Denmark November - 2007 Table of Contents

Eurojuris International European Law Guide

Denmark November - 2007 Table of contents

Introduction by the author 2

Word from the President of Eurojuris International 3

The legal system 4

Commercial law (incl. as a minimum Sales of Goods, 5 Marketing and Competition law)

Company law (incl. one remark on tax law) 6

Mergers & Acquisitions 7

Property (real estate) 8

Intellectual property rights 9

Agents and distributors 10

Personnel and labour law 11

Criminal law 12

Civil procedure and practical issues 13

Alternative dispute resolution 14

Kingdom of Denmark (figures) 15

Eurojuris International 16

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -1- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Introduction by the author

Denmark enjoys worldwide respect for its traditions and they inﬂuence every element of daily existence, but the Danes’ creative streak and sense of adventure ensure that they have an acute sense of which trends are worth following, both in the professional and every-day live.

Trends in terms of environmental protection and sustainability as well as innovation and high quality ﬁnish and design are key elements of the liberal and political stable professional climate in Denmark.

Despite being one of the smaller members of the European Union, Den- mark has played an important part of the development of the EU and vice versa. Nowadays some 2/3 of the total Danish exports go to EU member states.

As Denmark is more and more dependent on international trade, both the companies and government constantly strive to oﬀer an attractive climate for foreign investors.

Due to the geographical location, Denmark oﬀers easy access to the Nordic and Baltic regions, and the highly trained Danish workforce being for decades internationally minded and ﬂexibly organised provide a perfect base for foreign companies wishing to set up business with local manpower.

Covering all regions and legal areas, the Danish network of Eurojuris law ﬁrms can oﬀer you full service legal advice on all aspects of developing business in Denmark.

Rasmus Lund Attorney-at-Law Partner NORDIA law ﬁrm

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -2- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Word from the President of Eurojuris International

Eurojuris International with its 5000 lawyers represents one of the largest legal knowledge centres in Europe and beyond.

Doing business in Europe still remains a big challenge. The law still diﬀers from country to country.

Our goal is to make this huge local expertise and knowledge available to you.

We provide you with practial "European Law Guides" for the various jurisdictions. Drafted by professionals, they are a good introduction to conducting business in the diﬀerent countries.

We are keen to help you succeed in Europe and remain at your disposal.

Sincerely yours,

Thomas Rinne President Eurojuris International

Disclaimer

This guide is intended for commercial and general information purposes only. The information in the guide does not constitute legal or other professional advice. The transmission of this information does not create an attorney-client relationship with Eurojuris International or member ship law firms. The information should not be relied on in connection with specific transactions for which specific advice should always be obtained. We therefore disclaim all liability for the content of this guide and advice you to contact a lawyer if legal advice is needed.

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -3- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net The legal system

The Danish legal system originates from canonical and roman law and is comparable to the legal system in other continental European countries.

Most areas of society have been subject to The ordinary courts are divided on hierar- statutory regulation, and statutory law and chical lines. At the bottom there are city the general principles of statutory law is courts, which are to be found in each of the primary source of law in Denmark. the country’s 82 circuits, then High courts, Furthermore customary law and case law and finally the highest court in the country, supplement statutory law, even though the the courts have a far greater law-creating Supreme Court. In commercial matters, it is function in other European countries with possible to refer to the Maritime and legal systems inspired by Anglo-Saxon law. Commercial Court in Copenhagen, where The Danish legal system is divided up into special judges with commercial experience public law and civil law. The borderline is preside and there is a legally qualified not easy to define, but it is a characteristic chairman. Disputes may also be referred to of public law that it is often about taking arbitration before the Danish Institute of care of general social interests, and that Arbitration or other arbitration boards. state organs other than the courts play the major role in applying the legal regulations. Public law is divided into constitutional law, international law, administrative law, criminal law and the law of procedure, while civil law regulates reciprocal relations between citizens and between natural persons and legal persons, e.g. companies and institutions. At the top of the legal hierarchy stands the Constitutional Act of 1849, which regulates the relations between the highest state organs and provides for civil liberties (human rights). Throughout Denmark’s entry in the Common Market in January 1973 Denmark has to a great extent implemented EU Directives. Therefore industrial standards and a large part of corporate and commercial regulation correspond to those known elsewhere in Europe.

