From several sides, there is an enormous focus on companies taking more responsibility and contributing to the green transition. Everyone wants the green transition to happen faster, which has led to ambitious and high demands, which have been mandated by law both nationally and internationally.

In order to oblige the companies and create transparency for the outside world, there are, among other things, from the EU Commission issued a number of directives and regulations to support the development. The EU Commission thus adopted the so-called disclosure regulation as recently as spring 2021, which has really boosted the use of the taxonomy regulation's classification system when it has to be assessed when an investment/economic activity can be considered to be truly "sustainable".

The regulation therefore contains, among other things, rules on financial market participants' and financial advisers' obligation to provide information in relation to the integration of measures regarding environmental, social and management issues (ESG) with regard to a financial product. The purpose is to create transparency with regard to negative sustainability impacts as well as their dissemination of sustainability-related information.

The intention is that in their management report the companies must report on a number of specific sustainability standards regarding the environment, social conditions and good corporate governance (ESRS). It can be, for example, the companies' concrete measures to reduce environmentally harmful discharges, countering/reducing climate change, sustainable measures such as the use and recycling of materials and buildings during renovation and new construction, protection of water and marine resources, circular economy, combating pollution, employee conditions, diversity and gender pay gap.

Sustainability risks can be an environmental, social or governance event or circumstance that, if it were to occur, could have an actual or potential material adverse effect on the value of the investment. In the long term, it is further expected that there will be regulations on sustainable due diligence from the EU, which will oblige companies to investigate their own company, business partners, value chain etc., in relation to environmental considerations, human rights and responsible corporate governance in the company's operation and management.

The EU requirements aim to support a faster sustainable transition and turn capital towards sustainable investments. The requirements ensure transparency for the outside world, but it is also expected that it will become a focal point for the reporting companies. Sustainability measures and the reporting requirements will also entail a significant workload, as the reporting does not only cover existing conditions, but also requires a description of the company's continued development towards increased sustainability.

Due to this situation, it is also particularly important that the companies quickly systematize their ESG policies and principles, sustainability measures and reporting requirements so that it becomes rooted in the company's strategy.

At the same time, the legal landscape shows that the law will play a decisive role in the green transition, not least as a result of the comprehensive and binding EU regulations and the rules on misleading marketing, where the Consumer Ombudsman has published a "quick guide" on the guidelines for when you have to call yourself sustainable in marketing - Read more here. The argument is therefore fundamentally that rules can change the behavior of companies, including financial companies, of investors and ultimately also of consumers. Many keys are played to facilitate the green transition, and work is done with many of the tools from the legal toolbox.

Rules on sustainability can have different purposes and focuses, where they e.g. is aimed at very broad themes or with a spotlight on more specified themes within Environment, Social or Governance. At the same time, the rules can have very different content of a more or binding nature, including many discretionary rules, which does not make the area any less complex.
ESG and sustainability in the various business sectors.

Among other things, players in the real estate industry will increasingly be met with inquiries about the company's current level of sustainability as well as demands to present concrete statements for future strategies and measures regarding the implementation of ESG and sustainability initiatives both from investors, financial institutions and public authorities. This will be both in connection with new construction, construction works, asset management of property portfolios and investments in real estate.

A number of sustainability measures are introduced in the updated version of BR 18, which entered into force on 1 January 2023. The aim is to create a more sustainable construction and also reduce CO2 emissions from construction. Under BR 18, requirements have been introduced for the calculation of the building's climate impact in the form of a life cycle assessment (LCA) and a fixed limit value for the climate impact of new construction over 1000 m2. As a result of the update of BR 18, any building that applies for a building permit after 1 January 2023 must meet the requirement to carry out an LCA.

The requirement for life cycle calculation (LCA calculation) for new construction - which is known from DGNB certifications - aims to make visible the building's climate impact "from cradle to grave". The calculation follows a fixed standard and is calculated in kilograms of CO2 equivalents per m2 per years over a 50-year period.

Already from 2025, corresponding limit values ​​will be introduced for all new construction, regardless of size. The calculation must be available when the construction is completed and must demonstrate a level below the limit value.

