DENMARK Law and Practice Contributed by: Thomas Maaberg Hansen and Peter Sand, Gorrissen Federspiel
6.7 Golden Shares and Special Government Rights Denmark does not have a generally applicable statu - tory “golden share” regime for defence companies under either the Danish FDI Act or the Danish War Material Act. National security control is principally exercised through the regulatory powers of the rele - vant authorities rather than through a general statutory government veto attached to a special class of shares. 6.8 Joint Ventures in the Defence Sector Restrictions on joint ventures in the defence sector involving a foreign partner are principally governed by the Danish FDI rules or (if applicable) the Danish War Material Act as described previously. 6.9 Interaction with Competition/Antitrust Review FDI/national security review operate as separate regimes under Danish law, with no specific co-ordi - nation mechanism between the relevant authori - ties. Where a transaction is caught by both regimes, approval is required under both independently. 7. Investigations and Litigation in the Defence Sector 7.1 Principal Investigative Authorities In general, it is the Danish National Police who investi - gates potential breaches of Danish laws. However, the State’s arms control and the Danish Business Author - ity carries out inspections and supervision with com - panies that manufacture war material and companies whose activities are covered by dual-use regulations or sanctions. Procurement Law The system is designed so that any party with a legal interest can file complaints about breaches of the pro - curement rules before the CBPP or bring proceedings before the courts. Please refer to 2.13 Challenging Defence Procurement Decisions regarding access to challenging defence procurement decisions. Competition Law The DCCA holds the power to investigate any under - taking, including companies active within the defence
• there are indications that the investor is deliberately attempting to circumvent the investment screening rules. The Danish War Material Act Pursuant to Section 4 of the Danish War Material Act, the Danish Minister of Justice must approve transac - tions that fall within the scope of Section 3, unless foreign policy or security considerations speak against it. The assessment is a broad, discretionary foreign policy and security policy evaluation carried out by the Ministry of Justice in consultation with other authori - ties, including (but not limited to) the Ministry of For - eign Affairs and the Danish intelligence services. 6.6 Conditions, Remedies and Prohibition FDI The Danish Business Authority may impose a broad range of conditions before granting approval, includ - ing behavioural commitments, structural remedies, limitations on the investor’s ownership interest or participation in management, restrictions on access to certain areas of the company, and security agree - ments. If a potential threat cannot be adequately mitigated by imposing conditions, the Minister for Industry, Business and Financial Affairs may refuse to approve or prohibit the investment or agreement. Where an investment or agreement has already been complet - ed, the Minister for Industry, Business and Financial Affairs may order its termination and require evidence An authorisation pursuant to Section 3 of the Danish War Material Act will typically be accompanied by cer - tain conditions and reporting obligations. Most nota - bly, the company will normally be obliged to inform the Danish Ministry of Justice about any subsequent changes to the ownership or control structure that may have an effect on the national security and foreign policy assessment of the authority. that it has been terminated. The Danish War Material Act Transactions may be prohibited based on foreign pol - icy or security considerations, as further described in 6.5 Assessment Criteria .
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