In its lawsuit, the municipality of Kihniö demands that the district court rationalize the redemption price in the redemption clause in Section 13 of Koillis-Satakunnan Sähkö Oy's articles of association by applying Section 36 of the Act on Legal Transactions in Property Law (Judicial Transactions Act).

According to Section 36 of the Legal Transactions Act, a term of a legal transaction may be arbitrated if it is unreasonable or its application would result in unreasonableness. A commitment regarding the amount of consideration is also considered to be such a term. When assessing unreasonableness, the content of the legal transaction as a whole, the status of the parties, the circumstances prevailing at the time of and after the legal transaction, and other factors must be taken into account.

Case law (KKO 1990:171 and KKO 1999:42) has held that the articles of association can be amended pursuant to Section 36 of the Legal Transactions Act.

Koillis-Satakunnan Sähkö Oy is an electricity company serving the municipalities and their residents and businesses in its area of ​​operation. According to the company's original articles of association (V2), the company has operated on a non-profit basis. The current articles of association (V1) are from 2008 and no longer contain any mention of operating on a non-profit basis. The articles of association do not contain any other provisions regarding the purpose of the company's operations, so the purpose of its operations can be considered to be in accordance with Chapter 1, Section 5 of the Limited Liability Companies Act, i.e. to generate profit for its owners.

The plaintiff, i.e. the municipality of Kihniö, has considered that changing the purpose of the company's operations has changed the balance and relationship between the company's operations and the redemption clause in Section 13 of the articles of association, so that the originally reasonable price specification of the redemption clause has become unreasonable.

Although the Articles of Association have been amended several times, the provision regarding the redemption price of the redemption clause has not been substantially changed. According to Section 10 of the original Articles of Association, the price of shares when transferring shares may not exceed the nominal value. According to Section 13 of the current Articles of Association, the price of shares when transferring shares may not exceed the tax value of the shares.

The tax administration has abandoned the determination of tax values ​​for shares, and tax values ​​have been replaced by benchmark values. Valuation is based on the benchmark value of shares as referred to in the Valuation Act. The benchmark value of an unlisted limited liability company corresponds to the previous tax value.

The municipality of Kihniö has commissioned BDO Oy to carry out a valuation of the value of the shares of Koillis-Satakunnan Sähkö Oy (K3). Based on this valuation, the fair value of the share can be calculated, which, based on BDO Oy's valuation, is significantly higher than the benchmark value corresponding to the tax value. Professor Jukka Mähönen has stated in his statement that the difference between the fair value and the redemption price is significant, without taking a position on how significant. Professor Seppo Villa has considered in his own statement that the difference between the fair price of the share and the benchmark value of the share is significantly large, more than 14 times.

In summary, the District Court states that factors in favour of mediation pursuant to Section 36 of the Legal Act have been demonstrated in the case, on the basis of which mediation could be possible in an individual case. However, Chapter 5, Section 30 of the Limited Liability Companies Act provides that the sole authority to amend the articles of association lies with the general meeting. The District Court cannot therefore amend the provision concerning the redemption price in the redemption clause of the articles of association of Koillis-Satakunnan Sähkö Oy pursuant to Section 36 of the Legal Act. On this basis, the action must be dismissed.

The municipality of Kihniö is ordered to compensate the city of Virtai for legal costs of 36.280,50 euros (VAT 0%) including late payment interest in accordance with Section 4, Paragraph 1 of the Interest Act, starting from 20 October 2023.

The municipality of Kihniö is ordered to compensate Koillis-Satakunnan Sähkö Oy's legal costs of 17.300 euros (VAT 0%) including late payment interest in accordance with Section 4, Paragraph 1 of the Interest Act from 20 October 2023.

We will hear from OTT Ari Huhtamäki via teams.

During the past year, the municipality of Kihniö has deepened its cooperation with the Finnish Red Cross Kihniö-Parkano branch and has become familiar with the opportunities that the Finnish Red Cross Kihniö-Parkano branch can offer for preparedness work. The municipality is striving to better take third sector actors into account in preparedness matters, and the Finnish Red Cross/Vapepa is a very important partner in our area.

