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 ensure that Sweden has a relevant, modern and effective corporate governance code for listed companies. In addition, the Board is to promote good practice on the Swedish stock market through its responsibility for issues that until May 2010 were dealt with by the Swedish Industry and Commerce Stock Exchange Committee.
The work of the Board includes:
research and analysis of the practical application of the Board’s regulatory framework and recommendations
collection of feedback from corporate governance stakeholders as well as participation in the general debate
monitoring and influencing changes in legislation and other regulation to ensure it is positive for the development of Swedish corporate governance and good stock market practices
monitoring international developments in the theory and practice of corporate governance and evaluating the consequences for Swedish corporate governance and stock market practices
Based on the above, the Board is to issue instructions on the application of the rules of the Code, make amendments to the rules that it considers appropriate and communicate and explain these to the relevant stakeholders.
The Board is a referral body on legislative issues within its area of responsibility and also strives to increase international awareness and understanding of Swedish corporate governance and generally accepted stock market practices.
Within the framework of Swedish self-regulation, the Board is to issue principles-based and well-functioning rules for corporate governance and generally accepted principles in the stock market, which contribute to maintaining high confidence in the Swedish stock market and listed companies among market actors, legislators and the public, both in Sweden and internationally. By setting a norm for good corporate governance at a higher level of ambition, the Code and the Board’s other rules and recommendations are to be a complement and provide alternatives to legislation.
Our business concept
Good corporate governance and generally accepted principles in the stock market provide order, openness and transparency, as well as increasing the attractiveness and confidence among Swedish and international investors and the Swedish public regarding the stock market and listed companies. This is essential in order for the Swedish corporate sector to be able to create value in a flexible and efficient manner, which is a prerequisite for the dynamics and international competitiveness of Swedish business, and thus for the prosperity of the Swedish economy.
A set of norms but no obligation
In brief, the mission of the Board is to provide norms for corporate governance in Swedish listed companies and for generally accepted principles in the Swedish stock market.
The Board does not have a supervisory or adjudicatory role with regard to how individual companies apply the Board’s rules and recommendations. 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 from an investor perspective.