Corporate Governance

investor relations
Good corporate governance is a question of ensuring that companies are run as efficiently as possible on behalf of their shareholders. The confidence of existing and potential shareholders that such is the case is crucial to their interest in investing in companies, thus securing corporate Sweden’s supply of risk capital. The aim of the Swedish Corporate Governance Code is to improve confidence in Swedish listed companies by promoting positive development of corporate governance in these companies. The Code acts as a complement to legislation and other regulations by specifying a norm for good corporate governance at a higher level of ambition than the statutory regulation. However, this norm is not mandatory. Companies may deviate from individual rules, providing they report each deviation, describe their own solution, and explain why. In this way, the actors in the market can form their own opinions on the solution the company has chosen. Another aim of the Code is to provide an alternative to legislation. The Swedish Corporate Governance Board feels that self-regulation is often preferable to legislation and sees the Code as the primary instrument for this.

As of 1 July 2008, The Swedish Corporate Governance Code is applicable to all Swedish companies whose shares are traded on a regulated market in Sweden. Today, Swedish corporate governance has much in common with how corporate governance has developed internationally in recent decades. At the same time, it differs in certain significant areas, both from the Anglo-Saxon one-tier model and the two-tier model which is found in much of continental Europe. The differences include matters concerning attitudes to the role of owners, the division of power and responsibilities between the different governance bodies, the formation of boards, and the role of the auditor. The Swedish Corporate Governance Board sees the building of greater knowledge and understanding of Swedish corporate governance, not least on the international capital markets, as one of its key assignments. The Swedish Corporate Governance Code therefore contains a general description of the Swedish model of corporate governance in its introduction.