Mandatory rules (ABL)

What are mandatory rules?

Mandatory rules (Swedish: tvingande regler) are provisions of the Swedish Companies Act (ABL) that apply whatever the owners have agreed. They cannot be overridden by a shareholders' agreement or the articles of association. They protect the company, owners and creditors. The opposite is non-mandatory rules.

Mandatory rules and the share ledger

One example is the requirements for the share ledger. The board of directors is responsible for keeping, preserving and making it available, and cannot contract that away. The principle of equal treatment is also based on mandatory rules.