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
under sections 89-96, the dividend shall, however, be approved by the management of the
affiliation.
(2) The general meeting may resolve that gifts for social purposes or similar may be made
from the funds of a cooperative savings bank provided that such gifts seem reasonable after
taking account of the intention of the gift and the financial position of the cooperative savings
bank, as well as other circumstances in general. For the purposes mentioned in the 1st clause,
the board of directors may apply amounts of little significance in relation to the financial
position of the cooperative savings bank.
VII Intervention in or cessation of the financial undertaking
Part 14
Amalgamation and conversion
Amalgamation
204.-(1) A financial undertaking may not, without the permission of the Minister for Economic
and Business Affairs, be amalgamated with another financial undertaking or a specific business
function of another financial undertaking. The same shall apply when the continuing
undertaking is a foreign undertaking.
(2) An insurance company which, in the event of amalgamation, transfers all or part of its
portfolio of insurance contracts to another insurance company and the amalgamation is not
covered by part 15 of the Public Companies Act shall be released of its responsibility to the
policyholders when being granted the permission mentioned in subsection (1).
(3) Unless the Minister for Economic and Business Affairs considers that a license for the
transfer of an insurance portfolio should be refused, the Danish FSA shall publish a report on
the transfer in the Danish Official Gazette and in a national daily newspaper. The report shall
contain a request to the policyholders whose insurance contracts are proposed to be
transferred to notify the Danish FSA in writing no later than three months after the publication
if they have any objections to the transfer. At the same time, the company shall submit a
notice of the transfer and the report of the Danish FSA to the policyholders whose addresses
are known to the company.
(4) After expiry of the time limit mentioned in subsection (3), the Minister for Economic and
Business Affairs shall, under consideration of the objections made, decide whether the
insurance portfolio may be transferred in accordance with the proposal made. The transfer
may not be invoked as basis for cancelling the insurance contract.
(5) If the transfer of an insurance portfolio takes place in connection with a merger of
insurance companies, said merger may, notwithstanding section 27 of the "lov om
forsikringsaftaler" (act on insurance contracts), not be invoked by the policyholders as a
ground for cancelling the insurance contract.
EXCLUDING MINOR AMENDMENTS
(6) In connection with the transfer of life-assurance business, the insurance conditions of the
transferor company may only be modified to the extent deemed by the Danish FSA to be a
necessary consequence of the transfer, including changes in the rules for bonuses.