The many new ESG requirements will have a significant impact on many industries over the years, and many questions of a legal nature will naturally arise. If you need advice, you are always more than welcome to contact us on phone 56 63 44 66 or by email kontakt@dslaw.dk.

By partner and lawyer Dan Jordy

If you are the owner of a small agricultural property, it is very important to keep track of whether there is new mail in your e-box. This is because, in future, new categorizations will now form the basis for the provisional new property assessments that SKAT sends out.

For many, this "recategorization" will mean significant changes in property tax. If you are therefore the owner of a small country property, there is reason to be very careful. On 28 March 2023, the Danish Parliament finally adopted an amendment to the Property Valuation Act, which will now be rolled out in practice and which is the basis for the advanced categorisations.

From and including 11 April 2023, the Valuation Agency will start sending out letters regarding the recategorisation of housing, and if you are the owner of property which is currently categorized as country property, there is reason to pay special attention. If your home is recategorized as an owner-occupied home, it can mean that you have to pay several thousand kroner more in tax each year.

The categorizations are used by the authorities to make preliminary property assessments. As the plan is now, the new property assessments will have legal effect from January 2024.

Significant importance for the tax

The categorizations of the properties form the starting point for the taxation basis, and therefore it is very important that you as the owner of a property are aware of what data and information the authorities have registered about your property, as well as how they categorize your home. As a starting point, the ongoing taxation for agricultural properties will traditionally be less than for ordinary owner-occupied homes, but this may, based on the new assessments, be a thing of the past if the authorities recategorize your current agricultural property as an owner-occupied home.

In principle, there is a set upper and lower limit for properties with between 5 and 15 hectares of land, so it is especially the owners of these who must be aware of which categorization the Valuation Agency assigns to the property in the new assessments received these days. Between 20,000 and 25,000 properties with between 5 and 15 hectares of land are expected to be recategorized, according to the Valuation Agency, and this may result in the property moving from being categorized as agricultural properties to owner-occupied housing. Precisely this mentioned significant difference in which SKAT categorization is at the moment will, other things being equal, have great significance for the annual tax payment, which means that it is recommended to seek advice about what options there are to react in relation to the authorities' categorization of one's property.

In that picture, it is important to be aware that the current tax is lower on agricultural properties, but on the other hand, there is no taxation in connection with a sale if you live in owner-occupied housing, so it can be difficult to weigh the advantages and disadvantages.

IMPORTANT deadline of 15 days in relation to acting on the new assessments

Initially, the authorities will send you a letter of intent, which is a kind of proposal for a decision on the categorization of your home. Once it has been sent, you have 15 days to respond to the letter to the authorities. For this reason, it is very important to immediately deal with this notice and seek advice on your legal position.

For example, as the owner and recipient of a notice of demand, you must ensure that the information contained in the letter corresponds to reality, as there may have been significant changes in the actual circumstances, in relation to the information that the assessment agency has in its possession , which is of significant importance on the basis of the assessment.

For the aforementioned reason, it is essential to seek advice quickly, because once the 15 days have passed, the Assessment Agency will make a decision on the categorization of your home, which will either be the status quo or a recategorization. After this, you as a citizen must wait to see whether the decision changes the categorization of your home, a decision that can be appealed within a further six weeks.

It is very complex to weigh the advantages and disadvantages in relation to which categorization your property falls into. You also have the option of switching to the so-called transition scheme, where the home retains its current categorization until a change of ownership, but we would also recommend that this assessment be made after receiving advice on this.

This will mean, for example, that as the owner of an agricultural property that has been recategorized as a private residence, you can be allowed to maintain the property's status as an agricultural property and thus pay less tax until a change of ownership. You become very much bound by the transitional arrangement, and the choice cannot be changed. If, for example, you want to rebuild or demolish a building, you fall out of the transition scheme.

Discuss your options with DreistStorgaard

If you have questions about the assessments received or if you are interested in having your appeal options assessed, you are very welcome to contact us for a discussion on how we can assist in securing your legal position in this situation as best as possible.

Contact us on 56 63 44 66 or kontakt@dslaw.dk .