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -4- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Commercial law

Danish law is build on a general principle of accordance with “good marketing practices”. freedom of contract, however the legal system contains a wide range of rules protecting the Limitation and exclusion of liability commercial environment, especially in terms of consumer protection. In commercial contracts it is possible to limit or exclude any given liability. However, it is not Jurisdiction rules possible to exclude or limit liability for personal injuries regarding product liability. The Brussels Convention on jurisdiction and The courts may censor an exclusion of liability Enforcement of Judgements in Civil and if the exclusion is being considered unfair or Commercial Matters is acceded by Denmark, unreasonable. and apply in most legal actions with a com- Therefore contract partners often use specific mercial aspect. limitation clauses where a maximum limit for the liability is agreed. Governing law Data protection Denmark has acceded to the Rome Conven- tion, which in general regulates the proper The Danish Data Protection Act imple ments choice of law in Denmark with respect to Council Directive 95/46 EC on protection of contracts. individuals with regard to the collection and processing of personal data. Sale of Goods Competition law The Sale of Goods Act of 1906 applies to the sale of goods between parties having their The Danish competition Act implements places of business in Denmark, and the Act is Articles 81 and 82 of the EC treaty and prohib- based on the principle of freedom of contract. its anti-competitive agreements and abuse of The rules will therefore only apply when the a dominant position. parties have not agreed otherwise, or where trade custom or usage does not imply otherwise. The Danish Competition Act applies to private However, the Act does contain some manda- and public business activities as well as to aid tory rules on the sale of goods to consumers, from public which cannot be derogated from, and the funds granted to business activities. The Consumer Contracts Act and the Credit Competition Act applies to anti-competitive Agreements Act, which also contains manda- practices affecting the tory provisions, supplement the Act. Danish market. Foreign undertakings may therefore be subject to the prohibition of the Marketing practises Competition Act if their anti-competitive agreements or practices The Danish Marketing Practices Act protects have an affect on the Danish market. among other things consumers and professionals in Denmark by prohibiting measures, which are not in Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -5- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Company law

Denmark is a country with political stability and a very well functioning public sector. Furthermore ?Denmark is an internationally oriented society with a flexible and highly educated labour market, and Denmark has one of Europe’s most efficient distribution systems. Therefore many foreign groups find it profitable to set up companies in Denmark. Public Limited Companies and Private Limited Limited Partnerships (kommanditselskab / Companies are the most used forms of companies K/S) in Denmark. Businesses can also be formed as Limited Partnerships, Limited Partnership Compa- Limited Partnerships must comply with a set of nies, Partnerships and European Companies. The Articles of Association. A Limited Partnership can Danish corporate tax is 28 % placing it below the be formed as an entity with a general partner average European level. having unlimited liability while a given number of partners have their liability limited to a certain Public Limited Companies (aktieselskaber / amount. A/S) Limited Partnership Company The Act on Public Limited Companies implements (kommanditaktieselskab / P/S) the First, Second, Third, Fourth, Sixth, Seventh, Eight, Eleventh and Twelfth Company Directives, The Companies Act regulates certain aspects of and the Danish provisions reflect the EU legisla- the Limited Partnership Company including tion in this area. The Act on Public Limited Compa- formation, power to sign the company, the nies requires a minimum paid-up share capital of content of the Articles of Association and registra- DKK 500.000 and a twotier tion. The limited Partnership Company is a variety management structure based upon a board of of the Limited Partnership, only the general directors (with at least three members) and at Partner is required to have managerial and finan- least one managing director. The board members cial powers in the Limited Partnership Company. and the managing director(s) may reside anywhere in the world, as there are no require- Partnerships (interessentskab / I/S) ments regarding nationality. A partnership is based on a partnership agree- Private Limited Companies (anpartsselskaber / ment and all partners have unlimited liability. ApS) European Company (SE) The Danish Act on Private Limited Companies requires a minimum paid-up share capital of DKK As of 8 October 2004 companies have also had 125.000. The management may consist of either a the option of forming a European Company, sole managing director and no board or a board which is governed by Community law directly of directors only. Alternatively a traditional two-tier applicable in all Member States. A European management system may be established. Company will be able to operate on a European- Private Limited Companies are not allowed to wide basis. issue share certificates and to purchase own shares, and Private Limited Companies cannot be listed on the Copenhagen Stock Exchange. Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -6- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Mergers and acquisitions

