The Housing Companies Act: what every shareholder should know

The Limited Liability Housing Companies Act is not just for the board and the property manager. For every shareholder, it settles who decides on shared matters, who repairs what and on what terms you may renovate your own apartment. You do not need to know the Act by heart, but once you are familiar with its main principles, the general meeting agenda and the board’s decisions become much easier to follow.

What the Act is and where to find it

The Limited Liability Housing Companies Act (asunto-osakeyhtiölaki, 1599/2009) came into force on 1 July 2010. It sets out how a housing company is governed, how decisions are made, and the rights and obligations of the company, the board, the property manager and the shareholders. The up-to-date text of the Act is available free of charge on Finlex (opens in a new tab) (in Finnish).

Parts of the Act are non-mandatory: the articles of association can provide otherwise, for example on how maintenance responsibility is divided. That is why it is worth reading your own company’s articles of association alongside the Act.

Three principles that underpin the whole Act

• Equal treatment (chapter 1, section 10). All shares carry equal rights unless the articles of association provide otherwise. A decision must not give anyone an undue advantage at the expense of the company or another shareholder.
• Due care by management (chapter 1, section 11). The board and the property manager must act with due care to promote the company’s interests.
• Majority rule (chapter 1, section 9). Shareholders exercise their decision-making power at the general meeting, and decisions are generally made by majority.

Who decides what

The general meeting is the company’s highest decision-making body. The annual general meeting adopts the financial statements, decides on discharge from liability and elects the board. The general meeting also decides on major renovation projects and other matters that substantially affect living in the building or the charges. Read more about the general meeting.

The board does not repair the building itself; it makes sure that property maintenance is organised and that decisions are prepared on the basis of sufficient information (chapter 7, section 2). This role is explained in more detail in the article the duties of a housing company board. The property manager handles day-to-day administration according to the board’s instructions.

At the annual general meeting, the board must present a written report on maintenance needs for the next five years, together with a report on significant maintenance and alteration work carried out (chapter 6, section 3). For a shareholder, this is the most important official overview of the repairs coming up in the next few years. See the maintenance needs report.

Maintenance responsibility: company and shareholder

The basic rule is clear. The company is responsible for the structures, insulation and building systems, such as the heating, water, drainage, electrical and ventilation systems (chapter 4, section 2). The shareholder is responsible for the interior of their apartment and must look after it with care (chapter 4, section 3).

A shareholder must notify the company without delay of any defect they find in the apartment that the company is responsible for repairing (chapter 4, section 8). Alteration work, such as a bathroom renovation, must be notified to the company in writing in advance (chapter 5, section 2). The Finnish Real Estate Federation (Kiinteistöliitto) publishes a division of responsibilities table that helps draw the line in practice; read more in the article division of responsibilities in a housing company.

What changed on 1 October 2026

Amendments to the Limited Liability Housing Companies Act (government proposal HE 34/2026) came into force on 1 October 2026. The changes that matter most in everyday life are:

• Windows. The company is responsible for the window and its structure as a whole at a basic functional and technical level: the outer and inner windows and panes, sashes including inner sashes, frames, seals, fittings, ventilation hatches and fixed insect screens that form part of the window structure. This is a presumptive rule: the articles of association can provide otherwise, and existing maintenance provisions in the articles remain in force. See the change in responsibility for windows.
• The shareholder’s duty of care and duty to report defects were extended. They now also cover company spaces and areas that the shareholder uses where the right of possession is not based on the articles of association or a lease, for example the yard area in front of the apartment or a storage space made available to the shareholder. The shareholder has no maintenance responsibility for these spaces.
• Alteration work. The shareholder is responsible for maintaining the alterations they have made and for any additional maintenance costs these cause.
• Other changes. It is now easier to address nuisance caused by short-term letting, warnings and decisions to take an apartment into the company’s possession can be served electronically, a shareholder is entitled to receive promptly a copy of any document held by the company that concerns their apartment, and a bankruptcy petition is, as a rule, decided by the general meeting.

Liability of the board and the shareholder

A board member may have to compensate damage they have caused in breach of the duty of care, or by violating the Act or the articles of association intentionally or through negligence (chapter 24, section 1). Liability is not automatic; what matters is how the decision was prepared. Read more: the responsibilities of a board member.

Shareholders have their own role too. They elect the board, decide on major renovations at the general meeting and can ask questions before a vote. Reading the meeting documents is part of being a responsible owner.

Frequently asked questions

Who does the Act apply to?

It applies to all housing companies, along with their shareholders, board, property manager and general meeting. A tenant’s position is also governed by the Act on Residential Leases (laki asuinhuoneiston vuokrauksesta).

Can the articles of association depart from the Act?

In many respects, yes, for example in how maintenance responsibility is divided. However, the principle of equal treatment and many of the provisions that protect shareholders cannot be freely departed from.

Does the Act require the building to be inspected at set intervals?

Not directly. It does, however, require the board to organise property maintenance properly and to assess future repair needs every year, which is difficult without up-to-date information on the building’s condition. The Finnish Real Estate Federation (Kiinteistöliitto) and the Finnish Association of Property Managers (Isännöintiliitto) also publish practical guidance on applying the Act.

This article provides general information and does not replace case-specific legal or technical advice.