Legal status, share ownership and administration
Municipality Finance Plc (MuniFin) is a public limited liability company within the meaning of the Finnish Limited Liability Companies Act and a licensed credit institution as defined in the Finnish Credit Institution Act. MuniFin is supervised jointly by the Finnish Financial Supervisory Authority and the European Central Bank.
MuniFin is owned by Finnish municipalities and municipally controlled entities, the public sector pension fund Keva and the Republic of Finland.
The share capital of MuniFin is EUR 43,008,044.20 and the number of shares is 39,063,798. MuniFin has two classes of shares: 26,331,646 A shares and 12,732,152 B shares. The company is not aware of any shareholders’ agreement that could essentially affect its operations.
|SHAREHOLDER||SHARE OWNERSHIP, %|
|Republic of Finland||16.0|
|City of Helsinki||10.4|
|City of Espoo||4.0|
|City of Turku||3.5|
|City of Vantaa / VAV Asunnot||2.5|
|City of Tampere||2.5|
|City of Oulu||2.3|
|City of Jyväskylä||1.8|
|City of Kuopio||1.5|
|Other shareholders, total||25.0|
In addition to the Finnish regulation, the administration of MuniFin is governed by the Articles of Association set out in the Limited Liability Companies Act as well as governance-related internal guidelines and policies as decided by the Board of Directors.
Besides the regulation on credit institutions and the regulation issued the by the authorities (especially regulations and guidelines issued by the Financial Supervisory Authority), the internal guidelines concerning administration are based largely on the Finnish Corporate Governance Code issued by the Securities Market Association.
Since MuniFin is only an issuer of listed bonds and its shares are not subject to public trading, it is not appropriate to directly apply the Finnish Corporate Governance Code. Nevertheless, the company has decided to prepare its own, governance-related internal guidelines based on the Code. The Code is available on the Securities Market Association’s website, and the regulations and guidelines of the Financial Supervisory Authority are available on the FSA website.