Andra AP-fonden: Second Swedish National Pension Fund/AP2 Proposes Single Class of Shares in Husqvarna.STOCKHOLM Stockholm (stŏk`hôlm'), city (1995 pop. 692,954), capital of Sweden and of Stockholm co., E Sweden, situated where Lake Mälaren flows into the Baltic Sea. , Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. -- The Second Swedish National Pension Fund/AP2 is the third largest shareholder in Electrolux and has submitted its own proposal for consideration by the Annual General Meeting concerning a spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of Husqvarna. This means that shareholders in Electrolux will need to consider two alternative proposals concerning dividends paid by Husqvarna. On the one hand is the board of directors' proposal, which recommends that Husqvarna should have the same mix of A and B-class shares as Electrolux. On the other hand, AP2 proposes a single class of shares. AP2 is positive to the distribution of Husqvarna shares among all shareholders. AP2's corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. policy clearly endorses the principle "one share - one vote". This should also serve as a guiding principle when spinning off a subsidiary. Distributing different shares in a subsidiary company according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. whether the shareholder has A or B-class shares in Electrolux also raises the risk that Electrolux shareholders will receive dividends of different values. All shareholders have equal rights to the company's assets. For this reason, when a company distributes such assets, all shareholders shall be treated equally. By awarding certain shareholders A-class shares, which often command a higher market value, while others are awarded B-class shares, shareholders in Electrolux are treated differently, without any justification. "Other Swedish and foreign investors have expressed great interest in this issue, and we are counting on considerable support at the Annual General Meeting," says Eva Halvarsson, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Second Swedish National Pension Fund/AP2. This information was brought to you by Waymaker http://www.waymaker.net |
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