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November-December 2008
Estonia, Latvia, Lithuania, Finland, Sweden |
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RoschierRaidla News
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Inside this Issue:
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Estonia |
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Latvia |
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Lithuania |
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Estonia
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Guidelines of the Financial Supervision
Authority |
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Based on the Financial Supervision Authority Act and proceeding from
international standards the Financial Supervision Authority issues
advisory guidelines to explain legislation regulating the activities
of the financial sector and to provide guidance to subjects of
financial supervision. In 2008 the management board of the Financial
Supervision Authority has issued the following advisory guidelines:
1) “Technical Conditions for Notifying the Financial Supervision
Authority of Securities Transactions”, which entered into force on 3
November 2008;
2) “Requirements for Pre-contractual Information Concerning the
Terms and Conditions of Investment Deposits”, which entered into
force on 8 September 2008;
3) “Requirements for Pre-contractual Information Concerning Housing
Loans”, which shall enter into force on 15 January 2009;
4) “Additional Measures for Preventing Money Laundering and
Terrorist Financing in Credit and Financial Institutions”, which
shall enter into force on 1 April 2009.
Further guidelines currently in the pipeline in the Financial
Supervision Authority shall provide recommendations on the provision
of investment services. The advisory guidelines are posted on the
website of the Supervision Authority. Failure to abide by the
advisory guidelines is deemed to be a show of disrespect towards
generally accepted practices in the financial sector and towards
competitors, and the person doing so risks facing restrictions
imposed by the Financial Supervision Authority.
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The Supreme Court Ruling on Managing a
Private Limited Company |
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The Supreme Court, in its 8 October 2008 decision in civil matter No
3-2-1-65-08 (the action of Mereranna against OÜ REHVIEXPRESS), deals
with certain issues that arise in managing a private limited
company. The Supreme Court stressed that in order to convene a
shareholders’ meeting the management board must send invitations to
all shareholders to the addresses stated in the list of
shareholders. However, in the event the private limited company is
aware or should be aware that the address of a shareholder differs
from that in the list of shareholders, the invitation must be sent
to that other address as well. The Supreme Court also found, though,
that the articles of association of the company may prescribe
stricter requirements than the above-mentioned minimum requirements
that are set forth in the law.
In the same ruling the Supreme Court also analyzed problems
concerning the transfer of a share, notification thereof and
subsequent changes in the list of shareholders. According to the
Supreme Court, notification to the private limited company about the
transfer of the share must be given by the former owner of the
share, i.e. the person whom the private limited company had
recognized as a shareholder until the transfer. As a rule, it is the
person entered in the list of shareholders.
The Supreme Court also commented upon the share held by spouses:
under the Family Law Act the share is by default deemed the joint
property of spouses and therefore the private limited company must
take into account that the declaration of intention made by only one
spouse is not sufficient in voting, and that the vote shall be valid
only, if both spouses have declared their intention. The Supreme
Court found that entry into the list of shareholders or notification
of the company of the share being jointly held had no bearing in
this respect. If no notice has been given to the private limited
company about joint ownership of the share, the company may deem as
the owner only the person that had been recognized as the sole
owner. Once the private limited company has been duly notified of
joint ownership of the share, the shareholders may exercise their
rights only jointly.
Within the framework of the same ruling the Supreme Court also dealt
with the authorization of the management board members of a private
limited company. The Supreme Court repeated its earlier position
that membership in a management board is always given for a specific
term and expires as the term ends, since the law does not provide
for automatic renewal of the term. Consequently a person can
continue to act as a member of the management board only in case the
private limited company extends his or her term in office. This is
subject to the relevant decision of the shareholders of the private
limited company, extending the term in office, and the consent of
the person involved is required as well. Continued action as a
management board member alone is not sufficient to deem his or her
term in office extended. However, the Supreme Court did not rule out
the possibility of deeming the management board member’s term in
office extended on the basis of specific circumstances (e.g. if the
annual report has been approved by decision of the management
board).
