STOCKHOLM (Reuters) – Activist investor Cevian Capital, considered one of Ericsson’s largest shareholders, stated on Monday it can vote against granting discharge to the corporate’s board members, in addition to its president, at the annual normal assembly (AGM) on Tuesday.
Ericsson has been below fireplace from the U.S. Justice Department and its shareholders for not correctly disclosing that its investigation in 2019 had confirmed the corporate might have paid militant organizations in Iraq.
“We nonetheless lack the data obligatory to make an knowledgeable judgment of what went incorrect, why, and who must be held accountable,” Cevian stated in an announcement. “Given the lack of knowledge and the magnitude of the injury, we’ve got no selection however to maintain the whole board accountable.”
Under Swedish Companies Act, the corporate or shareholders can carry motion against board members or the CEO if a bunch representing at least 10% shares of the corporate votes against ratifying acts of the CEO previously 12 months.
Cevian owns slightly below 5% shares in Ericsson.
If a board member or the CEO is granted discharge from legal responsibility at the AGM, the corporate or its shareholders is probably not in a position declare damages associated to the individual’s administration of the corporate through the monetary 12 months.
(Reporting by Supantha Mukherjee in Stockholm; enhancing by Niklas Pollard)
