Corporate governance

At Danish Ship Finance, we follow the recommendations for Corporate Governance within the financial industry.

The Danish Financial Council recommends that a company’s code of conduct is published with a description of the company values and desired behaviour regarding operations and management.

Danish Ship Finance follows the recommendation and has prepared the following Code of Conduct (in Danish).

Finans Denmark code of management

In addition to the recommendations of the Corporate Governance Committee and the applicable legislation, the Finans Denmark has conducted a management code with recommendations for member companies. The purpose is to ensure that banks and other financial companies actively deal with the number of key management issues and to make them achieve greater transparency around the framework for managing individual companies. The management code must be applied according to the follow-or-explain principle.

Danish Ship Finance reports annually on compliance following the Code of Management. Read more here (in Danish) Statement of the compliance with Finance Denmark code of management

Active owners Denmark guidelines

In addition to the other guidelines, Active Owners Denmark has also conducted a set of guidelines for responsible ownership and corporate governance. They relate to the company level and the private equity fund level.

Private equity funds and private equity fund-owned companies must adhere to the guidelines according to the comply-or-explain principle. The guidelines aim to increase the general level of information so that the public can gain insight into the work of the mutual funds. The guidelines are available on Active Owners Denmark’s website. Read more here (in Danish) Compliance with Active Owners Denmark’s guidelines 

Evaluation of the board of directors

In December 2021, an evaluation of the Board of Directors was conducted, following the standards for corporate governance. The evaluation included the board’s composition, the conducted work, and the leadership of the Chairman. To ensure anonymity, the evaluation was facilitated by an external consulting firm, where the board members completed a comprehensive questionnaire. The findings and conclusions were subsequently presented to and discussed by the Board of Directors.

The aim of the evaluation was to ensure that the composition of the board, as well as the special competencies of each member, enable the Board of Directors to perform the required tasks.

The evaluation is supplementet by an annual self-evaluation.

The Corporate Governance Committee has published several recommendations that all listed companies are encouraged to follow and report on according to the follow-or-explain principle.

The main topics that the companies must address are:

  • The communication and interaction with investors and other stakeholders
  • The duties and responsibilities of the Board of Directors
  • The composition, organisation, and evaluation of the Board of Directors
  • Remuneration of the management
  • Risk management

 

We report annually on compliance, following the recommendations of the Corporate Governance Committee.

Read more below.

2023

2022

2021

2020

2019

2018 

One of the recommendations from The Corporate Governance Committee is that a tax policy is drawn up and published. 

Danish Ship Finance follows the recommendation and has prepared the following tax policy (in danish).

Remuneration report

Danish Ship Finance has defined a remuneration report.

2024

2023

2022

2021

2020

Remuneration policies

Danish Ship Finance has defined a remuneration policy. The purpose is to determine the guidelines for Danish Ship Finance’s remuneration of:

  • The Board of Directors
  • The Management Board
  • Employees whose activities have a material impact on the company’s risk profile
  • Employees in special functions
  • Other staff

The remuneration policy is established to ensure that the company’s remuneration of management and employees, whose activities have a material impact on the company’s risk profile, does not lead to excessively risk-tolerant behaviour. In addition, the remuneration policy reflects that the interests of the shareholders and the company have been realigned with the company’s circumstances, and it seeks to create a balance between the assignments and the responsibility undertaken. Read the latest Remuneration Reports below.

2023

2022

2021

2020

2019

2018 (in Danish)

2017 (in Danish)

Who are we
Danish Ship Finance provides ship financing to shipowners.

Contact information:
Danish Ship Finance A/S
Sankt Annæ Plads 3
1250 Copenhagen C
E-mail: danmarks@skibskredit.dk
Phone: +45 33 33 93 33

Purpose
Danish Ship Finance collects and processes personal data for the purpose of distributing newsletters and by using cookies.

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Personal data will never be passed on or sold, but they will be processed by our data processors. We have entered into data processing agreements.

Your rights
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Complaints
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In June 2022, the Danish FSA inspected Danish Ship Finance A/S (Danmarks Skibskredit A/S).