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Other Recent Legislative Developments |
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New Gambling Act
On 15 October 2008 the Estonian Parliament (Riigikogu)
adopted the Gambling Act. The act establishes rules for the
organisation of gambling, state supervision over gambling and
liability for violations of the act. The objective of the act is to
modernize the requirements for organizing gambling and to eliminate
market distortions. As a novel element lotteries are included in the
act as a form of gambling. Prior to the adoption of the new act two
separate laws used to regulate the field: the Lotteries Act and the
Gambling Act. The new act also establishes rules for other modern
games that had been outside the scope of any laws or were
insufficiently regulated. Games based on "mental skills" and trade
lotteries have also been included. More specific provisions apply to
the organisation of gambling by using means of communication (the
Internet, digital television, telephone and mobile telephone).
Stricter requirements are imposed on organizers of gambling,
including the considerable increase of their minimum share capital
from two million Estonian kroons to up to one million euros.
Organizers of gambling acting on the basis of activity licences
granted prior to the entry into force of the new act must bring
their share capital in line with the requirements by 1 January 2015
at the latest. The act shall enter into force on 1 January 2009.
Excise Duty Acts Specified
On 6 November 2008 the Riigikogu passed the Act Amending the
Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and
Associated Acts. The aim of the amendments is to transpose the
provisions of various EU directives. The changes include new limits
on importing goods exempt from excise duty. As another change oil
shale used for heat generation shall be subject to excise duty from
2011. Further measures to improve tax collection are introduced by
imposing additional requirements on payers of excise duty (e.g. the
obligation to submit to the tax administrator their working
procedures and descriptions of measurements conducted upon storage).
On the other hand, the administrative burden placed on undertakings
was reduced. The tax administrator was given the right to impose
fines to ensure compliance with the Excise Duty Act. Except as set
forth expressly in various provisions, the act shall enter into
force on 1 January 2009.
Road Transport Act Amended
On 16 October 2008 the Riigikogu passed the Act Amending the
Road Transport Act, the State Fees Act and the Punishment Register
Act. The purpose of the changes is to bring the Road Transport Act
in line with amendments in EU legislation regulating the
organisation of road transport and to specify the provisions of the
act in more detail. Therefore the main amendments pertain to the
list of documents required for road transport for hire or reward and
their terms of validity. The European Economic Community licence for
road transport is to become the most important document. The
conditions and procedure for applying for a licence for road
transport and a licence card, as well as the requirements for
persons issued the licence are laid out in more detail. Based on the
new rules and requirements application for permits should become
easier and less bureaucratic. The amendments shall enter into force
on 1 January 2009.
Funded Pensions and Investments Subject to New Rules
On 23 October 2008 the Riigikogu adopted the Act Amending the
Funded Pensions Act and Associated Acts. The objective of the
amendments is to do away with the bottlenecks that had emerged in
the course of the funding phase and to improve the payments phase of
the mandatory funded pension system. As regards the former, the
structure of the pension funds fees is changed (e.g. the management
company of a mandatory funded pension fund is prohibited from
charging an issue fee, and the management fees are cut), the rules
for exchanging pension fund units are modified and investment
restrictions are reduced. As a result unit owners have better
possibilities to react faster to changes in the terms and conditions
regulating the fund or to changes in investment results. Further
changes pertain to inheriting pension fund units and the use of
inherited units, the terms and conditions for making payments from a
mandatory funded pension fund, payment schemes, the terms and
conditions for pension contracts and funded pension, as well as the
requirements to insurers and pension fund management companies
entitled to offer pension contracts. The amendments are
far-reaching, including amendments in the Income Tax Act, Insurance
Activities Act, Investment Funds Act, Guarantee Fund Act and other
associated acts. As a result of the changes EUR 50 000 of each
saver’s deposits in each credit institution are to be guaranteed and
compensated. In the case of investments the upper limit to be
guaranteed and compensated is EUR 20 000. Except as set forth
expressly in various provisions, the Act entered into force on 23
November 2008.
