Sweden’s AP4, through its membership of Institutionella Ägares Förening (IÄF), has called for the continuation of in-person annual general meetings (AGMs) of Swedish listed companies following revelations that some companies are planning to only hold digital AGMs.

The IÄF, whose purpose is to safeguard the interests of institutional investors in Sweden, has learned that there is an ongoing discussion about the need for Swedish listed companies to propose adjustments to their articles of association before the spring's AGMs, to enable purely digital general meetings.

The Swedish Companies Act and the Swedish Code of Corporate Governance already make it possible – without amending a company’s articles of association – for shareholders to participate digitally – so-called hybrid meetings – i.e. shareholders can choose to participate digitally or through physical participation. In addition, at the start of 2024, the Swedish Companies Act was also amended to enable companies to hold fully digital AGMs.

AP4 head of corporate governance, Thomas Ehlin, commented: “As active owners on the Stockholm Stock Exchange, AP4 sees the importance of ensuring that all shareholders in all situations can exercise their voting rights and to encourage engaged ownership regardless of whether you are a major shareholder or not, it is an important part of the Swedish ownership model that we cherish.

"We will therefore not support proposals to amend articles of association that allow for digital meetings without the possibility of physical participation.”

The IÄF argues that hybrid meetings have already been successfully applied and create the opportunity for high attendance from the shareholder community combined with the possibility of physical attendance for those who so wish.

The association believes that the Swedish model for corporate and corporate governance is based on committed and responsible owners, and the possibility of physical participation in general meetings is central to this.

“Of course, we affirm the technological development and see more advantages with what it can contribute to general meetings – but all as a complement to the physical meeting,” the IÄF stated.

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