The preparedness manager of the municipality of Kihniö and the chairman of the Kihniö-Parkano department of the Finnish Red Cross have jointly prepared an agreement that defines the roles of the municipality of Kihniö and the Finnish Red Cross in preparedness and assistance. The cooperation agreement defines the purpose of the cooperation, management responsibilities, tasks, communication, operational readiness, responsibilities and obligations, information, boundaries, confidentiality, insurance, damages, compensation for the expenses of those being assisted, validity and reporting. The municipality of Kihniö aims to engage the third sector with the agreements and clarify cooperation with third parties in preparedness and assistance tasks.

Attached is a draft agreement.

Lauhanvuori-Hämeenkangas Geopark Association has nine member municipalities: Isojoki, Kankaanpää, Jämijärvi, Parkano, Karvia, Siikainen, Karijoki, Kauhajoki and Kihniö. The municipalities are located in three provinces.

The operations of Lauhanvuori - Hämeenkangas Geopark Association are based on annual basic funding paid by the municipalities. The basic funding is used for personnel costs and expenses, financial management, communications and, to a small extent, marketing. In addition, the basic funding is used as self-financing shares for projects.

The basic funding paid by the municipalities is €119,000 per year, and it is distributed among the municipalities as follows:

Lauhanvuori - Hämeenkangas Geopark basic funding 2022

Kauhajoki 26,500

Isojoki 9,500

Karijoki 6,500

Kankaanpaa 26,500

Lake Jämijärvi 8,500

Gooseberries 10,500

Whitefish 6,500

Parkano 16,000

Kihniö 8,500

A total of 119

In addition, Metsähallitus pays a membership fee of 5,500 euros per year. Membership fees from companies, associations and individual members total approximately
EUR 10,000. The funding decisions made during the association's founding phase and the temporary funding decisions made after the merger of Kankaanpää and Honkajoki municipalities are coming to an end, and the municipalities are now being asked to make a new agreement on Geopark cooperation.

The Geopark's focus areas for the upcoming evaluation period 2024-2027 are:

- Increasing the visibility of the region and enhancing marketing domestically and internationally

- Strengthening the regional economy through the promotion of sustainable tourism, sustainable development and sustainable business

Developing tourism broadly with special themes, e.g. cycling, wellness and food tourism, and further developing nature tourism infrastructure

- Environmental education

- Inventory of the area from a geological, natural and cultural perspective in cooperation with universities and research institutes

Lauhanvuori-Hämeenkangas Geopark Association proposes to conclude an agreement on Geopark cooperation, according to which the municipalities commit to reserve annual basic funding for the time being, but at least for the evaluation period (four years). The termination term of the agreement would be 12 months and the notice of termination should be made by the end of the previous year. Basic funding would be kept at the same level. Projects would be carried out in cooperation with different actors and within the limits of resources.

Appendix 2 shows the activities so far.

The Act (616/2021) on the implementation of the reform of social and health care and rescue services and the entry into force of the relevant legislation stipulates that customer and patient documents and related administrative documents created in activities under the responsibility of the municipality, customer and patient documents transferred from private service providers under the control of the municipality, curator documents created in student care organized by the municipality's educational services, and documents of the municipality's rescue services shall be transferred to the competent authority responsible for organizing social and health care or rescue services in the welfare area to which the municipality belongs. The transfer only applies to documents related to social and health care tasks transferred to the welfare area that have not been archived.

The transfer of data will be carried out on the basis of Section 64 of the aforementioned Act and in addition, the Finnish Institute for Health and Welfare's instructions for the transfer of data in welfare areas will be followed, unless otherwise agreed in the attached agreement and its annexes. Annex 1 to the agreement, Analog archives list, which also lists all data to be transferred and included in joint management.

The agreement stipulates the data transferred to the welfare area and remaining under the joint management of the contracting parties, the retention, usability and destruction of the data, data protection regarding the data subject to the agreement, and the information service.

According to Section 21 of the Administrative Code, the municipal government decides on the approval of the agreement.

Appendix 3 Agreement on the transfer of data to the welfare area

Annex 1 to the Agreement Analogue Archives List (Secret Article 24.1, Section 7 of the Public Records Act)

The mayor presents and provides information on current issues and events that are pending and in preparation.

According to Section 39 of the Local Government Act, the municipal government is responsible for, among other things, the preparation, implementation and supervision of the legality of the council's decisions. If the municipal government considers that the council's decision has been made in an incorrect order or that the council has exceeded its authority or that the decision is otherwise unlawful, the municipal government must not implement the decision. In such a case, the matter must be brought before the municipal council again without delay. (Section 96 of the Local Government Act).

