Legal status, share ownership and administration
Municipality Finance Plc is a public limited liability company according to the Finnish Limited Liability Companies Act, and is a licensed credit institution in accordance with the Finnish Credit Institution Act. Municipality Finance is supervised by the Financial Supervisory Authority.
Municipality Finance is owned by Finnish municipalities and organisations under their control, Keva and the Finnish state.
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 Turku / 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 Finnish legislation, the administration of Municipality Finance is steered by the Articles of Association required by the Limited Liability Companies Act as well as internal guidelines and policies, determined by the Board of Directors, pertaining to administration.
Besides legislation on credit institutions and regulation by public authorities (especially regulations and guidelines issued by the Financial Supervisory Authority), the internal guidelines concerning administration are based to a fundamental extent on the Finnish Corporate Governance Code issued by the Securities Market Association.
Since Municipality Finance is only an issuer of listed bonds and its shares are not subject to public trading, it is not appropriate to directly apply said Code with respect to Municipality Finance. Nevertheless, the company has decided to prepare its own, internal guidelines pertaining to administration on the basis of the Code. The Finnish Corporate Governance Code is available on the Securities Market Association’s website, and the regulations and guidelines of the Financial Supervisory Authority on the FSA website.