In Denmark companies are constantly Acquisition of assets seeking growth and new national and international structures are created as an In case a company wishes to acquire assets integral part of corporate development. and liabilities rather than shares, it will often Businesses are bought, sold, and merged. In be preferable to incorporate a Danish com- general only a relatively small percentage of pany, which will acquire the assets and Danish companies are listed on the Copen- liabilities and employ the employees due to hagen Stock Exchange and foreign investors the exclusion of certain actual or contingent do not have to be burdened by the rules on liabilities and tax issues. However, the scope bidding for a listed company. Still some of of due diligence investigations and the the biggest and most successful companies seller’s representations, warranties and are listed, and in such case the regulations of covenants are often the same, regardless of take-overs must be complied with. whether shares or assets are purchased.

Denmark has implemented the Third Com- Acquisitions of assets is advantageous for pany Directive, and the Danish rules closely the purchaser because the book value of the reflect the provisions of the Directive. assets, on incorporation into the purchaser’s Furthermore Denmark has rules on merger balance sheet, may be increased to fair control, which apply in conjunction with the market value thereby increasing the basis for EU Merger Regulation. obtaining the necessary loan financing and also increasing for depreciation for tax Currently the Danish rules in force are aimed purposes. specifically at domestic mergers and there are no rules governing mergers between Danish and foreign companies.

Companies can merge in two ways; either one company takes over assets and liabilities of another company and continues to exist, while the company taken over is dissolved (absorption merger) or two companies are dissolved and joined to form a new company (consolidation merger).

There is no elaborate take-over code in Denmark, and in the absence of a surge in hostile take-overs it is unlikely that any such code will be adopted. However, the Compa- nies Act and the Securities Trading Act inﬂuence the conduct of a take-over.

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -7- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Property

In most cases a mortgage credit institution ﬁnances the purchase. However property can also be purchased with cash or ﬁnanced by a mortgage from a bank. The purchase is registered in the Danish land register, which is open to the public.

The owner’s identity, registered mort- companies may purchase real property in gages and other rights such as purchase Denmark without the consent of the options, owner’s bankruptcy etc. are listed Ministry in case the property is intended at the land register. The same often to serve as a necessary permanent applies for other burdens and easements residence for the purchaser, or when the such as right of way, local restrictions on purchase is a prerequisite for operating construction etc. the purchaser’s own business or supply- The land register makes it very easy for ing service. EU/EEA citizens may also the public to obtain information and purchase real property for all-year documents at a low cost within short residence without permission from the time as to what liabilities are attached to Ministry of Justice. Applications for any particular property. As the ranking of permission to purchase an all-year priority of lenders will appear on the residence are usually complied with, property’s list of mortgages the land while applications for permission to register serves as a dependable way of acquire holiday sites are only met if the providing security to lenders. The registra- applicant has special strong ties to Den- tion of a mortgage protects the mort- mark. According to a so-called detached gagee against subsequent purchasers house rule, the proﬁts are tax-free on the and sale of one-family or two-family against the mortgagor’s other creditors. In houses, owner occupied apartments, most cases the Ministry of Justice has to housing cooperative apartments and consent when people who are not weekend cottages when the owner has residents of Denmark, and who have not lived in the property fully or partially previously been Danish residents for a throughout the ownership period. How- total period of ﬁve years, wish to purchase ever, this exemption is in most cases property in Denmark. This also applies to subject to the property’s plot size being companies, associations, etc. which are less than 1,400 m2. not domiciled in Denmark. However, EU citizens, citizens of EEA countries, and EU

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -8- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Intellectual Property Rights

Upon Denmark’s entry into the Common Market in January 1973 and subsequent implementation of the intellectual property Direc- tives the Danish laws on various Intellectual Property have evolved continuously.

