Monday, December 12, 2005

New Swedish Companies Act – Important changes

As mentioned in an earlier post at Swedish Law Blog the new Swedish Companies Act (link to Swedish version only) will enter into force on January 1, 2006. The act has been rewritten and consists of 31 chapters compared to the 19 chapters of the old act. Major changes have been made concerning i. a. shares, issuance of new shares, the statutory reserves, lending to shareholders, the new concept “value transfer”, changes of the board of directors and the contents of the Articles of Association (bolagsordning).

In this and a couple of following blog posts I will cover the most important changes relevant to an established Swedish limited company without the aim of giving a thorough and detailed report on all the changes.

• A share in a Swedish limited company will no longer have a par value. It will instead only represent a certain part of the company. This part of the company is calculated by dividing the total share capital with the number of shares.

• New share certificates shall include the social security number (person- or organisationsnummer) of the shareholder.

to be continued

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