Earth’s Crust Act Supplemented
On 23 October 2008 the Riigikogu passed the Act Amending the
Earth’s Crust Act and the Sustainable Development Act. The new
annual extraction limit for oil shale is 20 million tons. The
amendments also set forth the bases for transferring the annual
right to extract oil shale or a part thereof. Conditions for
granting a new mining claim for the extraction of oil shale are also
introduced. The amendments entered into force on 23 November 2008.
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| For further information please contact
Raino Paron
(CV),
Partner at Raidla Lejins &
Norcous in Tallinn. |
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Latvia
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Competition Law Amended |
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On 14 November 2008, the Latvian
Parliament (Saeima) passed
the Law on amendments to the
Competition Law, changing the
concentration notification
requirements, appealability of the
decisions of the Latvian Competition
Council and enforcement of rules of
unfair competition. The amendments
will enter in force on 1 January
2009.
By the new amendments to the
Competition Law, matters concerning
rules of unfair competition and
compliance with the Latvian
Advertising Law will be removed from
the competence of the Competition
Council and will become subject to
self-enforcement by the market
participants only. Disputes
concerning breach of unfair
competition restrictions will now be
in the competence of the general
courts only. Under the present
regime each market participant had
an option to initiate an
administrative proceeding with the
Competition Council or to litigate
the matter by itself. The
Competition Council route was the
preferred alternative as it allowed
to shift the burden of proof and
evidence gathering to the
Competition Council and to litigate
these matters under the
administrative procedure rules
rather than in adversary litigation
procedure.
As the Competition Council is acting
as an administrative entity, all of
its decisions were appealable under
the administrative procedure rules
in 3 court instances and, if
appealed, they did not enter in
force until finally resolved. To
make the enforceability of the
Competition Law more efficient, as
of 1 January 2009 the Competition
Council decisions would be subject
to review in 2 court instances only.
The Competition Council decisions
will be appealable to administrative
court both in respect of matters of
law and fact. The decisions of the
administrative court will not be
appealable but they may be reviewed
by the higher courts under the
cassation procedure in respect of
matters of law.
The amendments will also introduce
an important novelty in the Latvian
concentration notification
requirements that will allow to
avoid notification of small-scale
acquisitions. Thus, as of 1 January
2009 the market participants will be
exempt from the notification
obligation if the concentration has
only two participants and the
turnover of one of them in the
preceding financial year did not
exceed LVL 1,500,000 (approximately
EUR 2,134,300).
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Value Added Tax Rate and Scope of VAT Taxable
Transactions Changed |
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On 11 December 2008, the Saeima passed the Law on amendments to the Law
on Value Added Tax, changing the applicable Value Added Tax rate and
substantially narrowing down the scope of the transactions subject to the
reduced VAT rate. The law still needs to be promulgated by the President of
Latvia. It is expected that the law will enter in force as of 1 January 2009.
The
Law on the amendments to the value added tax will increase the generally
applicable VAT rate from 18% to 21%. The reduced VAT rate has been increased
from 5% to 10%. The changes in the tax rate will apply from 1 January 2009. The
sale of goods and provision of services which has taken place by 31 December
2008 will be subject to the existing VAT rate even if the VAT invoices for these
transactions are issued in 2009.
The Law on the amendments to the value added tax will significantly narrow down
the range of the VAT-taxable transactions that were earlier benefitting from the
reduced VAT rate. As of 1 January 2009 these transactions will be subject to VAT
at the full rate of 21%, thus experiencing a VAT cost increase by 16%. These
transactions include, among others, lodging services (hotels, beds & breakfasts,
camping sites, etc), supplies of books, public utility services, including water
supplies, sewage services, garbage removal, tickets to sporting events,
hairdresser’s services, funeral services.
