3 The interim board’s recommendations regarding the form of organisation

An interim board has been appointed to lead the work on establishing the new body. In addition to its organisational work associated with establishment of the body, the interim board has conducted a dialogue with affected parties in industry concerning how the activities of the new company should be arranged.

The choice of form of association with the state will to a great extent determine the authorities’ potential for control, the company’s freedom of action and responsibilities associated with executive procedures and administration of public funds. A major distinction in organisation of state undertakings is whether the undertakings are organised as a part of the state or as independent legal entities. Undertakings organised within the state are administrative bodies, which are legally speaking part of the state. Undertakings organised outside the state are independent legal entities which may have one of the following forms of organisation: wholly state-owned enterprises organised pursuant to the Limited Liability Companies Act, state-owned enterprises organised pursuant to the state-owned Enterprise Act, state-owned companies established through special statutes and foundations organised pursuant to the Foundations Act. As a general rule, commercial undertakings are organised as companies, whereas undertakings primarily involved in exercising authority are organised as administrative bodies.

The Ministry of Trade and Industry has requested the interim board to provide a recommendation regarding the arrangement and form of organisation of the new body. The interim board recommends that the new body be established as an independent company (limited liability company or the like), and that the framework conditions for the company be authorised by statute. The interim board bases its recommendation, inter alia, on the fact that the body will in this way be subject to well known and accepted forms of management that are recognisable to customers, the market and employees. Emphasis is also placed on the importance of closeness to and understanding of the market and the overall risk outlook when serving as a central player and adviser to export industry.