In today's digital world, the protection of personal data is a high priority for both citizens and companies. The EU's data protection regulation, also known as GDPR, requires certain companies to appoint a data protection officer (DPO) in extension of their core activities and organizations.

Violating this obligation can lead to large administrative fines that can reach up to EUR 10,000,000 or 2% of the company's total global turnover. It is therefore important to investigate whether your company is obliged to appoint a DPO.

For public authorities, it is mandatory to appoint a DPO. For other companies/organizations, the requirement applies if their main activity consists of processing personal data to a large extent, or if the nature of the processing or its purpose requires it. For example, a security company that carries out surveillance is obliged to appoint a DPO, since the core activity of this company is the taking of images and/or recording of personal data for the purpose of surveillance.

It is also relevant to appoint a DPO if a significant amount of personal data is collected and processed. This may for example be the case in connection with behavior-based advertising in a search engine, processing of customer geodata in an international chain or travel data and tracking data in connection with customer service. This list is not exhaustive and it is important to make a concrete assessment of the amount and type of personal data processed before deciding whether the company is obliged to appoint a DPO.

Furthermore, a company will be obliged to appoint a DPO if its main activities consist of regular and systematic monitoring of personal data on a large scale. This can, for example, include all forms of tracking and profiling on the internet for the purpose of behavior-based advertising or ongoing assessment of customers' creditworthiness. It may also include location tracking via mobile apps, loyalty programs or surveillance.

If the core activity of the company consists of processing sensitive personal data or information relating to criminal matters to a large extent, the company will also be covered by the DPO requirement.

When a company has established that it is obliged to, or voluntarily wishes to appoint a DPO, it must decide whether the DPO should be internal or external. The DPO must be independent from management and must not be instructed in the performance of his duties.

Regardless of whether you choose an internal or external DPO solution, it is important that the DPO is linked to senior management and that the reporting takes place there. However, this does not mean that the top management can instruct the DPO in its tasks, as the DPO must be considered an independent body in the company and be unaffected. This is also the reason why the DPO cannot be dismissed in connection with the performance of its work.

If the company chooses to appoint an internal DPO, this must have sufficient expertise and it must be ensured that the DPO is not assigned other tasks that could lead to conflicts of interest.

If an external DPO is chosen, a written agreement must be entered into with the external DPO, which ensures that the DPO has sufficient expertise and resources to carry out the tasks efficiently and independently.

The DPO's primary tasks are to inform the company about its data protection legal obligations, monitor whether the company complies with the legislation and assist the company with tasks, information, campaigns, etc. A DPO can also be a positive role in the company, as it contributes to ensuring compliance with the legislation and thus gives customers security and trust in the company.

For many companies, it can be difficult to assess whether there is an obligation to appoint a DPO or not. In this situation, it may be a good idea to seek professional help and advice.

If you are in doubt as to whether your company is obliged to employ a DPO, you are welcome to contact DreistStorgaard, who can help assess the need for a DPO and possibly take on the role of DPO in the company.

By associate attorney Sylvester Strand Thomsen
Certified CIPP/E and ISO 27701/2

On 29 March 2023, a bill for a new law on employment certificates was tabled. The purpose is to implement the EU directive on transparent and predictable working conditions (working conditions directive) in Danish law. This should originally have been implemented d. 1 August 2022, but has subsequently been postponed several times.

The background to the bill

The recent development of new forms of employment has created uncertainty about applicable rights and social protection, and therefore there has been an increased need for workers to be informed about their most important working conditions.

Who is covered by the bill?

The proposed bill is to replace the current Employment Certificate Act, and with its entry into force more wage earners will be covered. The current Employment Certificate Act covers all employees whose employment lasts more than 1 month and whose average weekly working hours exceed 8 hours. However, with the new bill, far more people will be covered by the law. Here, as an employee, you will already be covered if, for a period of 4 consecutive weeks, you have an actual or predetermined working time that amounts to an average of more than 3 hours per week. week.

What significance will the bill have?

