Minority shareholders in limited companies and minority members in economic associations, such as housing associations, will now receive stronger protection. From 1 January 2021, the Swedish Companies Registration Office will be able to appoint a special auditor in a limited company or an economic association without the matter needing to be decided at a general meeting of shareholders or a members' meeting. This is clear after the Riksdag approved a proposal from the Government.
The idea behind the new law is to make it easier for minorities to obtain an independent review of operations, something that could previously be opposed by boards. However, it requires at least one-tenth of the shareholders or members to support the application. And to reduce the risk of the new possibility being misused, the applicant or applicants for a special review may be required to reimburse the company/association for the costs of the review if the special review turns out to have been clearly unnecessary.
Parliament has also approved amendments concerning how parties should have a greater opportunity to agree on the process when minority share buy-outs are to be tried in arbitration proceedings, meaning when a dispute is settled out of court.
Charlotta Marténg
Read more The consideration A fit-for-purpose minority shareholder protection in limited companies and economic associations
https://data.riksdagen.se/fil/12653FAC-14A1-406B-AB32-FA6BC843C454
This article is published in cooperation with the magazine Resultat
