Dissolution of a limited liability company and its taxation

When an entrepreneur quits his business voluntarily, he usually seeks to sell his company. Often, however, the buyer wants to buy only the business, leaving the entrepreneur with an old limited liability company, where the largest asset is the transaction price obtained from the disposal of the business. Sometimes the business is also identified with […]

Demerger of the Limited Liability Company in Finland

In this article demerger refers to the demerger regulated in Chapter 17 of the Limited Liability Companies Act (Companies Act, 624/2006). A demerger is a corporate restructuring in which a business is divided into different components. A demerger allows e.g., a large company, such as a conglomerate, to divide its various business units to create […]

Right of Squeeze-out under the Finnish Companies Act

According to the Finnish Companies Act, a shareholder with more than nine-tenths (9/10) of all shares and votes in the company (the redeemer) has the right to redeem the shares of the other shareholders at the fair price (right of squeeze-out). The minority shareholder shall have the corresponding right to demand that the shareholder’s shares […]

Termination of an employment agreement under the finnish law

The Finnish employment law is based on the concept of contract employment, not at-will employment like, for example, in the United States. Henceforth, the parties of the employment contract cannot change the terms of the contract unilaterally, nor can the employer terminate the employment contract without valid grounds. The termination and cancellation of the employment […]

Managing Director´s Agreement in the Finnish Legal System

Managing Directors of limited liability companies are not considered to be employees and thus do not enjoy protection under the Finnish labour law. The Board of Directors of a limited liability company is entitled to dismiss the Managing Director of the Company solely based on lack of confidence and without any obligation to pay compensation […]

Revised Arbitration Rules of the Finland Chamber of Commerce as of 1 January 2020

A summary of revisions FAI rules. This is how it should work in theory. I filed in January a Request for Expidited Arbitration under new rules. I may write on how they work in practice and councels experience of these later in the Summer.  The Finland Arbitration Institute, FAI Arbitration Rules and the Rules for Expedited Arbitration were fully […]