This page describes the structure of LKAB's corporate governance and reporting. LKAB is a Swedish public limited company which has its registered office and head office in Luleå. LKAB is wholly owned by the Swedish state.
Corporate governance at LKAB is based on Swedish legislation, the Swedish Code of Corporate Governance (the Code), the state's ownership policy and internal control documents. You can find the Code here.
In the state's ownership policy and guidelines for state-owned companies, which are determined annually, the government describes its mission and objectives, applicable frameworks, and its position on important principles related to corporate governance at state-owned companies. Read more.
The main decision-making bodies are the Annual General Meeting, the Board of Directors and the CEO. The Board of Directors is appointed by the AGM. The Board in turn appoints a CEO, who is in charge of the day-to-day administration according to the Board's guidelines and instructions.
LKAB's values are Committed, Innovative, Responsible. These values and the company's Code of Conduct form the basis for the way everyone within the Group must act in relation to internal and external stakeholders. LKAB's business must be characterised by high levels of business ethics and integrity.
Some of the Group's operations are conducted within wholly and partially owned subsidiaries. These are presented in the annual and sustainability report.
Corporate governance structure
Deviations from the Code
LKAB applies the Swedish Code of Corporate Governance (the Code). This forms part of the state's ownership policy. As LKAB is wholly owned by the Swedish state, however, some of the provisions in the Code do not apply.
LKAB's governance differs from the regulations contained in the Code on the following points.
Code rule with deviation and explanation/comment
Publication of information on shareholder's right of initiative.
The purpose of this rule is to give shareholders the opportunity to prepare for the AGM in a timely manner and to have a matter included in the AGM notice.
At state-owned companies, it is not necessary for this rule to be applied, and there is therefore no publication of information on the shareholder's right of initiative.
The company shall have a nomination committee that represents the company's shareholders.
Due to its ownership structure, LKAB does not have a nomination committee. The Board nomination process is implemented according to the policies outlined in the state's ownership policy and is co-ordinated by the Ministry of Enterprise and Innovation.
Accordingly, the references to the nomination committee in points 1.2, 1.3, 4.6, 8.1 and 10.2 of the Code are not applicable.
The Corporate Governance Report shall contain information indicating that Board members are independent in relation to major shareholders.
This provision is aimed primarily at protecting non-controlling shareholders in companies with dispersed ownership. In companies that are wholly owned by the state, it is not necessary to apply this rule.