Corporate governance deals with the management of companies with a view to meeting the owners’ required return on invested capital and it contributes to economic growth and efficiency.
The term describes the ways in which rights and responsibilities are distributed among the various corporate bodies according to the rules, processes or laws they are subject to. In practice, corporate governance defines the decision-making systems and structure through which owners directly or indirectly control a company.
The governance and control of LBi International is carried out through a number of corporate bodies. General meetings allow our shareholders to vote on various matters such as; the composition of the Board of Directors of LBi and election of external auditors. The Nomination Committee proposes candidates to serve as board members, chairman and external auditors. The board is responsible for LBi’s long-term development and strategy as well as controlling and evaluating the company’s daily operations. The board's rules of procedure describe the board's duties in greater detail. In addition, the board appoints the Chief Executive Officer (CEO). The duties of the board are partly exercised through its two Committees; the Audit, Finance and Remuneration Committees. The CEO is in charge of the day-to-day management of LBi in accordance with guidelines and instructions provided by the Board.
The Association of Stock Market Companies (Aktiemarknadsbolagens Förening) and the Stockholm Stock Exchange have agreed to incorporate the Swedish Code of Corporate Governance into the rules of the Stockholm Stock Exchange. As a result of the decision, the code will initially apply to all Swedish companies on the A-list, as well as to Swedish companies on the O-list with a market value of over SEK 3 billion date of balancing will occur yearly on May 31st. The market capitalization is based in part on the company's average market capitalization during the immediately preceding twelve month period – i.e. the period starting from June 1st of the preceding year through May 31st of the year during which the calculation is made – and in part on the company's market capitalization on May 31st of the year of calculation. As LBi has had a market value of under SEK 3 billion under the last year, LBi is under no obligation to adhere to the code. To the extent it is deemed suitable and reasonable, LBi will nevertheless, be influenced by the code
Corporate governance at LBi is based primarily on the Swedish Companies Act, the company’s listing agreement with the Stockholm Stock Exchange, and the recommendations issued by organizations such as the Swedish Industry and Commerce Stock Exchange Committee (NBK).
Related links:
Swedish corporate governance code (zip file)
The Swedish Financial Supervisory Authority (Finansinspektionen)
Authority Financial Markets (AFM)