A proposed Amendment to the Danish Companies Act has been passed

Date 16 maj. 2013
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16 May 2013, the Danish Parliament passed an amendment to the Danish Companies Act. In the main, the changes comply with the bill introduced 27 February 2013 which builds on the draft put forward by the Danish Business Authority 19 December 2012.


The passed amendment contains both material changes and technical adjustments.

 

A brief outline of the most significant changes is given below. For a more thorough review of the changes, please see our newsletter dated 9 January 2013, ”Update of the Danish Companies Act”.

  • The minimum capital requirement for private limited companies is reduced from DKK 80,000 to DKK 50,000
  • In future, it will not be possible to establish limited liability companies (in Danish, S.M.B.A companies)
  • It will be possible to establish entrepreneurial companies with a share capital of as little as DKK 1
  • It will be possible to carry out partial payments of premiums in private limited companies
  • In future, it will be possible to omit opening balance sheets at contributions of a controlling holding of shares
  • Possibility of a quicker completion of compulsory redemptions
  • More flexible rules for proxies in connection with general meetings

Our Assessment

The passed amendment contains a number of substantial changes which, among other things, build on experiences made in other European countries. The amending act will be put into effect by an executive order, which is expected to take place before the 2013 summer vacation.


 

If you have any questions or require additional information on the bill, please contact Partner Christian Bredtoft Guldmann (cbg@mwblaw.dk) or Senior Associate Henning Hedegaard Thomsen (hht@mwblaw.dk).

 

The above does not constitute legal counselling and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of a reader’s use of the above as a basis of decisions or considerations.