The purpose of the inspection was a review of the area of Danish covered bonds (SDOs), including the capital center structure, compliance with the balance principle, and the ongoing monitoring of the security framework.

The FSA reviewed the company’s relevant policies, business procedures, and reporting in the area of SDOs.

The report on inspection of Danish Ship Finance

In October 2020, the Danish FSA conducted an inspection at Danish Ship Finance A/S (Danmarks Skibskredit A/S). 

The inspection covered the credit area. In addition, the company’s relevant policies, business, procedures, and reporting were reviewed. 

The inspection resulted in the issuance of one order by the Danish FSA.

Danish Ship Finance consistently uses the contractual residual maturity of exposures, whereas it should calculate the lifetime-PD in accordance with the Executive Order on Accounting. The company can only do this when its experience with comparable exposures makes it possible and acceptable. Danish Ship Finance has been ordered to rectify this.

The report on inspection of Danish Ship Finance 

In September 2018, the Danish FSA conducted an inspection at Danish Ship Finance A/S (Danmarks Skibskredit A/S). 

The inspection covered the areas of the company’s management, securities, funding and liquidity, IT, group matters, outsourcing, and operational risks.

The inspection resulted in the issuance of one order by the Danish FSA.

Danish Ship Finance was ordered by the FSA to assess the extent to which the credit spread risk should be covered in the determination of the internal capital adequacy requirement. Danish Ship Finance complied with the order and added DKK 365 million to the internal capital adequacy requirement on September 30, 2018.

The report on inspection of Danish Ship Finance

In September and October 2016, the Danish FSA conducted a credit review at Danish Ship Finance A/S (Danmarks Skibskredit A/S).

The FSA reviewed the company’s credit policy, business procedures, and reporting in the area. Moreover, the FSA reviewed 25 loan exposures in total. The FSA further reviewed the rules of procedure of the Board of Directors and the written guidelines of the Executive Board with a particular focus on the credit area.

The report on the inspection of the credit area

In June 2015, the Danish FSA conducted an inspection (functional examination) of Danish Ship Finance A/S (Danmarks Skibskredit A/S).

The inspection covered a range of selected areas, including the company’s organisation and management, credit area, securities trading and funding, audit, risk management function, compliance function, capital adequacy, solvency and liquidity statements as well as IT security.  

All other content of the statement has been noted.  

The report on inspection of Danish Ship Finance

Danish Ship Finance is governed by the act on a ship finance institute. The act includes the legislative basis for the conversion in 2005. The company is also governed by the executive order on a ship finance institute.

According to the executive order on a ship finance institute the company, in its capacity of issuer of bonds on NASDAQ Copenhagen, is also subject to parts of the Executive Order on the Issuance of Bonds by Mortgage Credit Institutions, the Balance Principle, Interest Rate and Exchange Rate Risks.

Furthermore, the company is via the executive order on a ship finance institute subject to parts of the Danish Financial Business Act, which is the common set of rules governing banks, mortgage credit institutions and insurance companies, etc. in Denmark. The company is subject to the provisions of this Act with respect to good practice, ownership and management, capital structure of financial enterprises, annual report, audit and appropriation of profit for the year, intervention in or cessation of the financial enterprise and penalties.

Danish Ship Finance is exempt from the EU credit institution directives. In practice, this means that, unlike other Danish banks and mortgage credit institutions, the company is not subject to a limitation in respect of large customers. Instead, the company is under an obligation to determine rules on risk diversification, including risks associated with lending. The diversification rules are described in the annual report.

In addition to the rules stipulated by the authorities, the company is governed by the articles of association of Danish Ship Finance, which comply with the provisions of the Danish Companies Act. The company’s in-house activities are also governed by a set of policies that may be more restrictive than the external regulation. These policies have been adopted by the Board of Directors.

Articles of Association

Consolidation Act on  a Ship Finance Institute 

Executive Order on a Ship Finance Institute 

Executive Order on Bond Issuance (Danish)

Executive Order on Valuation (Danish)

Articles of association (Danish)