Prior to listing on Nasdaq Stockholm, corporate governance at Handicare was based on Swedish law and internal rules and regulations.
The Swedish Corporate Governance Code
The Swedish Corporate Governance Code (the “Code”) applies for all companies whose shares are listed on a regulated market in Sweden and must be applied from the first day of listing. The Code applies the comply or explain mechanism. This means that companies that apply the Code are allowed to deviate from individual rules as long as they explain each deviation. In conjunction with its annual report, the company must also publish a separate corporate governance report.
Handicare expect to comply with all rules in the Code from the date of the listing of the shares on Nasdaq Stockholm, with the exception of rule 9.7 of the Code. Handicare will deviate from rule 9.7 of the Code with respect to the upcoming warrant program described in the Incentive Program. In that the Participants pursuant to the terms of one of the two warrant series may exercise such warrants to subscribe for shares after a two-year period and hence after a shorter period of time than the minimum time of three years prescribed by the Code. Once listed on Nasdaq Stockholm, Handicare intends to only implement three-year programs. Deviations from the Code will be reported in the Company´s annual corporate governance reports, which will be published for the first time in conjunction with the annual report for 2017.