In addition to the fact that more employees will be covered by the new bill, and thus many more employees will be entitled to an employment certificate (employment contract), it also expands the employer's duty to inform the employee of the terms of the employment relationship that will be most significant for the employee . In the current employment certificate act, a total of 10 conditions are mentioned, which the employer must inform the employee about, but in the new bill, however, a further five conditions have been added, which the employer must inform the employee about. These five conditions are:

1. Temporary employees must be informed of the identity of the user company as soon as this is known
2. The duration of and conditions for any probationary period
3. The right to training, which the employer may offer
4. The identity of the social security institutions that receive the social contributions linked to the employment relationship, as well as any protection in connection with social security from the employer.
5. If the work pattern is completely or predominantly unpredictable, the employee must be informed; 1) That the work schedule and number of paid working hours may vary, 2) Which days and reference hours can be assigned to work and 3) The minimum notice period the employee is entitled to before starting a work assignment, as well as any deadline for canceling the work assignment

The new bill also contains a limit for the maximum length that a possible trial period in an employment relationship can last. In the current Employment Certificate Act there is no such limit, but according to the bill, such a probationary period must be set to last a maximum of 6 months. If it is a fixed-term position, the probationary period may not amount to more than a quarter of the employment period, however, the probationary period may not exceed 6 months here either.

Changed deadlines for submitting information

In future, the employer will have to be aware of a changed deadline for submitting the mandatory information on 7 calendar days or 1 month after the beginning of the employment relationship or the day on which a change takes effect. This information can still be provided by sending it on paper or in electronic form.

Prohibition against preventing concurrent employment

In future, an employer may not prevent an employee from taking up ongoing employment or, on that basis, treat him unfavorably if it is still possible to work in accordance with a schedule determined by the employer. However, this does not apply if the circumstances of the work in question make the employee's secondary employment incompatible with the existing employment relationship.

Entry into force

The bill is being considered in the Danish Parliament, but it is proposed that the law enters into force on 1 July 2023.

Employees hired after 1 July 2023 must receive employment contracts in accordance with the new law. Employees employed before this date do not have to have new employment contracts, but they can request the disclosure of the new information that the law entails, which request must be complied with by the employer within 8 weeks after it is made.

Necessary considerations for the employer

The amendment to the employment certificate act thus gives the employer a good opportunity to review the company's current employment contracts, so that one is ready for the new rules to come into force and with a view to avoiding having to fall into any payment of compensation for a violation of the law.

At DreistStorgaard Advokater, we are happy to help review and possibly update the company's contracts so that these harmonize with the new legal provisions. You are welcome to contact us by email kontakt@dslaw.dk or by phone 56 63 44 66.

Of Stud.jur. Katrine Abildskov Roel & Attorney Nicolai Runge Andersen

A generational change is when a business, regardless of the legal form in which it is run, must be handed over to the next generation, either in the owner's own family, to an employee, or changes ownership to others.

Fundamentally, generational change is about securing your company's future, even without your presence.

A change of generations involves many emotions, big questions and to some extent also a risk of conflicts in the family.

In addition, the transition can cause the company to become vulnerable, because liquidity, management, employees and other relationships are suddenly at stake.

In addition, there are many different rules that must be taken into account: inheritance law, tax and duties, financing etc

It is therefore extremely important that the process is organized well in advance, so that the transition can take place in a controlled manner and at a pace so that the process is controlled.

Changes in ownership structure due to generational change

Changes in ownership structure, in connection with the transfer of a business to the next generation, therefore require thorough preparation and detailed planning for it to be successful for the current owner as well as the future owner.

In the event of a generational change, the ownership structure can be changed at once or in several planned stages.

Whatever you choose, with careful consideration and preparation, you will get the best results, both in the short and long term.

Restructuring models at generational change

There are many ways to restructure the company, including tax-free company conversion, share exchange, demerger, and the addition of assets.

Company transformation into a joint-stock or limited liability company upon generational change

Ownership structure and company form are inextricably linked to the opportunities and challenges you will face in connection with a generational change. If you run a company under personal auspices, it may be relevant to consider converting the company into a joint-stock or limited liability company to facilitate the generational change.

