business Authority about legal issues pertaining to funds and foundations, financial reporting as well as company law in respect of subsidiaries.
The Department of Civil Affairs will continue to have administrative authority in respect of variation of trust granting permission to change the object, the distribution object and to dissolve the foundation.
The Danish Minister of Business and Growth will determine when the amended Act is to come into effect.