Questions

Port boards in municipal autonomous ports

Responsibilities and powers of the local council 

  • The self-government port is an independent company managed by the municipal council of the municipality in question, section 9(1) of the Port Act.
  • The municipal council thus has overall responsibility for the port.
  • The municipal council elects the port board.
  • In exercising their powers, the municipal council and the port board must safeguard the interests of the port, section 9(4) of the Port Act.
  • The municipal council must, on the recommendation of the port board, approve the board statutes for the port, accounts, decision on raising loans, employment and dismissal of the port manager.
  • The municipal council can introduce a veto right in the articles of association so that major transactions - such as the purchase and sale of land - require the municipality's prior approval.
  • The municipal council can adopt an ownership strategy for its ownership of the port.

Responsibilities and powers of the port board 

  • The management of the port is handled by the port board.
  • The port board is responsible to the municipal council for the operation and maintenance of the port, section 9(4) of the Port Act , and must ensure the overall and strategic operation and organization of the port's activities.
  • The municipal council sets the overall financial framework for the port's operations, and the port board independently manages the port's construction and operating funds within the established framework.
  • The port must be operated so that its income at least covers its expenses.
  • The port board recommends for approval by the municipal council decisions on the employment and dismissal of the port director (the port manager).
  • The director (port manager) handles the daily management of the port.
  • Remuneration regulated by the municipal wage board.
  • The Director must follow the guidelines and instructions of the Port Board.
  • The port's daily administration is organized so that it is separate from the municipality's administration.
  • The port's funds must be accounted for separately from the municipality's.
  • Decisions in relation to renting space at the commercial port and lease contracts lie with the port itself and not with the municipal council.
  • The municipal council member is generally not disqualified neither in general nor specifically in relation to board work in a municipal self-government port, cf. section 3(1)(3) of the Public Administration Act.
    • However, in 5 typical cases, disqualification will generally be ruled.
  1. The municipal council must decide on the individual's performance of his or her board duties,
  2. The municipal council must determine the remuneration of the company's board of directors
  3. The municipal council exercises supervision or control activities in relation to the company.
  4. There may be doubt as to whether the municipal council's handling of the case will only safeguard objective, public interests or
  5. The municipal council and the company enter into private law contracts.
  • Disqualification will generally occur in the municipal council.