However, it is always the specific situation that determines whether a tax-free conversion to a limited liability company has more advantages than a taxable transfer.

Establishment of a holding company in the event of a change of generations

If you run a business in company form, it is often relevant to establish a holding company that will own the operating company. In connection with a change of generations, the holding company structure makes it possible to transfer shares or shares tax-free between e.g. parents' and children's holding companies, as well as to isolate operating assets and surplus liquidity in the parents' holding companies.

If a holding company is to sell shares in a subsidiary company tax-free, the holding structure must, as a general rule, be established at least three years prior to the sale.

Although establishing a holding company can be a useful preparation for the generational change, this can never stand alone.

Financing, ownership structure and tax

Financing a change of generations depends on many factors, including the financial capacity of both generations. If the change of generations triggers gift tax and capital gains taxation, this must be financed from personal taxed funds. If the taxes and duties are significant, the financing will often require large withdrawals from the company, which will impair the company's opportunities in the future.

It is therefore often of absolutely crucial importance for the company's future opportunities and performance that the generational change and the company's ownership structure are organised.

Changes in ownership structure, e.g. in connection with the transfer of a business to the next generation, requires thorough preparation.

The various forms of generational change all have both advantages and disadvantages and therefore require careful consideration and the involvement of relevant sparring partners to implement a successful generational change that involves all aspects of the economy, tax, law and the managerial aspects thereof.

At DreistStorgaard, we advise on all aspects of the generational change. Contact us for an informal chat about how we can help ensure the best possible handover from one generation to the next.

Can I pick up the mobile phone when my girlfriend calls? Can I take a picture of the beautiful view when I drive over the Great Belt Bridge? Can I change the GPS route when I'm on the road?

Inattention is estimated by the authorities to be a decisive factor in one third of all traffic accidents. This has meant that the Road Traffic Act has made it illegal to use hand-held devices while driving a vehicle.

According to Section 55a of the Road Traffic Act, you may not use handheld telecommunications equipment and other handheld communication devices while driving as the driver of the vehicle . But what does that really mean?

What does vehicles mean?

Vehicles are not just cars and lorries – you must also pay attention to the rule if you cycle, ride a moped, motorcycle, electric scooter and the like.

Which devices are covered?

Telecommunications equipment and communication devices include, in addition to a mobile phone, tablets, GPSs, computers, smart watches and whatever communication gadgets technology can come up with in the future. If you can communicate through the device, do not use it while driving!

What is "use"?

The prohibition includes any use of the hand-held device including, among other things, receiving and making calls, receiving and making SMS or MMS, using the internet for e.g. reading emails, and using the camera to take pictures or video.

So if during the drive you think " What time is it ?", don't pick up your mobile phone to look at the clock on the display - because then you are using your mobile phone, which is illegal!

Conversely, you cannot be punished for looking at your smartwatch to see the time, because here you do not need to use the device.

Even if the mobile phone is switched off and you only need to put it in your bag, it is use. So you cannot get out of the penalty on the grounds that you have neither received a call nor an SMS or the like.

Requirements for physical use

Only handheld use is prohibited. That is, if you can use the voice activation, a headset or the vehicle's own buttons to start and end the call, then there are no problems. Because then you don't use the device physically.

If your mobile is attached to a holder in the vehicle, then you are also outside the scope of the law.

However, you should be aware that if, due to inattention when using the hands-free use of the mobile phone, you wobble between road lanes or the like, you will still be punished according to the general provisions of the Road Traffic Act on vigilance and considerate driving. So even if you follow the rules for hand-held devices, you still have to do it in a way where you are aware of the traffic.

What if I'm sitting in a queue and not actually driving?

It is during the entire drive that you must not use the device - so also if you are queuing on the motorway or waiting for a green light.

If you want to use the device physically, you must pull over to the side and switch off the car before it is legal.

What is the punishment?

If you were to take your mobile phone while waiting for a red light, this would result in a cut in your driving license and a fine of DKK 1,500.

Drivers of bicycles, mopeds and electric scooters are exempt from the penalty, but still have to pay the fine.

By associate attorney Mette Tarp Pedersen