Copyright that will have eﬀect in every EU member country including Denmark. Trademarks can Denmark has implemented all of the EU be any symbol, which is able to distinguish a copyright related Directives and acceded to product or service from the products or most of the international conventions related services of other undertakings. Protection of a to copyright and neighbouring rights. registered trademark is given for a period of According to the Danish Copyrights Act 10 years from the registration date and holds copyright exists as soon as a particular work is a possibility for renewal. However if the mark created provided the work is the result of the has not been used for ﬁve years, the registra- author’s own intellectual creative contribution and protection may cease. Trademarks tion. Since protection is not conditional upon established through use remains in force until any form of registration there is no register the use lapses. available. The Danish Copyright Act protects traditional Designs works of literature and artistic works as well as maps, drawings manuals, certain types of The Danish Design Act implements the EU catalogues and databases, applied art Directive 98/71 on the protection of designs. (designs) and computer programs. The Act EU Regulation No. 6/2002 on Community also protects performers, producers of sound Designs also applies in Denmark and provides recordings and moving pictures, manufactur- protection for registered and unregistered ers of catalogues and databases and various designs. According to the Danish Design Act other neighbouring rights. Copyright protec- the appearance of a product or a part of a tion is given for the lifetime of the author plus product may obtain protection provided the 70 years. design is novel and has an individual charac- ter. A registered design is protected for a total Trademarks period of up to 25 years. Without registration, The Danish Trademarks Act implements the a community design is protected against EC Trademarks Directive. In Denmark protec- mere copying for 3 years. tion of trademarks is obtainable either by registration or through use. Furthermore it is possible to register a Community trademark

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -9- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Agents and distributors

Agents payment of indemnity is equitable consider- ing the circumstances. The amount of As a relatively small country in terms of indemnity cannot exceed a figure equiva- inhabitants, but large in terms of purchasing lent to the remuneration for one year calcu- power, foreign companies find it profitable lated on the basis of the agent’s average to set up business through agencies or annual remuneration over the preceding distributors in Denmark. Consequently five years. agency- and distribution agreements are widely used in Denmark. Distributors The Danish Act on Commercial Agents implements the EU Directive on Commercial Apart from the relevant national and EU Agents. Several provisions of the Act on competition rules including the relevant Commercial Agents are mandatory and group exemptions there is no statutory law cannot be derogated from. Upon termina- on distribution agreements. Therefore the tion or expiration of the agency agreement parties are to a large extent free to agree on Denmark has opted for the indemnity the terms of the distribution agreement. In model. According to the Act the agent has a most cases the parties decide on specific right to receive a responsible commission in termination notice provisions in their agree- case of limitations on noncompetition ments. In the absence of specific agree- (restraint of trade) clauses. The clauses ments, the courts will look to the length of cannot exceed two years in duration and the relationship and determine the notice cannot extend to geographical areas, groups period on this basis. The required notice of customers or kinds of goods not covered period will often exceed 6 months. Accord- by the agency agreement. In case an agency ing to Danish case law the distributor is not has been entered into for an indefinite entitled to indemnity or compensation if the period of time, the notice period is required supplier terminates the agreement in accor- to be a minimum of 1 month in the first year dance with the provisions of the agreement. of the contract period and is increased with However, compensation to the distributor 1 month for each subsequent year. Agency can be awarded under special circum- agreements can be entered into for a fixed stances. period of time in which case the agreement will expire on the agreed date. If the parties decide to renew or continue the agreement upon its expiry, the agency will be considered formed for an indefinite period of time and the above-mentioned minimum notice periods will apply. When the agreement is terminated the agent is entitled to indemnity if the agent has brought the principal new costumers or significantly increased the business with existing costumers from which the principal continues to derive substantial benefits, and if and to the extent