There is no specific transitional period provided for the application of full
VAT rate to the services that earlier benefited from the reduced VAT rates. This
has already caused a number of legal uncertainties, in particular, in respect of
passing over the increased VAT cost to the end consumer. As a rule, increase in
the public utility service fees need to be notified to the end-consumer at least
3 months in advance. This will not be possible as the service provider will be
subject to new VAT rates in less than 3 weeks after their adoption. Similarly,
the lodging service providers would be faced with an uncertain legal alternative
in respect of payment of the additional VAT on the bookings that have been made
prior to the adoption of the law for the periods after 1 January 2009 and which
will not be paid by the customer, agent or broker by 31 December 2008.
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Amendments to the Law on Individual’s Income
Tax |
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In November and December 2008, the Saeima has twice amended the Law on
Individual’s Income Tax – on 14 November 2008 and on 11 December 2008. The
amendments of 11 December 2008 still need to be promulgated by the President of
Latvia. These amendments will reduce the individual’s income tax rate from 25%
to 23%. The reduced income tax rate is expected to be applicable as of the
2009th tax year.
The amendments of 14 November 2008
will, inter alias, change the
taxation of non-resident
individual’s dividend income, and
will party restore the tax emption
of the capital gains income obtained
by indviduals from sale of real
estate in the form as it was prior
to introduction of anti-inflation
measures in May 2007.
Thus, as of 1 January 2009 dividends
paid by Latvian residents to
non-resident individuals will be
subject to withholding tax at the
rate of 10% unless the dividends are
paid to residents of other EU member
states of residents of EEA member
states. The dividends paid to
residents of other EU member states
and residents of EEA member states
would only be taxed if the payor is
exempt from corporate income tax in
Latvia or has benefited from a tax
reduction under any other tax law of
Latvia (except the tax reductions
available under the Corporate Income
Tax law) either in the tax year in
which the dividend has been declared
or in the previous tax year. These
dividends would be subject to 10%
withholding tax except if lower
withholding tax is applicable
pursuant to the relevant double
taxation treaty.
As of 1 January 2009 the income
obtained by individuals from sale of
their own real estate will not be
taxable unless the real estate has
been owned by the seller less than
12 months. This provision will
replace the current rule under which
the income obtained from the sale of
real estate is tax exempt only if
the real estate was owned by the
seller for more than 60 months and
the seller had its declared place of
residence in the real estate for at
least 12 months prior to sale.
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Amendments to the Law on Corporate Income Tax |
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On 14 November 2008, the Saeima amended to the Law on Corporate Income
Tax. Most of the amendments (with certain exceptions) will come into force on 1
January 2009 and will be applicable starting with the 2009 tax year. The
amendments will simplify payments of dividends, interest and royalties to
residents of the EU and EEA member states, extend the loss-carry-forward period
and provide an incentive for establishing retained earnings. In addition, new
provisions have been introduced in respect of taxation of income obtained in
replacement of fixed assets, tax deductibility of expenses incurred in creation
of jobs for persons with special needs. The corporate entities will also be to
benefit from retained earnings.
According to the new amendments payments of dividend, interest or royalties to
companies which are tax residents of another EU member stated or EEA member
state will not be subject to withholding tax if the beneficiary of the payment
has provided the payer with a certificate issued by the tax authorities of its
member state and confirming that the recipient of the payment is tax resident
and is subject to taxation in that country. These certificates will be valid and
accepted by the Latvian tax authorities for a period of 5 years from their date
of issue.
Starting with the 2010th tax year, the loss-carry-forward period for the
corporate income tax purposes will be extended from the present 5 years to 8
years. The loss which the company was entitled to tax deduct in its 2007th tax
year but could not deduct due to insufficiency of income, may now be deducted
from the taxable income of 2008th and 2009th tax years.
Starting with the 2009th tax year the companies will be allowed to reduce their
taxable income by an amount equal to the sum of its retained earnings
accumulated starting with the 2009th tax year multiplied by the average weighted
interest rate on loans to domestic non-financial enterprises. The average
weighted interest rate on loans to domestic non-financial enterprises for each
tax period will be determined by the Bank of Latvia and published on its web
page.
