On 1 June 2012, Finland’s Act on the Screening of Foreign Corporate Acquisitions came  into  force.  The  Act  establishes  a  new  cross-sectoral  review  mechanism  designed  to secure national defense and to safeguard public order and security. The mechanism gives the government the authority to block an acquisition by a foreign – i.e. non-EU and non-EFTA – entity  of  a  domestic  business  if  the  government  believes  that  such  an  acquisition  poses threats of “severe damage” to the “fundamental interests” of society.
In the defence and dual-use products sector, screening applies to all foreign acquirers (including those from within the EU and EFTA) and advance confirmation by the public authorities is required. In the civil sector, monitoring is targeted at Finnish enterprises considered critical to securing vital functions within society. First threshold of screening is when a foreign owner gains control of at least 10% of the aggregate number of votes conferred by all shares in the company, or a corresponding actual influence.
"Section 1 - Objectives of the Act:
The objective of this Act is to screen, and, should a key national interest so require, restrict the transfer, to foreigners and foreign organisations and foundations, of influence over companies subject to screening.
Section 2 - Definitions:
For the purposes of this Act,
1) a key national interest means securing national defence or safeguarding public order and security in accordance with Articles 52 and 65 of the Treaty on the Functioning of the European Union, should the fundamental interests of society be under actual and adequately serious threat;
2) entity subject to screening means a defence industry company and any other such organisation and business undertaking considered critical in terms of securing functions fundamental to society on the basis of its field, business or commitments;
3) foreign owner means
a) any foreigner not domiciled in a European Union (EU) or European Free Trade Association (EFTA) member state;
b) any organisation or foundation not domiciled within EU or EFTA member states;
c) any organisation or foundation domiciled within EU or EFTA member states in which a foreigner referred to in subparagraph a), or an organisation or foundation referred to in subparagraph b), controls at least one tenth of the aggregate number of votes conferred by all shares in a limited liability company, or has a corresponding actual influence over another organisation or business undertaking;
4) defence industry enterprise means an organisation or business undertaking that produces or supplies defence equipment or other services or goods important to military defence; defence industry enterprise also means an organisation or business undertaking that, in Finland, produces dual-use goods referred to in the Act on the Control of Exports of Dual-Use Goods (562/1996);
5) corporate acquisition means an acquisition or other corresponding measure due to which a foreign owner gains ownership of a number of shares referred to in subsection 2 in an entity subject to screening; a corporate acquisition also means an organisation other than one referred to in paragraph 3 becoming a foreign owner as referred to in paragraph 3, if it has the influence referred to in subsection 2 over a company subject to screening.
An application referred to in this act must be submitted concerning a corporate acquisition involving a defence industry company, and a notification referred to in this act may be submitted concerning a corporate acquisition involving another company subject to screening, when a buyer referred to in subsection 1(3) gains at least one tenth, at least one third or at least one half of the total number of votes conferred by all shares in the company or corresponding actual influence over a public limited company or other company subject to screening. For a particular reason, the authority processing the matter may also oblige the buyer to submit an application or a notification concerning a measure that increases their influence that does not result in exceeding these limits taken
after the processing of their application or notification has been completed.
Regarding enterprises in subsection 1(4), the provisions laid down in this Act on a foreign owner also apply to any natural person, organisation or foundation that is resident or domiciled in another EU member state, apart from Finland, or in an EFTA member state. The same applies to a Finnish organisation and foundation in which at least one tenth of the aggregate votes of all of a limited liability company’s shares, or corresponding actual influence over an organisation or business undertaking, lies with a natural person or organisation or foundation that is resident or domiciled in a EU member state apart from Finland, or in an EFTA member state. [...]" (Act on the Screening of Foreign Corporate Acquisitions (172/2012 -- subsequently amended), Sections 1 and 2 [unofficial translation])
Act on the Screening of Foreign Corporate Acquisitions (172/2012), Sections 1 and 2
[<a href="https://trade.ec.europa.eu/doclib/docs/2019/june/tradoc_157939.pdf">Act</a>]