Although Stockholm Stock Exchange believes that the code should ultimately apply to all companies that are listed on the Exchange, it proposes that the introduction occur in stages, to give the smaller companies time to adapt. After a few years, when experience of the practical application of the code has been gained, it should apply to all listed companies. The Stockholm Stock Exchange believes that an earlier voluntary compliance by the companies not covered by the first round of changes to the rules and regulations will strengthen these companies confidence in the market.
It is estimated that an update of the Exchange Rules, including transitional regulations about how adjustment to the code should be implemented, will take effect on July 1, 2005. The detailed transitional regulations and a specification of the companies that will be covered by them will be decided after negotiations with the Swedish Association of Exchange Listed Companies.
“The code will result in an improved and more transparent governance of Swedish companies, thereby strengthening the competitiveness of Swedish industry and increasing the public’s confidence in the Swedish capital market and industry at large. We therefore welcome a Swedish code of corporate governance,” said Henrik Paulsson, Deputy President of Stockholm Stock Exchange.
The aim of the code is to enhance knowledge of and confidence in the governance of Swedish companies in the international capital market and thus to promote Swedish companies’ access to foreign capital. The Code group has been sensitive to the comments from different stakeholders and has adapted the code in many areas. The prospects of the code being accepted broadly by shareholders and companies are favorable, which is a prerequisite for any type of self-regulation.
To read the Code of Corporate Governance in its entirety, please visit www.sou.gov.se.
