Highlights of 2006
- In April, the Annual General Meeting approved the Board’s proposal for distributing the Group’s Outdoor Products operations, Husqvarna, to Electrolux shareholders. In June, Husqvarna was listed as an independent company on the Stockholm Stock Exchange.
- In December, an Extraordinary General Meeting approved distribution of capital to shareholders through redemption of shares.
- Work continued on ensuring that Electrolux is in compliance with the criteria of the Sarbanes-Oxley Act, in particular Section 404.
- At the end of the year, Board Chairman Michael Treschow announced that he declines re-election at the AGM in 2007.
The governance of Electrolux is based on the Swedish Companies Act, the regulatory system of the Stockholm Stock Exchange, including the Code of Corporate Governance (the “code”), as well as other relevant Swedish and foreign laws and regulations.
Electrolux applies the code. This corporate governance report is drawn up as a part of this application. The report has not been audited by the Group’s external auditor. Electrolux does not report any deviations from the code in 2006, except as regards the composition of the Board of Directors’ Remuneration Committee, see page 118 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.