Thursday, December 15, 2005

New Swedish Companies Act – Important changes

Issues of Shares
  • The rules on publishing of resolutions regarding issues of shares, options and convertibles have been deleted.

  • Earlier the amount to be paid for a new share must not be lower than the par value of the share. As shares will no longer have a par value, the subscription amount will be compared with the part of the company which the share will represent.

  • New rules in respect of options and convertibles will give more flexible possibilities for increases of capital.

Restricted and Non-Restricted Shareholder’s Equity
  • Amounts allocated to the share premium reserve from January 1, 2006 will be considered as non-restricted shareholder’s equity.

  • The rules on mandatory allocation of funds to the statutory reserves have been removed.

  • Amounts in the share premium reserve as of January 1, 2006 shall be transferred to

To be continued

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