The expenses incurred in creation of specialized new working places for persons
with physical or mental capability limitations (with a recognized invalidity)
would be deductable from the taxable income provided that the working place is
maintained for at least 2 years. The taxable income may also be decreased by an
amount
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| For further information please contact
Dace Silava-Tomsone
(CV),
Partner at Raidla Lejins
& Norcous in Riga. |
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Lithuania
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Amendment of the Law on Companies of the
Republic of Lithuania |
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On 11 November 2008, the Lithuanian
Parliament (Seimas) legislated a
Law on Amendment of the Law on Companies
of the Republic of Lithuania (the
“Law”). Major amendments are related to
the adoption of the decisions of the
Management Board (the “Board”) and
procedure of the reorganization of the
companies.
The Law modifies the model of the
adoption of the Board decisions. The
former provision that “the decision of
the Board shall be adopted if more votes
for it are received than the votes
against it if the Articles of
Association of the company do not
require a larger number of votes” is
replaced with a new rule which
stipulates that “the decision of the
Board shall be adopted if more than a
half of all elected members of the Board
vote for it if the Articles of
Association of the company do not
require a larger number of votes”. This
amendment comes into force from 1 July
2009 as it determines amendments and
registration of the Articles of
Association of the companies, amendments
of the Regulations of the Boards of the
companies.
Other amendments are related to the
implementation of the Directive
2007/63/EC of the European Parliament
and of the Council of 13 November 2007
amending Council Directives 78/855/EEC
and 82/891/EEC as regards the
requirement of an independent expert’s
report on the occasion of merger or
division of public limited liability
companies.
In case all shareholders of each of the
companies being reorganized and the
companies involved in the reorganization
agree: (i) the terms of reorganization
do not need to be evaluated by the firm
of auditors and the firm of auditors
does not need to draw up the report
evaluating the terms of reorganization;
(ii) on the occasion of division of the
company the Management Board does not
need to draw up a detailed written
report on the prospective
reorganization; (iii) on the occasion of
division of the company the interim
accounts do need to be drawn up even if
the terms of reorganization were drawn
up 6 months after the end of the
financial year of at least one company
involved in the reorganization.
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Law on Implementation of European Union
and International Legal Acts Regulating Civil Procedure |
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On 13 November 2008, the
Seimas legislated a Law on
Implementation of European
Union and International
Legal Acts Regulating Civil
Procedure (the “Law”). This
Law implements these
European Union regulations:
(i) Council Regulation (EC)
No 44/2001 of 22 December
2000 on jurisdiction and the
recognition and enforcement
of judgments in civil and
commercial matters; (ii)
Council Regulation (EC) No
1206/2001 of 28 May 2001 on
cooperation between the
courts of the Member States
in the taking of evidence in
civil or commercial matters;
(iii) Council Regulation
(EC) No 2201/2003 of 27
November 2003 concerning
jurisdiction and the
recognition and enforcement
of judgments in matrimonial
matters and the matters of
parental responsibility,
repealing Regulation (EC) No
1347/2000; (iv) Regulation
(EC) No 805/2004 of the
European Parliament and of
the Council of 21 April 2004
creating a European
Enforcement Order for
uncontested claims; (v)
Regulation (EC) No 1896/2006
of the European Parliament
and of the Council of 12
December 2006 creating a
European Order for Payment
Procedure; (vi) Regulation
(EC) No 861/2007 of the
European Parliament and of
the Council of 11 July 2007
establishing a European
Small Claims Procedure;
(vii) Regulation (EC) No
1393/2007 of the European
Parliament and of the
Council of 13 November 2007
on the service in the Member
States of judicial and
extrajudicial documents in
civil or commercial matters
(service of documents), and
repealing Council Regulation
(EC) No 1348/2000. In
connection with the adoption
of the Law, a Civil
Procedure Code of the
Republic of Lithuania was
amended: certain provisions
implementing the
aforementioned regulations
were recognized void.
