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Finnish limited liability housing companies

All JM homes are sold as shares in a limited liability housing company. One housing company consists of apartments in one or several buildings. The people who own apartments in the buildings form the shareholders of the company.

JM Homes 

A limited liability housing company is a special type of limited liability company in Finland, which is stipulated in the Limited Liability Housing Companies Act. 

On its own or combined with other shares, each share of the  limited  liability housing company provides the right of possession to the apartment or other part of the building or real estate as provided in the Articles of Association, within the building or real estate in the possession of the housing company (such as commercial premises, warehouses or parking places and garages). Each share or group of shares entitles its holder to possess a designated apartment. 

The rights, obligations and liabilities between the housing company and a shareholder are defined in the Limited Liability Housing Companies Act and the Articles of Association. The present Limited Liability Housing Companies Act entered into force on 1st July 2010. 



The general meeting of shareholders has the ultimate decision-making power in the limited liability housing company. Annual general meetings must be held annually, and, in addition, extraordinary general meetings can be held as necessary. 

The general meeting of shareholders adopts the budget for the housing company’s next financial year and decides on management fees collected by the company. It elects board members for the following term. Also an auditor and an inspector of activities can be elected in the general meeting. The general meeting also adopts the financial statements for the previous financial year and decides on discharge from liability to the board of the housing company of the previous term. The meeting decides on major renovations or procurements upon proposal by the board of the housing company. 

The general meeting has a general competence in the housing company, i.e., the general meeting decides on all matters not specifically designated to the board of the housing company in the law or in the Articles of Association. 



The housing company must have a board which takes care of the administration and is responsible for the appropriate organisation of the maintenance of the property and buildings and other activities. The board of the housing company is also responsible to ensure that the monitoring of the company’s accounting and asset management is appropriately organised. 

The housing company’s board is elected annually in the annual general meeting. Usually board members are elected from amongst the company’s shareholders, but shareholding is not an absolute requirement. 

The board of the housing company selects and, as necessary, dismisses the housing company manager. The housing company manager takes care of the maintenance of the real-estate property and the buildings together with the board and carries out daily management in the housing company in accordance with instructions by the board of the housing company. Usually the board of the housing company enters into a housing management service agreement with a housing management company, but this is not a requirement. 



Shareholders pay the company a fee for common expenses. The fee for common expenses includes a management fee and a fee for financial costs. The management fee covers maintenance of the building, minor unexpected repairs and ordinary costs (such as heating, building service company costs, housing management, real estate tax and waste management). The fee for common capital expenditures covers foreign capital, such as expenses for loans the company has taken. Usually shareholders are given the possibility to pay out the portion of company loan corresponding to their own apartments with a single payment, thus avoiding monthly fees for financial costs, which include loan interest costs after amortisation. 



Sharing of responsibility in a housing company is defined in the Limited Liability Housing Companies Act, but it can also be defined separately in the company’s Articles of Association. 

Pursuant to the Limited Liability Housing Companies Act, Chapter 4, Section 2, the housing company shall be responsible for maintenance that is not the responsibility of the shareholder. The housing company shall keep the building structures and insulating materials of owner apartments in good condition.  Moreover, the housing company shall be responsible for the maintenance of systems for heating, electricity, data communications, gas, water, sewer and ventilation and other similar basic utility systems. The housing company’s maintenance responsibility only concerns constructions, insulations and basic utility systems which the company has implemented or for which it has adopted responsibility for, as well as reparations of apartments’ indoor parts according to the company’s basic level. 

The shareholder shall keep the indoor parts of his or her owner apartment in good condition. 

Shareholders shall tend to their owner apartments with due care and perform any  maintenance work in a manner that does not damage the parts of the real estate, building or apartment for which the housing company is responsible. 

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