Corporate governance code
The Swedish Code of Corporate Governance entered into force as of July 1, 2005. Subsequent to this the Code has been revised and its application broadened.
The rules represent an addition mainly to the provisions in the Swedish Companies Act on a company's organization, but also to the relatively extensive self regulation that exists in the area of Corporate Governance. The code is based on the principle 'comply or explain'. Under this principle a company following the Code may depart for individual rules; however, in that event it must provide an explanation stating the reason for each departure reported.