Ericsson’s major shareholders have announced that they will vote against discharging the board members of liability.
This implies that some board members will be held accountable over an issue that borders on the possible payment of bribes to militant organizations in Iraq.
Shareholders planning to vote against the proposed law include Cevian Capital (less than 5% of the shares in Ericsson), Norway’s wealth fund (1.9%), Swedbank Robur (3.9%), Nordea Funds (1.1%), Lansforsakringar Fondforvaltning (0.3%), and Avanza Fonder (less than 1%).
Since shareholders have almost reached the 10% threshold, they are likely to get the right to sue board members in the future under Swedish company law.
Swedish company law allows a company or shareholder to sue board members or the CEO of a group representing at least a 10% stake in the company votes against ratifying acts of the CEO in the past year.
Investor AB, Ericsson’s largest shareholder backed by the Wallenberg family plan to vote in favor of the discharge of liabilities. The group expressed full confidence in Ericsson’s board and CEO.
For more information, read the original story in Reuters.