The role of the Board
The role of the Swedish Corporate Governance Board is to promote the development of Swedish corporate governance. A key aspect of this mission is to continuously ensure that Sweden has a relevant, modern and effective corporate governance code for listed companies. In addition, the Board shall also promote sound practice on the Swedish stock market by taking responsibility for issues that previously, until May 2010, were dealt with by the Swedish Industry and Commerce Stock Exchange Committee.
The work of the Board includes:
- Compilation and analysis of experiences arising from the Code's practical application
- Collection of feedback from the companies that apply the Code and other key actors within the field of corporate governance, as well as participation in the general debate on corporate governance
- Monitoring and influencing changes in legislation and other rules issued in the field of corporate governance
- Monitoring developments in other countries, within relevant international organisations and bodies, as well as academic research on the subject, and evaluating the consequences for Swedish corporate governance;
Based on the above, amend of the Code when the Board considers this appropriate, and communication and explanation to the market of any changes.
To take responisiblity for the issues that were previously dealt with by the Swedish Industry and Commerce Stock Exchange Committee, includes, i.a.:
- Monitoring the develpment of stock market issues in Sweden and internationally, and
- When deemed necessary, issue rules in order to promote sound practice on the Swedish stock market.
A set of norms for corporate governance
The mission of the Board is therefore to provide norms for corporate governance of Swedish listed companies. The Board does not have a supervisory role when it comes to individual companies' application of the Code.
That is the responsibility of the respective stock exchanges on which the companies' shares are listed. It is then up to the actors on the capital markets to determine to what extent a company's application or non-application of Code rules is satisfactory in an investor perspective.
International awareness and understanding of Swedish corporate governance
As well as managing the Code, the Board promotes the positive development of Swedish corporate governance in a variety of ways, including communicating and building awareness and understanding of Swedish corporate governance internationally. The Board is also consulted on legislative issues within its area of responsibility.