Right of association
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
The debate concerned the right of association and the modernization of rules for corporate forms and accounting. S supported a committee proposal to reject motions as the Government Offices are preparing reform proposals 1. S argued that it is good to investigate issues regarding corporate governance and accounting thoroughly 1. SD advocated for a system where one can start companies with low share capital and gradually increase it 2. SD considered that higher share capital does not alone stop crime 2. M wanted to remove unnecessary bureaucracy and advocated for digital receipts and meetings 3. M emphasized the need to balance simplification for entrepreneurs with protection against corporate hijacking 3.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Markus Kallifatides (S)
Mr. Speaker! We Social Democrats support a completely unanimous committee proposal to reject all motions in the area of association law, primarily with reference to the ongoing preparation of reform proposals in the Government Offices.
In all essential respects, it is the work of the previous S-led government in the area that is being continued by the Kristersson government.
Digital company and association meetings can be mentioned here, as well as business prohibitions resulting from prohibitions on conducting business activities that have been notified in another state. There is also now a referral from the Council of Legislation regarding the abolished requirement to preserve accounting information in original. It is a welcome proposal regarding the modernization of the accounting rules.
We Social Democrats will, of course, also in the future constructively and critically examine proposals when they reach the Riksdag's table and may very well return with our own initiatives during the mandate period. But it is naturally fundamentally good for Sweden that there is broad consensus here in the Riksdag that association law issues regarding corporate forms, corporate governance, accounting rules, etc. should be investigated and carefully prepared before decisions on new legislation are made.
Furthermore, I perceive that there is a broad consensus that the law on associations must be designed with a number of legitimate objectives in mind. This concerns the company's need for reasonably smooth administration, the state's interest in order and regularity in, among other things, tax collection, the public's opportunities to monitor their interests as employees, customers, or suppliers to, for example, limited companies, and the interest in protection against the over-exploitation of forms of association such as limited companies for criminal activities. The law on associations is an area for sense and balance, like almost all policy areas.
Mr. Speaker! I hope that the civil affairs committee's important work with the law of associations will also in the future be characterized by the seriousness that issues regarding the conditions for business and civil society, the functioning of the tax system, and the fight against economic crime deserve.
Mikael Eskilandersson (SD)
Mr. Speaker! When one reads the underlying documents, it may perhaps appear that there are two quite clear alternatives when it comes to share capital. One is a higher share capital of 50,000, and the other a lower one of 25,000. However, that is not quite the case.
The Sweden Democrats believe that there should be a different system for the minimum permitted share capital. We advocate for a system where one can start a company with a relatively low share capital, similar to what exists today with an affordable initial amount, but where one then successively increases the share capital.
We want as few obstacles as possible just when starting the company, because a limited company in so many ways is the best form of company – especially if the company subsequently expands. It could be a system with one level for starting capital that is manageable even for individuals with less capital and a higher level for the share capital once the company has gotten started. Such systems exist in many other countries and could serve as inspiration even for Sweden. They should be able to show the way for a new Swedish system. In the Danish system, there are limitations on the companies' possibilities to decide on dividends until they are full-fledged limited companies with a higher share capital.
We believe that Sweden should take inspiration from Denmark and develop more purposeful rules for limited companies. It is also important that the concept of a limited company does not become too diluted by the value of the company becoming too low. There should be an intrinsic value in the limited company, but at the same time, the possibility of starting a new company must be realistic and achievable even for individuals who are not wealthy in capital.
Crime must of course be countered, but that crime is strongly linked to the share capital and would drastically decrease just because the share capital becomes slightly higher is very naive to believe. Criminal companies are all too lucrative to be limited by a share capital of, for example, 50,000 kronor, and furthermore, the criminals would still have disposal of these 50,000 kronor.
There are also opportunities to start companies in other countries with much lower amounts than 50,000 if one needs a company. It is also possible to use sole proprietorships that are registered, for example, on coordination numbers for persons who perhaps do not even exist in the country, or to register the company on someone who can act as a front. Regardless, it is free of charge.
