Financial Business Act.pdf

While this translation was carried out by a professional translation agency, the text
is to be regarded as an unofficial translation based on the latest official Consolidated
Act no. 286 of 4 April 2006. Only the Danish document has legal validity.
October 2006, GlobalDenmark Translations
provisions of subsection (1) shall apply correspondingly to investment management
companies.
(3) Persons employed by the board of directors of an association may not, without the consent
of the board of directors, own or operate an independent enterprise, or in the capacity as a
member of the board of directors, an employee, or in any other way, participate in the
management or operation of another enterprise than said association, cf. however subsection
(6) and section 16.
(4) Other employees in an association for whom there is a significant risk of conflicts between
the interests of the employee and those of the association may not, without the consent of the
board of management, own or operate an independent enterprise, or in the capacity of
member of the board of directors, employee, or in any other way, participate in the
management or operation of a enterprise other than said association. The board of directors
shall be informed of any authorisation granted by the board of management.
(5) The board of directors shall decide which employees have a significant risk of conflicts
between the interests of the employee and those of the association, and who shall
consequently obtain the authorisation of the board of management, cf. subsection (4), to own
or operate an independent enterprise, or in the capacity of member of the board of directors,
employee, or in any other way, participate in the management or operation of another
enterprise than the association.”
6. In section 15, the following new subsections shall be inserted after (6):
”(7) All authorisations granted by the board of directors in pursuance of subsection (3) shall
appear in the minute book of the board of directors.
(8) The association shall at least annually publish information on the duties and positions
approved by the board of directors under subsection (3). Furthermore, the external auditors
shall make a declaration in the audit book comments on the annual report stating whether the
association owns securities issued by enterprises covered by subsections (3) and (4).”
7. After section 15, the following shall be inserted:
”15a.-(1) A member of the board of directors and the board of management of an
association shall have adequate experience in carrying out his duties.
(2) A member of the board of directors and the board of management may not carry out the
duties as member of the board of directors or member of the board of management
respectively in an association if
1) the person in question is deemed to have insufficient experience to hold the relevant
position, including not having the necessary professional expertise to carry out the
management of the type of association said member is responsible for, and to make
investment decisions regarding the funds of said association,
2) the person in question is held criminally liable for violation of the Criminal Code or
financial legislation, and this violation entails a risk that the duties are not carried out
adequately,
3) the person in question has filed for suspension of payments, is under administration in
bankruptcy, has filed for debt restructuring, or negotiations have been initiated with
regard to compulsory composition for said person,
EXCLUDING MINOR AMENDMENTS