04.02.2012 13:03
Ownership Steering Act
The statute regulating the administration of state majority-owned companies is the Ownership Steering Act (1368/2007). The Act applies to decision making concerning State shareholdings and State ownership steering in state-majority owned companies and associated companies.
A state majority-owned company refers to a limited company in which the State has a majority of the votes carried by all of the company’s shares. A state associated company refers to a limited company in which the State has at least ten per cent and at most fifty per cent of the votes carried by all of the company’s shares.
The Act defines the competences between the Government and Parliament when the State either acquires or relinquishes authority in a state-owned company. In addition, the new Act will clarify competences between the Government plenary session and the ministry responsible for ownership steering. The Act also specifies provisions concerning the sale of shares and reorganisation of business activities.
Parliament decides in which companies the State may relinquish its sole ownership (100% of votes in the company) or the control of the company (50.1% of votes). Parliament may also decide on the acquisition of control to the State if the company in question is of substantial importance. The Government decides on State ownership, in other words on the acquisition and sale of shares. The ministry responsible for ownership steering makes decisions on most issues concerning ownership steering and use of shareholder authority.
Special legislation
In addition to the Act on Exercising the State's Control of Shareholders in Certain Limited Companies Engaged in Business Activity, some state-owned companies are regulated by special legislation governing their own field (Acts on a State-owned Special Financing Company, legislation on alcohol beverages, etc.). The activities of all limited companies are based on the Companies Act and publicly listed companies are also bound by both the Securities Markets Act and the guidelines of financial inspection and the Helsinki Stock Exchange Ltd.
Government decisions
In addition to the Act on Exercising the State's Control of Shareholders in Certain Limited Companies Engaged in Business Activity, the administration of the State's corporate ownership is regulated by the Government resolution on the State's Corporate Ownership Policies and other Government decisions. The Cabinet Committee on Economic Policy may also issue statements on matters concerning ownership policy and ownership steering.
The Act on State shareholdings and ownership steering (pdf)