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| For
further information please contact
Irmantas Norkus, (CV),
Managing Partner at Raidla Lejins & Norcous in Vilnius. |
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Finland
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The
Revised Finnish Corporate
Governance Code Increases
Transparency |
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The revised Finnish Corporate Governance Code (the “Code”) for Finnish listed
companies was issued on 20 October 2008 replacing the Corporate Governance
Recommendation from 2003. The amendments to the Code are quite moderate and
consist mainly of the increased duty of disclosure and the composition of the
board of directors specifically in respect of gender and expertise in accounting
as well as the obligation to issue a separate corporate governance statement.
This article will briefly present the revised Code as well as some of the most
significant amendments to it.
The
aim of the Code is that Finnish listed companies apply corporate governance
practices that are of a high international standard. The Code is through its
recommendations complementing the legislation in respect of the role and duties
of the board of directors and the management of the company and their relations
to the shareholders. The Code, like the 2003 Recommendation, applies the
so-called Comply or Explain principle meaning that the company shall comply with
the recommendations of the Code and an explanation shall be given for any
deviations from these recommendations.
As regards the duty of disclosure prior to the general meeting of shareholders,
the revised Code has specified the content of the information to be made
available to shareholders prior to the general meeting including, inter alia,
information on the total shares and voting rights as well as the proposals for
resolutions all of which shall be made available on the company’s website 21
days before the general meeting. This information shall be published together
with the notice of the general meeting of shareholders.
In respect of the composition of the board of directors, the Code requires that
both genders shall be represented on the board of directors of a Finnish listed
company. The company shall also report the biographical details of the
candidates for the board of directors on its website. There is also a
possibility for the Company to present information on the independence of the
candidates on the company’s website if such information can be presented in an
appropriate manner. As the majority of the board members shall be independent,
the independence criteria have also been further clarified due to practical
needs and on the basis of the Commission recommendation on the role of
independent directors. Additionally, there have also been some amendments to the
duties and composition of the board committees.
Further, an increased duty of disclosure has been included in the Code in
relation to the financial benefits of the managing director and the board
members. The financial benefits included in the service contract of the managing
director as well as in the employment and service contract of the board members
shall be specified in writing. Also the remuneration policies of the managing
director and other executives shall be specified. This information will allow
shareholders to evaluate the amount of remuneration in relation to the
achievements of the company’s goals. Other significant amendments to the Code
include the obligation to issue a separate corporate governance statement
including, among other things, a description of the main features of the
internal control and risk management systems pertaining to the financial
reporting process. The company is required to present its Corporate Governance
Statement as a separate report together with the financial statements and the
report by the board of directors. The board of directors shall also provide
information on major risks and uncertainties that it is aware of and the
principles around which the risk management is organized.
The revised Code will enter into force on 1 January 2009, however, it may be
applied immediately. Finally, it is noteworthy that some of the revised
recommendations requiring more compliance time will take effect at a later date,
such as the gender representation in the board of directors, which will take
effect on 1 January 2010. The Corporate Governance Statement shall be issued for
the first time for a financial period commencing on 1 September 2008 or later.
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For further information please contact
Manne Airaksinen
(CV),
Partner at Roschier in Helsinki. |
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Sweden
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New
Discrimination Act
in Sweden |
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As from 1
January 2009 a
new
discrimination
act (the “Act”)
will come into
force in Sweden.
This Act will
replace seven
anti-discrimination
acts and is
aimed to provide
a more
comprehensive
and coordinated
protection
against
discrimination.
The Act provides
for age and
transgender
identity as new
grounds of
discrimination.
Further,
discrimination
compensation is
introduced to
discourage
discrimination.
The Equality
Ombudsman shall
supervise
compliance with
the new Act.
