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 (2) Notwithstanding section 17(2) of the Bankruptcy Act, a financial undertaking unable to meet its obligations regarding subordinated capital taken up as hybrid core capital or subordinate loan capital shall not be regarded as insolvent. (3) After issuing the bankruptcy order, the bankruptcy court shall, after negotiations with the Danish FSA, appoint one or more trustees. One of the trustees shall be a lawyer. (4) If an insurance company not carrying out life-assurance business is declared bankrupt, section 253 shall apply correspondingly. (5) If a life-assurance company is declared bankrupt, its portfolio of insurance contracts shall be placed under administration in accordance with sections 253-258. 235. The Danish FSA shall be entitled to participate in meetings of creditor committees and committees of inspection. A draft for final accounts and distribution of dividend of the insolvent estate shall be presented by the trustee to the Danish FSA in order for the Danish FSA to make a statement before the trustee submits this to the bankruptcy court. 236. If a savings bank, a cooperative savings bank or a mutual insurance company is declared bankrupt, the trustee shall notify the Danish Commerce and Companies Agency and the Danish FSA of the commencement and completion of the bankruptcy proceedings. 237.-(1) The Minister for Economic and Business Affairs may decide that the liquidator or the trustee is to, at the expense of the estate, notify policyholders of the winding-up of the insurance company and of the consequences hereof for said policyholders. (2) The Minister for Economic and Business Affairs may lay down more detailed regulations regarding the form and contents of said notification. Suspension of payments 238.-(1) The Danish FSA may apply for a suspension of payments for financial undertakings, if the interests of the depositors, bond owners, investors or policyholders so require. (2) An application for suspension of payments under subsection (1) shall be accompanied by a proposal by the Danish FSA regarding the appointment of a supervisor during the suspension of payments and a declaration from the relevant persons that they are willing to assume this duty and that they meet the conditions of section 238 of the Bankruptcy Act. (3) An application for suspension of payments may not be withdrawn by the financial undertaking without the consent of the Danish FSA. Compulsory composition 239.-(1) The regulations of the Bankruptcy Act regarding compulsory composition shall, with the authorisation of the Danish FSA, apply to insurance companies with the exception of lifeassurance companies. In cases of compulsory composition of reinsurance companies, the authorisation by the Danish FSA shall replace the assent mentioned in section 166(1), no. 2 of the Bankruptcy Act. The Danish FSA shall, in advance, ensure that the reinsurance company has contacted all known creditors regarding the commencement of the negotiations with 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 regard to the compulsory composition, and shall ensure that no less than 40 per cent of the responses received accept commencement of such negotiations. (2) In connection with the status report that must be prepared when commencing negotiations with regard to compulsory composition, cf. section 165 of the Bankruptcy Act, the bankruptcy court may, in cases of compulsory composition of reinsurance companies, following consultation with the Danish FSA, appoint an independent actuary for the preparation of a statement of the value of the claims that have been made. (3) In cases of compulsory composition of reinsurance companies, the claims shall be made under section 176 of the Bankruptcy Act regarding the adoption of a compulsory composition in relation to the creditors present and the claims made. 240. The provisions of this Act regarding the powers of the Minister for Economic and Business Affairs and the Danish FSA, and regarding the obligations of financial undertakings towards the Minister for Economic and Business Affairs and the Danish FSA shall, with the necessary changes, apply to such undertakings, which have entered into suspension of payments or are being dissolved. 241. Part 14 of the Public Companies Act shall, with the necessary changes, apply to savings banks, cooperative savings banks and mutual insurance companies. 242. The Minister for Economic and Business Affairs shall lay down regulations with a view to compliance with Community law regarding restructuring and liquidation of credit institutions and insurance companies. 243. The Danish FSA may, in pursuance of the procedures laid down under Community law in this respect, prohibit a foreign credit institution, finance institution, investment firm, investment management company or insurance company covered by section 30(1) and section 31(1) domiciled in another country within the European Union or in a country with which the Community has entered into an agreement for the financial area from carrying out activities in Denmark through a branch or through offering services in Denmark. The Danish FSA may prohibit the undertakings mentioned in the 1st clause from carrying out the activities mentioned in the 1st clause if the undertaking wilfully or repeatedly has violated the provisions of this Act, regulations issued pursuant to this Act or other legislation regarding said credit institution, finance institution, investment firm, investment management company or insurance company, and if it has not been possible to cease said violation by means of orders or sanctions under this Act. Part 16 Crisis management Special regulations regarding banks EXCLUDING MINOR AMENDMENTS 244. The Minister for Economic and Business Affairs shall establish a measurement board, cf. section 245, which in connection with a tax-free merger or a transfer of assets between banks as a result of a bank no longer meeting, or coming close to no longer meeting, the solvency requirement in section 124, may stipulate the tax value at the date of merger of loans made by the ailing bank. The measurement board may only make decisions on request from one of
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