Share capital
The share capital of Electrolux consists of A-shares and B-shares. An A-share entitles the holder to one vote and a B-share to one-tenth of a vote.
All shares entitle the holder to the same proportion of assets and earnings and carry equal rights in terms of dividends. An A-share can at the request of the owner be converted into a B-share.
Share information is updated quarterly on the Group’s website. For the latest information regarding conversion of shares see press releases.
The dual share class system is a governance mechanism that has been exceedingly common in Sweden for decades. In Swedish listed companies with dual class share systems, it is not unusual that both classes of shares are listed although in some companies it is only the more liquid class of lower voting shares that are listed.
The share structure and the respective rights attached to the different classes of shares are set by the articles of association of the company, which is a publicly available document that can be amended only by a shareholder resolution with special voting majority. However, no class of share may carry voting rights that are more than ten times greater than the voting rights of any other class of share, and the Swedish dual class share system is combined with strong minority protection rules to ensure that all shareholders are fairly treated. Such minority protection rights set out in the Swedish Companies Act include:
- a strong principle of equal and fair treatment of all shareholders,
- qualified majority requirements for key material shareholder decisions,
- shareholder pre-emption rights on share issues, and
- minority powers to take specific action, including to request minimum dividends, minority auditors and special examiners.