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1054
XV. SYNOPSIS of INDUSTRIAL LEGISLATION Of SWEDEN.
A meeting with the subscribers for constituting the company should be held
within & year from the time of presenting the foundation deed. If at the
meeting is proved that the joint capital has been fully subscribed to, the question on
forming the company is treated. It is considered to be constituted if this his
been decided unanimously or by a majority of votes running up to a fourth at
least of the whole number of subscribers, the founders inclusive, with a joint
capital of no less than a fourth of the total fund.
After the company has been formed, a memorandum of association must
be accepted, containing stipulations on certain subjects already touched upon in
the foundation deed; moreover, a board and reviewers have to be elected. — Ont
of the annual profit of a joint-stock company, at least 10 % must be put by for
a reserve fund. The right of a shareholder to partake in the administration of
the company’s concerns is exereised at the meetings of the company. The
joint-stock company is represented by the Board, consisting of one or more members.
The members are to be resident in Sweden and to be Swedish or Norwegian
subjects, unless, in some special case, the King permits the Board partly, at most
to a third of the total number, to consist of foreign subjects or else Swedish or
Norwegian subjects residing abroad. Members of the Board must not be elected
for more than five years.
An agreement in writing entered upon for a joint-stock company must be
signed on its behalf and in the name of the firm (Law of June 28, 1895).
Special ordinances are in force concerning banking, railway, and
insurance companies. Their memoranda of association are sanctioned by the King.
The capital stock of banking companies must amount to one million kronor
at least, bnt for a less extensive business, a smaller capital stock is allowed, not
below 200,000 kronor, though. If the memorandum is sanctioned, the King gives
permission for the banking business to be carried on for 20 years at most, and
beyond that, to the end of the civil year then running. The shareholders in a
banking company should be Swedish subjects, no less than 20 in number. They
are not responsible for the liabilities of the company with more than each has
invested or undertaken to invest (Law of Nov. 19, 1886, concerning banking
companies).
As to railvcay companies according to Law of March 5, 1897, and
insurance companies, according to Law of June 28, 1895, the law about joint-stock
companies is valid in the main, with the deviations resulting from the memorandum
having to be sanctioned by the King. The King puts the conformity of the
memorandum with the law above mentioned to trial, as well as with law and
ordinances in general; the same is done concerning railway companies, supposing
the sanction meet3 with no drawback for the sake of common weal. As to the
extent and nature of the insurance company business, the King decides whether
and how far special stipulations be needed, either about surety for the fulfilling
of the shareholders’ liabilities or about control on the observation of instructions
given, or else with some other object in view. The circumstance of a
shareholder’s being bound to contribute a little beyond the amount subscribed by him,
a duty not customary in ordinary joint-stock companies, makes no hindrance for
sanctioning the memoranda of insurance companies. (Law concerning these, of
June 28, 1895).
A special kind of associations are those for economical activity with the
purpose of procuring the members victuals or other necessaries, of selling
products of their work, of procuring dwelling-places for them, or, in any similar
way, to promote their interests. Such an association can be registered when
consisting of five members at least and having established regulations and chosen
a Board in accordance with the law concerning this matter; before being
registered, it cannot appear as an independent artificial person. The association
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