Criminal organizations often buy companies that have existed for many years, which were started long before the share capital was lowered, and for which they pay much more than the value of the share capital. They need a credibility from the company that makes it look serious at least on the surface.
Overall, the share capital is not at all the sole deciding factor for whether a company is used in criminal contexts or not. Other measures are needed to stop the criminal networks and clans that have emerged under the Social Democratic government's rule.
The investigation "The Company as a Criminal Tool" is currently being prepared in the Government Offices. From the majority side, we will shortly return with proposals that truly make a difference in the area and limit the possibility of using companies in a criminal manner.
Mr. Speaker! In conclusion, I just want to say that for us Sweden Democrats, the sum of 25,000 SEK is not sacred in any way. We would like to review what constitutes an optimal starting capital, preferably in connection with our review of how a system where the share capital is increased after a period of time can function.
I move for the rejection of the reservations and for the approval of the proposals in the report.
Jennie Wernäng (M)
Mr. Speaker! I would like to begin by expressing my support for the committee's proposal.
It should be easy to run a business in Sweden. The Moderates want to remove unnecessary bureaucracy and red tape for the country's entrepreneurs, and we are doing that now step by step.
On the table lies a legislative amendment regarding digital receipts. The retention requirement has entailed extensive administration and costs. Removing the requirement for physical papers and replacing them with digital solutions will reduce costs by nearly 4 billion kronor for Sweden's entrepreneurs. The amendment is proposed to enter into force as early as July 1 this year.
Decisions have also been made that make it possible for, among others, limited companies and economic associations to hold digital meetings. This applies from this year onwards.
The conditions for starting or expanding need to be good so that more people dare to start companies, but as we want to simplify, the criminals also see the opportunity to start companies to launder criminal activities and money. In addition, entrepreneurs are often targets for the gangs' system-threatening attacks. As many as one in five entrepreneurs are affected by such crime and subsequently consider closing their business, according to Företagarnas report Brott mot företagare 2021.
Mr. Speaker! Regarding the issue of association rights, which we are debating today, there is pleasingly much that we in politics agree on. It is good in the long term for the companies and good for Sweden. Therefore, I also want to mention the issue of share capital, which appears in our debates.
The Moderates take seriously that limited companies are used to a greater extent in criminal activities. There is currently an investigation on the government's desk regarding companies as tools for crime. The investigation has proposed various alternatives to address this, including that Bolagsverket's controlling role should be strengthened and that a new penal provision on corporate hijacking may potentially be introduced.
The investigator has not been tasked with reviewing what amount should apply for the share capital, but we see that different interests must be weighed against each other. The share capital rule for private limited companies was changed as recently as 2020 to stimulate entrepreneurship in the form of limited companies. Raising the amount would complicate small and new entrepreneurship for those who wish to conduct business in just this form.
Mr. Speaker! We Moderates shall stand on the side of the entrepreneurs. Different interests must constantly be weighed against each other – partly to protect companies against crime, partly to create opportunities to start new companies. Bureaucracy and red tape shall be reduced in our bureaucratic Sweden, but this must, of course, be combined with a high level of legal certainty. With a common political will, I believe that we will succeed in this together.
In conclusion, I want to mention that there must always be a freedom to agree on business deals and transactions in the business sector. It is a fundamental and necessary prerequisite for a well-functioning market economy. Why do I say this? Well, decisions are constantly being made at various levels within the EU that can affect the everyday lives of our companies. We in Moderaterna keep and will continue to keep an eye on these proposals in order to continue defending companies and entrepreneurship in Sweden. But it is, as said, an advanced world where not only is technology advancing, but also the ways in which criminal activity is conducted. But with that in mind, we stand for it to be easy to do the right thing in Sweden.
The deliberation was hereby concluded.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.