Act on an amendment to sections 1 and 2 of the Act on the government-owned company called Finnish Industry Investment Ltd

Rendered in Helsinki, 2 February 2007

In accordance with a decision by Parliament, sections 1 and 2 of the Act of 30 December 1999 (1352/1999) on the government-owned company called Finnish Industry Investment Ltd are amended as follows:

Section 1

Finnish Industry Investment Ltd is a government-owned company in the equity investment sector, the purpose of which is to promote in particular the business of Finnish small and medium-sized enterprises by placing investments, primarily in equity funds. The company may make equity investments direct in the investees, particularly in corporate ventures requiring the taking of long-term risks.

The company’s investment activities must be channelled to remedy shortcomings in the provision of financing by the private equity investment sector.

The company may make similar investments in foreign funds and corporate investees providing their activities promote economic development in Finland.

Section 2

The company’s activities must be commercially profitable in the long term. In order to fulfil the company’s trade and industry policy mission, a larger than usual risk may be accepted in individual investment decisions.

This Act will enter into force on 1 March 2007.

Helsinki, 2 February 2007
President of Finland Tarja Halonen
Minister of Trade and Industry Mauri Pekkarinen

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Act on the company called Finnish Industry Investment Ltd

No. 1352/1999, rendered in Helsinki on 30 December 1999

In accordance with a decision by Parliament, the following is enacted:

Section 1

The mission of the government-owned company called Finnish Industry Investment Ltd is to improve the business prospects particularly of small and medium-sized enterprises by making quasi-equity investments in enterprises engaging in equity investment activities.

The company may make quasi-equity investments direct in corporate investees, particularly for corporate projects requiring taking long-term risks.

Section 2

The company’s activities must be commercially profitable.

In individual investment decisions, lower expected earnings and a higher risk than usual may be accepted as an exception.

Section 3

The company’s entire stock must be in the direct ownership and control of the state.

Section 4

The Council of State confirms general guidelines for the company’s investment activities. The Ministry of Trade and Industry may give the company commissions which are necessary for the attainment of the goals set for the company.

The company must provide the Ministry of Trade and Industry on its request with the information necessary for monitoring and guiding the company’s operations.

The company belongs to the administrative sphere of the Ministry of Trade and Industry.

Section 5

More detailed regulations on the implementation of this Act will be supplied, if necessary, by the Ministry of Trade and Industry.

Section 6

This Act will enter into force on 5 January 2000.

This Act repeals the Act on the government-owned company engaging in equity investment activities of 29 December 1994 (1531/1994) and the Council of State’s decision of 19 September 1996 on the general principles of Finnish Industry Investment Ltd’s equity investment activities (702/1996). The regulations of the aforesaid Act and of the Council of State’s decision shall apply to the company’s commitments entered into before this Act comes into force.

Government Bill 132/1999
Memorandum of the Finance Committee 14/1999
Parliamentary Reply 119/1999

Helsinki, 30 December 1999
President of Finland Martti Ahtisaari
Minister of Trade and Industry Erkki Tuomioja

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Translated by Oxford Translations Oy for Finnish Industry Investment Ltd