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -10- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Personnel and labour market The unemployment rate in Denmark is employing external manpower – paid or relatively low, and the Danish labour market is non-paid – for more than 20 hours per year, characterized by flexibility due to easy access must insure this manpower against permanent for both the employer and the employee to occupational injury. end conditions of employment on relatively short notice provided that dismissal is not Holidays with Pay Act based upon discrimination. According to the Danish Holidays with Pay Act all employees are entitled to paid holiday. An Hiring staff to a business is subject to compli- employee earns 2.08 holidays for each month ance with a number of rules and regulations. of full employment. This accumulates to 5 Some of the rules relating to employment of weeks’ annual holiday (25 days). personnel in Denmark are subject to statutory law applicable to all categories of personnel. Dismissal This includes rules concerning holiday entitle- A dismissal must be in writing and must be of a ment, maternity leave, parental leave, educa- factual and fair nature. The keystone of Danish tional leave, non-discrimination, sickness, employment law is that any employee not working hours, occupational injuries and subject to the Danish Salaried Employees Act is working environment. However, a distinction dismissible at a fair notice. between salaried employees and manual workers is of great importance because a Social security specific set of rules applies to certain catego- In case of illness, childbirth, childcare, pension ries. and unemployment, the social coverage is extensive. For that reason, social security is Salaried employees are subject to the to the mainly financed through taxes rather than mandatory Danish Salaried Employees Act and through private insurances, and employees pay often also a collective agreement, whereas a labour market contribution of 8 per cent as manual workers (blue-collar workers) are well as a special pension savings of 1 per cent. usually covered by collective agreements. Salary Employment contract There is no statutory minimum salary regulated When employing staff (blue- or white collar) for by legislation in Denmark. Minimum salary rates more than 1 month with an average working are defined at sectoral level through collective week exceeding 8 hours, the parties must, bargaining. But in practice salary levels are make an employment contract or an alternative agreed at company level. documentation in writing specifying nature of work, hours of work, salary, holiday, and place General managers of work. The Danish Salaried Employees Act does not include the general manager, and the general Mergers and Acquisitions manager will often be given a service contract Whatever terms any employee enjoys, such negotiated individually althougt many aspects terms will have to be accepted by any will be fixed according to what is customary for purchaser who acquires a company or business. the size and type of company in question.

Insurance Danish Act on Insurance Against Permanent Occupational Injury lays down that any person Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -11- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Criminal law

Denmark has one complete Criminal Danish law and is used i.e. in connec- Code, which is divided in two parts; a tion to murder and terrorism. In practice general part and a specific part. The prison for life means going to prison for specific part concerns crimes against 16 years. However, probation with a life and limb, homicide, endangering condition of psychiatric treatment can others, crimes against the personal be for an indefinite period. Death freedom, illegal coercion, unlawful penalty cannot be sentenced in Den- imprisonment, sexual offences, crimes mark. The general part of the Criminal against children and young people, Code concerns among other things indecent exposure, crimes in families rules regarding the general terms for and financial crimes. To each of the enforcing sentences, attempt, complic- provisions in the general part a maxi- ity and criminal liability for legal mum penalty is prescribed. The Criminal persons. As a general rule punishment Code has a specific section regarding can only be imposed by the courts i.e. financial crimes and investigation. The prison sentence, an order discharging public prosecutor of special financial the offender subject to the condition crimes (SØK) investigates extensive that he commits no offence during a financial crimes. The maximum penalty specified period, secure detention and for tax fraud, embezzlement, transac- legal consequences for psychiatric tions defrauding creditors and fraud are patients. Fine and confiscation can be 6 years. imposed both by the courts and admin- Prison for life is the most strict punish- istratively. ment to be sentenced according to

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -12- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Civil procedure and practical issues

