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Attorneys at Law Kim Åstrand

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Frequently asked questions

Here, we have gathered answers to the most frequently asked questions within our areas of legal services. Our goal is to provide you with quick and clear information to make your legal matters easier. If you cannot find an answer to your question here, please feel free to contact us for further advice.

Contract Law

It is always important to carefully read through the contract and understand its contents before signing. Check the terms, any penalties, and obligations. Ensure that the contract does not violate Finnish law and that it is balanced for both parties. If you are unsure, it is recommended to consult a lawyer to avoid future legal issues.

In the event of a breach of contract, you should first document the incident and contact the other party to try to resolve the dispute. If this does not succeed, you can hire a lawyer and potentially pursue the matter in court or through arbitration under the provisions of Finnish contract law.

Yes, in Finland verbal contracts are legally binding, but they can be difficult to prove in case of a dispute. Therefore, it is always safest to create written contracts where the terms are clearly stated.

The limitation period for claims in Finland is generally three years, according to the Limitation Act. For certain types of contracts, other time limits may apply. If you are uncertain, consult a lawyer.

During a contract review, a lawyer examines the content of the contract to ensure it complies with the law, is correctly drafted, and protects your interests. The review also identifies potential risks and provides suggestions for improvements.

Corporate Law

The choice of company form depends on the size and needs of the business. Common company forms in Finland are sole proprietorship (toiminimi), limited liability company (osakeyhtiö), and cooperative (osuuskunta). A limited liability company is often suitable when the liability is greater. A lawyer can help you choose the right form.

A shareholder agreement governs the relationship between shareholders. It should include the owners’ rights, decision-making processes, dividends, and how disputes are handled. Consult a lawyer to create an agreement that complies with Finnish company law.

In Finland, the board of directors and the CEO are responsible for the company’s operations and finances. Shareholders risk only the capital they have invested in the company, but board members can be held personally liable for violations of the Finnish Companies Act.

No, a CEO in Finland is not covered by the Employment Contracts Act (työsopimuslaki) and therefore does not have the same job security as regular employees. The CEO is typically employed under a separate director agreement that regulates the terms of employment, including termination. These agreements often include provisions about notice periods and potential severance pay. Therefore, it is important for a CEO to negotiate a clear agreement that protects their interests when ending the position.

To protect your company in the event of a dispute between shareholders, it is important to have a clear and well-drafted shareholder agreement. This agreement should address key issues such as decision-making authority and how conflicts are resolved (e.g., through mediation or arbitration). Make sure all shareholders understand and agree to the terms. In the case of serious disputes, legal assistance may be needed to protect the company’s interests and prevent long-term damage.

Real Estate Law

The buyer is responsible for investigating the property before the purchase. This includes checking the condition of the building, legal documents, and any easements. Defects discovered after the purchase may be difficult to resolve.

As the seller of real estate in Finland, you are liable for hidden defects for up to five years after the purchase, according to the Land Code. During this time, the buyer can demand compensation if the defect is significant and existed at the time of purchase.

Yes, in Finland, you can cancel a real estate purchase if there are significant defects or if the contract is not properly followed. A buyer can cancel the purchase if there are hidden defects that could not have been discovered during a thorough inspection, or if the seller has breached the terms of the contract. Cancellation must occur within one year of discovering the defect. Legal advice is often necessary to ensure all requirements are met.

An easement is a right attached to a property, while a right of use is a right attached to a person. Easements are typically permanent, while rights of use can be time-limited.

A title deed is proof of who owns a property in Finland. It is registered with the National Land Survey of Finland (Maanmittauslaitos) and is required during real estate transactions. An application for the title deed must be submitted within six months of the purchase, and fees and transfer taxes are paid during registration.

Business Arrangements

A business transfer in Finland should specify the purchase price, assets, liabilities, contracts, and employees. The agreement must comply with Finnish legislation, and a due diligence process is recommended to minimize risks.

A merger of limited liability companies is a multi-phase process, usually taking about 5-6 months. This period includes all necessary phases such as creating a merger plan, notifying creditors, executing the merger, and finalizing the settlement.

Yes, according to Finnish labor law, employees must be informed about changes that affect their working conditions. Depending on the number of employees, cooperation negotiations may also be required.

Yes, but the buyer must be informed about the company’s debts. It is common to use a due diligence process to clarify the company’s financial situation.

A due diligence is a comprehensive review of a company’s operations, finances, and legal obligations. It helps buyers make informed decisions during business transactions.

Employment Law

In Finland, termination requires just cause according to the Employment Contracts Act, such as redundancy or serious misconduct by the employee. The notice period depends on the length of employment and is regulated by law or collective agreements. The employer must provide written notice of termination and, in some cases, must first conduct cooperation negotiations.

Yes, an employment contract can be renegotiated in Finland, but only if both the employer and employee agree. According to the Employment Contracts Act, unilateral changes to contract terms are not allowed. If the employer wants to change conditions such as salary or working hours, the employee’s consent is required, unless the changes are due to substantial and lasting changes in the employer’s operations, such as economic, production-related, or organizational reasons.

A collective agreement is an arrangement between employers and trade unions that regulates working conditions, such as wages, working hours, and vacations. In Finland, collective agreements are binding for employers who are members of an employer organization. If the industry has a generally binding collective agreement, even non-unionized employers must follow it.

Cooperation negotiations in Finland must be held when a company with at least 20 employees plans significant changes that may affect the workforce, such as layoffs, furloughs, or reorganizations. The negotiations must be conducted in a timely manner and according to the Act on Cooperation within Enterprises, and the goal is to reach agreements in cooperation with employees.

Employment law disputes in Finland should first be handled through dialogue between the employer and the employee. If no resolution is reached, trade unions or employer organizations may mediate. As a last resort, the matter can be taken to the Employment Court (työtuomioistuin) if it concerns a collective agreement, or to the district court for other disputes. Legal advice is recommended.

Inheritance Law

A will must be written, signed, and witnessed by two impartial witnesses. It is important to follow the formal requirements in the Inheritance Code. Legal assistance is recommended.

If there is no will in Finland, inheritance will be distributed according to the Inheritance Code. Heirs are divided into inheritance classes: first, the inheritance goes to children and their descendants, then to parents and siblings. If no heirs are present, the inheritance goes to the state. A surviving spouse has the right to the home but is not a direct heir.

To avoid inheritance disputes in Finland, it is important to create a clear and valid will that expresses your wishes. Communicate openly with your heirs about your preferences and distribute the inheritance fairly. Ensure that the will meets legal requirements and is properly witnessed. It is advisable to consult a lawyer to ensure that all rights and obligations are taken into account.

Yes, in Finland, heirs must pay inheritance tax on the inheritance they receive. The tax is based on the value of the inheritance and the heir’s relationship to the deceased. The closer the relationship, the lower the tax. Inheritance tax rates vary depending on the value of the inheritance and the heir’s relationship to the deceased.

In Finland, a will can be contested if there are valid reasons, such as formal defects or if the testator was not of sound mind when creating the will. To contest a will, you must file a claim with the district court within six months of being notified of the will. It is important to seek legal advice to ensure that you have the right to contest and that the process is carried out correctly.