Ownership policy and steering
State ownership policy is active, open and pragmatic. The State develops its shareholdings using the tools of a responsible owner and aims for a long-term increase in ownership value. The premises for the State’s ownership policy are outlined in the Government Programme, which is implemented through an ownership policy resolution that is renewed each government term.
The Ownership Steering Department of the Prime Minister’s Office is responsible for preparing and implementing decisions related to ownership policy. The tasks of the Department include preparing and implementing the State’s ownership policy throughout the Government and steering the companies that are the responsibility of the Prime Minister’s Office.
The main tools in state ownership consist of formulating an ownership strategy independently and adopting sound corporate governance practices.
State ownership policy and steering are governed by the State Shareholdings and Ownership Steering Act (1368/2007) and the Act Amending the State Shareholdings and Ownership Steering Act (1315/2016). The legislation applies to decision-making involving state shareholdings and shareholder control in both state majority-owned companies and associated companies.
The legislation on ownership steering defines the powers of the Government and Parliament when decisions are made to acquire or relinquish control in a state-owned company. The legislation also specifies the division of powers between the Government plenary session and the ministry responsible for ownership steering. In addition, it includes provisions related to the sale of shares and corporate restructuring.
Parliament decides on the companies in which the State may relinquish its ownership (100, 50.1 or 33.4 per cent of votes). Similarly, Parliament decides on the acquisition of control by the State if the company involved is of major importance.
The Government decides on state ownership, i.e. on the acquisition and sale of shares. The ministry responsible for ownership steering, for its part, decides on most issues related to ownership steering and the exercise of shareholder control.
Other legislation
Aside from the State Shareholdings and Ownership Steering Act, some state-owned companies are subject to special legislation governing the field of activity involved, such as the Act on Credits and Guarantees Provided by the State-Owned Specialist Financing Company and the laws concerning alcoholic beverages.
The activities of all limited companies are governed by the Limited Liability Companies Act. Additionally, listed companies are required to comply with the Securities Markets Act and the guidelines issued by the Financial Supervisory Authority and the Helsinki Stock Exchange.
Good corporate governance refers to good overall decision making and control that works smoothly. State ownership steering complies with the OECD Principles of Corporate Governance that are based on cooperation among the OECD countries.
The Ownership Steering Department in the Prime Minister’s Office or another ministry may rely on external advisers in financial and legal matters, where necessary. The register of external advisers, which incorporates all ministries, ensures that all service providers are on a level playing field in offering their services. The Ownership Steering Department in the Prime Minister’s Office manages the register.
All external advisers are requested to submit their contact details, an extract from the trade register, a description of their services and a list of references to the Government Registry:
Register of external advisers / Ownership Steering Department
Register number VN/12304/2019
PO Box 23
FI-00023 GOVERNMENT, FINLAND
kirjaamo.vnk(at)gov.fi
Frequently asked questions
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State-owned companies are companies in which the State holds the majority of shares (at least 50.1 %). Associated companies are companies in which the State holds 10–50.1% of the votes. However, a company may be designated as an associated company by a decree issued by the Government, even if the State’s voting rights fall short of 10%.
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Ownership steering in respect of companies in which the State holds direct interest is exercised by the Ownership Steering Department in the Prime Minister’s Office, which is also responsible for the preparation and implementation of the state ownership policies. Additionally, the Ownership Steering Department is responsible for shareholder control in respect of Solidium, which oversees the special assignment companies. Ownership steering responsibilities in respect of the other special assignment companies are divided between seven ministries.
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According to the present Government Programme, the proceeds from the sale of state assets are primarily to be used for the repayment of central government debt. Up to 25%, but no more than EUR 150 million of any annual revenues exceeding EUR 400 million, may be used for projects designed to strengthen the economy and promote growth.
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A total of nine companies in which the State holds a majority interest have supervisory boards. They are Alko Inc, Finnish Fund for Industrial Cooperation Ltd; Finnvera plc, Posti Corporation, Kemijoki Oy, Neova Oy, Oy Veikkaus Ab, VR-Group Ltd, and Yleisradio Oy (Finnish Broadcasting Company YLE).
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The State holds interests in 69 major companies. Of these, the State owns shares in 12 companies (Anora Group, Elisa, Kemira, Konecranes, Metso Outotec, Nokia, Nokian Renkaat, Outokumpu, Sampo, Stora Enso, TietoEVRY ja Valmet) through its wholly owned holding company Solidium Oy.
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The State has direct holdings in four listed companies: Finnair Plc, Fortum Corporation, Neste Corporation and SSAB.
Additionally, the State holds interest indirectly through Solidium in 12 associated companies: Anora Group Plc., Elisa Corporation; Kemira Corporation; Konecranes Plc.; Metso Outotec Corporation; Nokia Plc.; Nokia Tyres Plc.; Outokumpu Plc.; Oyj; Sampo Group Plc.; Stora Enso Plc.; TietoEvry Corporation, and Valmet Corporation.
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No. As of autumn 2017, the Ownership Steering Department does not publish information on the remuneration policies of state-owned companies. The EU Shareholder Rights Directive and the Government Resolution on Ownership Policy (8 April 2020) further strengthen the obligation of the boards of directors of companies to disclose information on their remuneration practices. Therefore, it is not justified for an individual shareholder to disclose this information separately.
In line with the Government Resolution on Ownership Steering, the state owner expects the boards of directors of companies to describe their company-specific remuneration policies a their general meetings and to justify the managing director’s actualised performance bonus and the performance bonus of the management group as a whole.