Current
anti-discrimination
legislation
contains a
scattered mix of
different laws
and statutes
that have been
developed over
the years, and
is difficult to
overview. The
Act, which is
mandatory, will
replace seven of
these
anti-discrimination
acts and will
serve as a new
coordinated
anti-discrimination
legislation in
Sweden. However,
anti-discrimination
regulations in
relation to
part-time
employees and
temporary
employees with
temporary
employment will
remain in
separate
legislation.
The purpose of
the Act is to
prevent
discrimination
and to promote
equal rights and
opportunities
regardless of
sex, transgender
identity,
ethnicity,
religion,
disability,
sexual
orientation or
age. Thus, two
new grounds of
discrimination,
transgender
identity and
age, are
introduced in
the Act. In
addition to
prohibitions
against
discrimination
and reprisals,
the Act contains
provisions on
inter alia
active measures,
supervision,
invalidity of
discriminatory
provisions in
individual and
collective
agreements,
entitlement to
compensation and
legal
proceedings.
The Act will
apply to, inter
alia, employers,
education
providers,
providers of
goods, services
and housing to
the public,
providers within
health and
medical care, as
well as to
certain social
security
provided by the
state. Further,
the Act
stipulates that
the prohibitions
against
discrimination
shall be
extended to
apply in several
new areas of
society that
have not been
covered
previously, such
as employment
within the
public sector,
national
military service
and civilian
service and all
parts of the
educational
system. The Act
is also extended
to provide
protection for
trainees,
temporary
employees and
agency workers.
The new
prohibition
against
discrimination
because of age
is applicable
only in relation to
working life and
education.
Rules on
discrimination
compensation
will replace
current rules on
punitive damages
for violation of
anti-discrimination
provisions in
the Act. Any
individual or
legal entity
that violates
the prohibitions
against
discrimination
and reprisals,
or fails to
fulfill the
obligations to
investigate and
take measures
against
harassment, may
be ordered to
pay compensation
to the
individual who
has been
offended by the
breach. An
employer may
also be liable
to compensate
for the economic
loss that arises
for the employee
(loss in
connection with
employment or
promotion is
excluded). The
Swedish
government has
emphasized that
the
discrimination
compensation
shall have a
deterrent
effect, and that
there may be
room for
increased
compensation
levels compared
to today’s
levels. Further,
any
discriminatory
provisions in
individual
contracts or in
collective
agreements may
be modified or
declared invalid
if challenged in
court by the
discriminated
individual.
The new agency,
the Equality
Ombudsman, will
be responsible
for supervision
of the Act, and
it will replace
the current
anti-discrimination
ombudsmen that
supervise
anti-discrimination
on different
grounds.
Further, the
Equality
Ombudsman, or
certain
non-profit
organizations
(except for
trade unions),
may represent
individuals and
bring actions
before court.
Another
innovation
presented in the
Act is that in
legal
proceedings
relating to
other areas in
society than
working life,
each party may
be ordered to
bear its own
litigation
costs, provided
that the losing
party had
reasonable
grounds for
bringing action
before court.
However, this
does not apply
in cases where
the individual
is represented
by the Equality
Ombudsman. The
intention with
this regulation
is to encourage
individuals to
bring actions
before court,
since the
financial risks
are limited.
Finally, it can
be noted that
the obligation
for employers to
establish a
gender equality
plan has been
modified.
According to the
new rules an
employer with 25
employees or
more (instead of
10 employees or
more) shall
establish an
equality plan
every third year
(instead of each
year).
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| For further information please contact
Axel Calissendorff
(CV),
Partner at Roschier
in Stockholm. |
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| This Newsletter is a
periodic publication of RoschierRaidla and
should not be construed as legal advice or legal opinion on any specific
facts or circumstances. We have used reasonable efforts in collecting,
preparing and providing the information in this newsletter, but we do
not warrant or guarantee the accuracy, completeness, adequacy or
currency of the information contained herein. The contents are for
general informational purposes only, and you are urged to consult a
lawyer concerning your situation and any specific legal questions you
might have. |
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