Legal proceedings In order to levying of execution the creditor needs to create a base of execu- Danish civil law lays down rules for civil tion of the claim by obtaining i.e. a judge- courts, enforcement courts and probate ment, a settlement out of court, a docu- courts. ment of indebtness or a pledge of the claim. A settlement out of court must In Denmark Civil actions are usually fulfil certain criteria. settled in courts. The time frame for legal proceedings is generally between 8 and The creditor must obtain one of the 18 months from issue of proceedings to above-mentioned bases in order to judgement delivered by the district court pursue his claim. The usual procedure is (first instance). to send a document for collection to the debtor and get him to sign a settlement. In order to institute legal proceedings the If the debtor is not disposed to a settle- plaintiff must pay a court fee. At the ment, a lawyer needs to issue a writ introduction of the case the plaintiff must against the debtor in order to obtain a pay a fee of DKK 500,00 (EUR 67,00) if the judgement. The judgement allows the subject matter does not exceed DKK creditor to levy execution. 50.000,00 (EUR 6.707,00), and 1,2 pct. of the subject matter if the subject matter A personal liability of a claim means that exceeds DKK 50.000,00 (EUR 6.707,00). the debtor is liable with everything he When the court sets down a case for trial owns, and the creditor can levy execution the plaintiff must pay the same amount in all of the debtor’s personal possessions, as already paid at the introduction of the i.e. property and goods. case.

The court grants the plaintiff legal costs if the plaintiff succeeds in his claim. If the court finds for the defendant, the defendant is entitled to legal costs. However, the legal costs are taxed discretionary and generally do not cover all of the plaintiff’s expenses.

A creditor can recover his debts by the levying of execution in case of debtor’s non-payment. Levying of execution is a pledge created in the debtor’s possessions or property and is forced upon the debtor by the enforcement court.

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -13- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Alternative dispute resolution

To avoid legal proceedings many parties choose alternative dispute resolutions instead of going to court. Denmark has diﬀerent kinds of alternative dispute resolutions, and they all require that the parties participate in solving the conﬂict.

Arbitration Mediation

Arbitration implies that the parties have Mediation is a rather effective and signed an agreement stating that a cheap way of solving differences, which certain dispute must be settled by applies when dealing with any given arbitration proceedings instead of court. dispute regardless of the party being a Arbitration is “binding and final” and company or a private person. The therefore without access to appeal. purpose of the mediation is to find a solution considered a victory for both The arbitration tribunal consists of one parties. or more judges chosen by the parties themselves. Arbitration is therefore characterised by the parties appointing a private court to settle their differences.

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -14- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Kongeriget Danmark Kingdom of Denmark

Capital Copenhagen 55°43’N 12°34’E

Oﬃcial languages Danish

Government Constitutional monarchy - Queen Margrethe II - Prime Minister Anders Fogh Rasmussen

Accession to EU 1 January 1973

Area - Total 43,094 km² - Water (%) 1.62

Population - 2007 estimate 5,447,084 - Density 128.48 /km²

GDP (PPP) 2005 estimate - Total $187.9 billion2 - Per capita $34,7402

GDP (nominal) 2005 estimate - Total $259.7 billion - Per capita $47,984

HDI (2004) 0.943 (high)

Currency Danish krone (DKK)

Time zone CET2 (UTC+1)

Internet TLD .dk

Calling code +45

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -15- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net Eurojuris International has been a leading network of independent law firms in Europe since 1992. With some 600 firms and about 5000 lawyers, we cover 610 cities in 30 European countries. Eurojuris is currently focusing extensively on the quality of its network as about 50% of Eurojuris firms are ISO certified or will be certified in the near future. The main objective of Eurojuris Inter- national is to provide its member firms with a unique international legal networking that meets the growing demand of our clients.

All Eurojuris law firms are well-established and reputable firms in their community. They are care- fully selected and abide by defined quality standards relating to fees, mandatory professional indemnity insurance, knowledge of foreign languages, promptness and confidentiality. All firms maintain their professional independence.

With Compliments

Eurojuris Denmark - Stockholmsgade 41 - 2100 København Ø - Phone: +45 80 20 40 80 [email protected] - www.eurojuris.dk -16- Eurojuris International - 3, rue Abbé Cuypers – 1040 Brussels (Belgium) – T 32 2 502 18 82 [email protected] – www.eurojuris.net