The Danish Parliament has adopted a number of amendments to the Public Limited Companies Act coming into force from 1 October, 2003. The amendments are predicted to lead to an improvement in the communication facilities between companies and shareholders and to bring the practical company and securities regulation into line with technological development. The Danish Government has high expectations for these progressive amendments and hopes they will result in a boost in foreign venture capital and private equity investments in Denmark.
The amendments are one of several developments in corporate governance over the past 10 years and are the outcome of the action plan issued by the liberal Danish Government for the modernisation of Danish company law and a strengthening of the participation of shareholders (active ownership). In addition, the increased use of IT facilities is a major issue in the Organisation for Economic Co-operation and Development’s principles for corporate governance, as well as the recommendations from the Winther Committee and the Danish Norby Committee.
