STOCKHOLM, Sweden, April 7, 2005 (PRIMEZONE) -- On a press briefing today, the Swedish Association of Exchange Listed Companies and the Stockholm Stock Exchange will present the adaptation of the Swedish Code of Corporate Governance for the listed companies. The Swedish Association of Exchange Listed Companies and the Stockholm Stock Exchange have agreed to incorporate the Swedish Code of Corporate Governance into the Stockholm Stock Exchange's rules. The decision means that initially the code will apply to all Swedish companies on the A List and Swedish companies on the O List with a market capitalization exceeding SEK 3 billion. The affected companies should apply the code as soon as possible after July 1, 2005, and it must be fully implemented prior to the Annual General Meetings in 2006.
As a step in self-regulation, the Code of Corporate Governance shall be included as part of the Stockholm Stock Exchange's listing requirements, that is, the requirements that a company must fulfill to be listed at the Stockholm Stock Exchange. Foreign companies on the A List and O Lists shall apply the code applicable in their home country. If there is no code of corporate governance, the foreign companies shall apply to the Swedish code.
In the future, the code will cover all listed companies, but the smaller companies are being given time to adapt. After a few years when experience has been gained regarding the practical application of the code and any modifications have been made, the code should cover all companies listed on the exchange. Companies not covered by the code can decide to apply it voluntarily. An earlier adoption of the code by the smaller companies will strengthen these companies' confidence on the market.
"We believe that the code is a key element of the rules for the Swedish securities market. By incorporating the code in our rules, we have chosen to underscore the code's importance for the confidence in the companies listed at the Stockholm Stock Exchange and for the exchange as a marketplace. It is also in line with the Nordic harmonization efforts, since codes are in place in Finland and Denmark," says Jukka Ruuska, President of OMX Exchanges and the Stockholm Stock Exchange.
"The code is full of details and its implementation will be costly, however we feel that we have reached a good compromise by initially making the code applicable to the large companies and in such a manner gain experience prior to it becoming effective for all companies," says Anders Nyren, Chairman of the Swedish Association of Exchange Listed Companies, which represents the listed companies in discussions with the Stockholm Stock Exchange regarding the content of the Exchange's regulatory system.
Similar to most codes in other countries, the Swedish code is based on the principle "comply or explain." This means that a company can deviate from the code's provisions without this entailing a breach of the code. A company that intends to deviate from a regulation in the code must, however, explain why the deviation is being made.
This is the first time a unified code for corporate governance has been presented in Sweden. The code is based on the Swedish Companies Act and the tradition of self-regulation that prevails in Sweden, as a result of which Sweden is well advanced in this area in an international perspective. The Swedish Code of Corporate Governance was developed by a special work group, the so-called Code Group, with representatives from several bodies and organizations within the Swedish business community. The group also included representatives from the government's Commission on Business Confidence.
Press briefing in Stockholm today at 10.30 CET At 10.30 CET today, journalists are invited to a press briefing at which Anders Nyren and Jukka Ruuska will be available for brief interviews. The press briefing will take place at OMX in Stockholm at Tullvaktsvagen 15 (Frihamnen).
About OMX Exchanges
OMX is a leading partner for more efficient securities transactions. OMX consists of two divisions: OMX Technology and OMX Exchanges. Through the OMX Exchanges division, OMX owns and operates the equity and derivatives exchanges in Copenhagen, Stockholm, Helsinki, Tallinn, Riga and Vilnius as well as the central securities depositories in Estonia and Latvia. Through OMX Exchanges, OMX offers access to approximately 80 percent of the Nordic and Baltic Securities market. For more information please visit www.omxgroup.com.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://wpy.waymaker.net/client/waymaker1/WOLReleaseFile.aspx?id=85869&fn=wkr0019.pdf