Ericsson AB shareholders used Tuesday’s annual common assembly to air their discontent on the firm’s dealing with of a probe into corruption in Iraq.
The Swedish telecommunications tools maker has been below strain in current weeks after it disclosed that an inside investigation had discovered proof of historic corruption in Iraq, together with the corporate being unable to find out if sure funds within the nation fell into the fingers of terrorist organizations.
Shares have misplaced round 1 / 4 of their worth because the revelations and the disclosure has additionally led to criticism from the U.S. Justice Division, which knowledgeable the corporate that its disclosure of the Iraq probe previous to getting into a deal over earlier bribery and accounting violations was inadequate.
At Tuesday’s assembly, shareholders representing a minimum of 10% of Ericsson shares voted in opposition to discharging the board and president from legal responsibility for the 2021 monetary yr, opening Chief Govt Officer Borje Ekholm and the remainder of the board to probably be held personally liable for his or her actions.
Beneath Swedish legislation, if a minimum of 10% of shareholders vote in opposition to discharging the board from legal responsibility with respect to their administration, they are often sued by the corporate and its buyers.
Shareholders did, nonetheless, approve the board’s re-election and remuneration.
Talking after the assembly, CEO Ekholm mentioned he understood the considerations raised by shareholders and mentioned he was dedicated to proceed main Ericsson within the transformation of the corporate and its ethics.
“Borje and the manager workforce have the total help of the board. We have now made good progress however there’s a lot nonetheless to do,” Chairman Ronnie Leten mentioned.
“Throughout 5 years on the helm, Borje has led the give attention to ethics and compliance and executed the efficiency turnaround of Ericsson,” Mr. Leten mentioned.
This story has been revealed from a wire company feed with out modifications to the textual content
Supply: Live Mint