Corporate Governance
The purpose of Volvo Car Group’s corporate governance is to create a good foundation for active and responsible ownership, a proper distribution of responsibility between the different company bodies, as well as good communication with all of the Group’s stakeholders.
The corporate governance principles adhered to by Volvo Car Group are based on Swedish law (mainly the Swedish Companies Act and the Swedish Annual Accounts Act (Sw. årsredovisningslagen (1995:1554)), Volvo Car ABs Articles of Association, the Swedish Corporate Governance Code (the “Code”) and Nasdaq Stockholm’s rulebook for issuers, the listing rules of the Luxemburg Stock Exchange, as well as other relevant laws and regulations. The Code is based on the “comply or explain” principle, meaning that companies are not obliged to at all times apply every rule in the Code, but are allowed the freedom to choose alternative solutions which they feel are better in their particular circumstances, provided they report every deviation, describe the alternative solution and explain the reasons for the deviation.
Volvo Car Group applies the principles of sound corporate governance and responsible business practice and the Code without any deviation. Any deviations from the Code will be reported in Volvo Car Group’s annual corporate governance reports.
Governance Structure
Volvo Car Group’s corporate governance functions can be described in the below model.
