Subsection 2: Articles of association

Mutual guarantee companies are commercial companies.

The Articles of Association determine the registered office and mode of administration of the company, the conditions necessary for the amendment of these Articles of Association and the dissolution of the company, the composition of the capital and the proportion in which each member contributes to its constitution. They regulate the extent and conditions of each member’s liability for the company’s commitments. The Articles of Association reserve the right of…

The Articles of Association provide that the Board of Directors shall determine for each member the maximum amount of guarantees that may be granted and shall limit the period for which such guarantees are given. They expressly stipulate that the Board of Directors may refuse to grant the guarantee requested, or may grant it only subject to the guarantees it deems appropriate.