StarGames

The company's purpose guides business decisions

The purpose of the company's operations is a regulation that guides the company's authority. The board of directors and the managing director may not take legal actions that are contrary to the company's purpose. Unless otherwise provided in the articles of association, the purpose of a limited liability company is to generate profit for the shareholder. The implementation of the purpose of the company's operations is at hand in all activities of the management of the limited liability company and in decision-making regarding business transactions. According to Section 1:8 of the Finnish Limited Liability Companies Act, the management must act carefully to promote the company's interests.




In the context of the activities of a limited liability company, the purpose of generating profit under Section 1:5 of the Finnish Limited Liability Companies Act means the positive development of the shareholder's asset value over a longer period of time and in proportion to time. According to the government's proposal (GP 109/2005), the principle of generating profit means the obligation to generate profit for shareholders in the long term, taking into account the investment, product development and personnel development needs that increase the company's value, as well as socially acceptable procedures, and not a unilateral obligation to maximize distributable assets to shareholders in the short term.

The dissertation clarifies the purpose of the law with the definitions of short and long term by equating them with tactical and strategic purposes. Tactical purposes have a connection to a time period of less than three years. Strategic purposes have a connection to a time period exceeding three years. The dissertation discusses the topic in a literature review and a discussion section if the company's business expands to operations in accordance with the new Gambling Act 16/2025. In this case, it requires a change to the industry choices mentioned in the articles of association.

The forum has previously referred to the gambling industry, where Orpo's government program 2023, A Strong and Committed Finland, also mentions the goals of a hybrid model of gambling legislation. The dissertation takes a position on this proposal for a gambling law prepared in Government Proposal 16/2025. The transition to a hybrid model frees up the monopoly market to a hybrid market structure in its jurisdiction.

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