driftsformål

Driftsformål is a Danish term used in corporate governance to describe the scope of activities a legal entity is established to conduct. It is usually stated in the company’s vedtægter (articles of association) and defines what the company is authorized to do in its day-to-day operations.

The driftsformål serves as the mandate for the company’s activities. A broad form may allow a wide range of related business activities, while a narrow form restricts operations to specific industries or functions. The precise wording can influence decisions by the board, the ability to enter contracts, and the need for additional approvals or licenses. Acts outside the stated driftsformål can be challenged as ultra vires under Danish company law, depending on the governance documents and applicable rules.

Changes to the driftsformål, including expansions or narrowing of the scope, typically require an amendment to the vedtægter and registration with the Danish Business Authority (Erhvervsstyrelsen). This process ensures that the company’s legal status and public records reflect its actual operations.

In practice, the driftsformål is an important reference for stakeholders, lenders, and partners when assessing the company’s activities and risk profile. It is distinct from the general purpose or mission of a non-profit entity, where the term formål may be used instead of driftsformål.

Examples of formulering include: “to engage in the development, production, and sale of software and related services” or “to operate within the construction and related consulting sectors.”