Financial Business Act.pdf

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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 (6) An account-holding institution shall, upon request from the board of directors of the financial undertaking, provide the external auditors of said financial undertaking with access to information on accounts and deposits and provide printed statements herefrom with regard to persons covered by subsection (1). (7) The prohibition in subsection (1), no. 2 shall not cover financial instruments derived from shares in the financial undertaking, or an undertaking in the same group as the financial undertaking, received as part of the relevant person's salary. (8) The prohibition in subsection (1), no. 1 shall not cover loans to buy employee shares or the instruments mentioned in subsection (7). (9) The prohibition in subsection (1), no. 3 shall not cover shares acquired through utilising the instruments mentioned in subsection (7). (10) Chief internal auditors and deputy chief internal auditors may, irrespective of subsections (1)-(9), not have financial interests in the undertaking or group in which they are employed. 78.-(1) Without the approval of the board of directors, which shall be entered in the minute book of the board of directors, financial undertakings may not establish a business exposure with or accept collateralisation from 1) members of the board of directors and members of the board of management of the financial undertaking, or 2) undertakings where the persons specified in no. 1 are members of the board of management or members of the board of directors. (2) The exposures specified in subsection (1) shall be granted in accordance with the usual business terms of the financial undertaking and on terms based on market conditions. The external auditor of the financial undertaking shall make a statement in the audit book comments on whether the requirements set out in the 1st clause have been met. (3) The board of management and the board of directors shall in particular monitor the appropriateness and progress of the business exposures mentioned in subsection (1). (4) The provisions of subsections (1)-(3) shall also apply to business exposures with persons related to members of the board of management by marriage, cohabitation for no less than two years or kinship in the direct line of ascent or descent or as siblings, and to business exposures with undertakings in which such persons are members of the board of management. (5) A financial undertaking or undertakings within the same group shall not grant exposures to or receive collateralisation from an external auditor or the chief internal auditor or deputy chief internal auditor. This shall not apply to loans granted by a life-insurance company within the repurchase value of an insurance policy issued by said life-insurance company. 79. The regulations on group representation specified in the Public Companies Act shall not apply to employees in undertakings through which a financial undertaking carries on other activities on a temporary basis. EXCLUDING MINOR AMENDMENTS
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 General regulations regarding other duties and positions held by the management 80.-(1) Persons employed by the board of directors of a financial undertaking in accordance with legislation or the articles of 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 financial undertaking, cf. however section 199(9) and (10). (2) Other employees in a financial undertaking for whom there is a significant risk of conflicts between the interests of the employee and those of the financial undertaking may not, without the consent of the board of management, own or operate an independent enterprise, or in the capacity as a member of the board of directors, employee, or in any other way, participate in the management or operation of another enterprise than said financial undertaking. The board of directors shall be informed of any authorisation granted by the board of management. (3) The board of directors shall decide which employees have a significant risk of conflicts between the interests of the employee and those of the financial undertaking, and who shall consequently obtain the authorisation of the board of management, cf. subsection (2). The board of directors shall ensure that the relevant employee knows of this decision. The penalty provision in section 373(2) shall apply from the time when the employee in question has received information hereof. (4) The activities mentioned in subsections (1) and (2) shall only be carried on where the financial undertaking or undertakings which form part of a group or a joint organisation of administration with said financial undertaking do not have and do not enter into exposures with the enterprises specified in subsections (1) and (2) or undertakings which form part of a group with said undertakings. This shall not apply to exposures in the form of equity investments, exposures in the undertakings mentioned in subsections (5) and (6) and exposures in enterprises that form part of a group with the financial undertaking or enterprises where financial undertakings jointly or financial undertakings in association with funds and associations established under sections 207, 214 and 215 own more than 4/5 of the equity investments. (5) The ban on exposures stipulated in subsection (4) shall not apply in connection with participation in the boards of directors of Danmarks Skibskredit A/S, Dansk Udviklingsfinansiering A/S, BSU-fonden, LR Realkredit A/S, Bornholms Erhvervsfond, Grønlandsbanken A/S, Kongeriget Danmarks Fiskeribank, stock exchanges, authorised market places, clearing centres, central securities depositories, OMX AB, OMX Exchanges Oy, Industrialiseringsfonden for udviklingslandene (IFU) and Industrialiseringsfonden for Østlandene (IFØ). (6) The ban on exposures stipulated in subsection (4) shall not apply in connection with participation in the board of directors of an undertaking which is temporarily operated by a bank, mortgage-credit institution or insurance company pursuant to section 25 to secure or settle exposures already entered into. EXCLUDING MINOR AMENDMENTS (7) All authorisations granted by the board of directors in pursuance of subsection (1) shall appear in the minute book of the board of directors. (8) The financial undertaking shall at least annually publish information on the duties and positions approved by the board of directors under subsection (1). Furthermore, the external
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