Highlights of 2005
- The Swedish Code of Corporate Governance is part of the listing agreement with the Stockholm Stock Exchange as of July 1, 2005. Electrolux applies the code as of that date.
- Work continued on ensuring that Electrolux complies with requirements of the US Sarbanes-Oxley Act of 2002, in particular section 404.
- Proposal to spin-off the Group’s outdoor operations as a separate unit to be distributed to Electrolux shareholders
This Corporate Governance Report for 2005 has not been audited by the external auditors. This report is not part of the formal financial statements.
AB Electrolux is a Swedish public limited liability company. The Group is governed on the basis of the Articles of Association of Electrolux AB, the Swedish Companies Act, the listing agreement with the Stockholm Stock Exchange, the Swedish Code of Corporate Governance and other relevant Swedish and foreign laws and regulations.
The Swedish Code of Corporate Governance (the code) is included in the listing agreement of the Stockholm Stock Exchange as of July 1, 2005, and has been applied by Electrolux as from that date. The Electrolux Group had previously applied most of the provisions of the code and since July 1, 2005, has implemented the remainder of the provisions. Electrolux applies the provisions of the code with the purpose of developing the Group’s corporate governance in line with the goals of the code. Electrolux does not report any deviations from the code in 2005, except as regards the report on internal control over financial reporting, see “Description of internal control over financial reporting” on page 12 for more information.
As a result of the US Securities and Exchange Commission (SEC) registration of Electrolux B-shares in the form of American Depositary Receipts (ADRs), Electrolux is subject to US securities laws and regulations which affect the governance of the Group, including the Sarbanes-Oxley Act of 2002. Electrolux submits an annual Form 20-F report to the SEC.