The following matters were discussed at the Municipal Council meeting on December 8, 2025:

§ 18 Legality and quorum of the meeting

§ 19 Selection of the minutes inspectors

§ 20 Interim report on financial performance as of 30 June 2023

§ 21 Updating the administrative rules

§ 22 Statements on the observations of the inspection board in the evaluation report

§ 23 Appropriation changes to the 2023 budget

§ 24 Other matters

The mayor presents the financial situation at the meeting.

Attached is the result.

According to Section 1 of the Pre-emption Act (5.8.1977/608), a municipality has a right of pre-emption in the sale of real estate located in the municipality in order to acquire land for community development and for recreational and conservation purposes. The right of pre-emption means the municipality's right to redeem the sold real estate for the purchase price agreed upon by the seller and the buyer. When using the pre-emption, the municipality takes the place of the buyer and acquires ownership of the area that is the subject of the sale under the terms of the deed of sale.

The municipality must also compensate the buyer for direct costs related to the transaction and pay interest on the costs in accordance with Section 3, Subsection 2 of the Interest Act (633/1982). According to Section 21 of the Pre-emption Act, the city government decides on the exercise of the pre-emption right. The decision must be made and the registration authority, i.e. the Land Survey, notified of it within three months of the certification of the transfer deed.

The decision must be given without delay as a demonstrable notification to the buyer and seller.

Attached material: property transfer list

Real estate transfer notices:

5 property transfer notices

According to Section 27 of the Act on the State Subsidy for Basic Municipal Services, a municipality's state subsidy may be increased upon application at its discretion within the limits of the state budget if the municipality is in need of increased financial support, primarily due to exceptional or temporary municipal financial difficulties.

Its assessment also takes into account local specific circumstances. The condition for granting an increase in the state share is that the municipality has approved measures to be implemented to balance its finances. The measures, with their timetable and their effects in euros, must be presented in the application for an increase in the state share. If the measures have not been decided on by the end of the application period, the application must state when the council will consider them and what the measures are. The state aid authority may also set other conditions related to the municipality's finances for the granting and use of the increase.

The increase in the state share may not be granted in subsequent years or may be granted at a reduced rate if the proposed measures or the set conditions have not been complied with. Another condition for granting the grant is that the municipality implements the measures proposed by the assessment group pursuant to Section 118 of the Local Government Act to ensure the provision of services. The above condition applies to those municipalities for which an assessment group pursuant to Section 118 of the aforementioned Act has been established.

A maximum of EUR 10,000,000 is available for an increase in the discretionary government transfer. According to Section 45(2) of the Act on the Government Transfer of Basic Municipal Services, an application for an increase must be submitted by a date decided by the Ministry of Finance.

Applications must be submitted by Tuesday, October 17, 2023 at 4:15 PM.

to the email address kirjaamo.vm@gov.fi or at:

Treasury

PL 28

00023 COUNCIL OF STATE

Decisions of municipal office holders:

Municipal Mayor §

Director of Finance and Administration § 35, 38

Financial Manager § -

Minutes of committees and chambers:

Technical Committee 6.9.2023

§ 50 Legality and quorum of the meeting

§ 51 Selection of the minutes inspectors

§ 52 Mänterä Energy Park; draft plan

§ 53 Request for opinion on the environmental impact assessment program for the Vermassalo wind farm

§ 54 Application for derogation

§ 55 Interim financial report 1 January - 30 June 2024

§ 56 Financial performance 1.1 - 31 March 2024

§ 57 Investments for 2024

§ 58 Technical action objectives according to the municipal strategy for 2024

§ 59 Current affairs

§ 60 Statement to the municipal government on the audit committee's observations in the evaluation report

§ 61 Update of the Administrative Code

§ 62 Competitive tendering of insurance policies in the municipality of Kihniö

Education Committee 13.9.2023

§ 66 Legality and quorum of the meeting

§ 67 Selection of the minutes inspectors

§ 68 Physical education counselor service chain and process description

§ 69 Approval of Kihniö Comprehensive School's school transport arrangements for the 2023-2024 academic year

§ 70 Selection of special themes and measures for 2024

§ 71 Results of the well-being survey

§ 72 Decisions of office holders

§ 73 Notification and other matters

Audit Committee April 25.9.2023, XNUMX

Youth Council 15.9.2023

1. Pirkanmaa ELY: Employment review August, Kihniö unemployment rate 6,3%.

2. Education Board PK excerpt: Physical education advice service chain and process