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Ericsson shareholder Cevian to vote against board members at AGM -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO. The Ericsson logo can be seen in its Stockholm headquarters, Sweden on June 14, 2018. REUTERS/Olof Schwahnberg

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STOCKHOLM, (Reuters) – Cevian Capital (an activist investor) said Monday that it would vote against granting discharges to Ericsson’s board members and its president at Tuesday’s annual general meeting (AGM).

Ericsson was criticized by the U.S. Justice Department, its shareholders and for failing to disclose that its 2019 investigation had revealed the possibility of the company paying militant groups in Iraq.

Cevian released a statement saying that they still do not have enough information to be able to form an informed judgement about the causes and consequences of the events. Given the severity of the damages and the absence of any information, it is impossible to hold the board responsible.

If shareholders have at least 10% ownership of the company, they can sue the board or CEO under the Swedish Companies Act.

Cevian has just under 5% share in Ericsson.

The company and its shareholders might not be entitled to claim damages for the management of the business by a CEO or board member who is relieved from any liability during an AGM.

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