The so-called restriction law dates back to the early days of World War II.
Helsingin Sanomat the reader says he has been looking for an apartment for a long time. While reading the articles of association, he has drawn attention to a strange article that has come across in some housing associations.
It stipulates that the company’s shares may not be owned by foreigners and the shares may not be transferred to them. To the reader’s ear, this is clearly chanting discriminatory.
Does the order really mean that a person who is not a Finnish citizen cannot buy an apartment from a housing association? Can a company be required to amend its articles of association in this respect to reflect modernity?
Real estate law specialized lawyer Marina Furuhjelm says the order is based on the law on the right of foreigners as well as certain entities to own and manage real estate and shares.
This so-called law of restraint dates back to the early days of World War II: the law came into force in July 1939, and in September of that year World War II broke out. In November, the winter war between Finland and the Soviet Union began.
“At that time, foreigners were not necessarily wanted in Finland and they did not move from one country to another in the same way as now,” says Furuhjelm.
The Restrictions Act has since been repealed. It has not been in force since January 1993. Still, the foreigner clause based on the Restriction Act may still haunt the articles of association of some housing companies.
“However, the alien clause is irrelevant.”
“It can be if it has not been removed in connection with the amendment to the Articles of Association. However, the alien clause is irrelevant. “
Would be worth it condominiums remove obsolete provision from articles of association for clarity?
According to Furuhjelm, this is not necessary. The cover page of each articles of association that contain an alien clause should contain a text stating that the articles of association and bylaws based on the Restrictions Act and the entries made thereunder are void.
“When the law was repealed, the authority has recorded in the articles of association that this section is no longer applicable. This was done precisely because the housing companies did not have to update the articles of association for this reason alone. ”
“The government and the property manager may not dare to touch the section, or they do not know which sections have been repealed.”
Furuhjelm believes that outdated alien clauses may have remained in the updated articles of association due to ignorance.
“If the housing association makes an amendment to the articles of association itself, the board and the property manager may not dare to touch the section, or they do not know which sections have been repealed.”
According to him, the redemption clause is the only transfer restriction that can be included in the Articles of Association under current law.
Read more: A redemption clause can overturn the purchase of an apartment – “If there is an unpleasant neighbor, the apartment can be redeemed”
In addition, the Articles of Association may still contain old consent and pre-emption clauses. These clauses are still valid, ie they must be observed.
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