Work of the board of directors

The duties of the Board of Directors are set forth in the Swedish Companies Act, the Company’s Articles of Association and the Code, of which the last will be applicable to the Company after the listing of the shares on Nasdaq Stockholm.

In addition to this, the work of the Board is guided by the procedural rules for the Board of Directors, which the Board of Directors adopts annually. The procedural rules for the Board of Directors govern the division of work and responsibility among the Board of Directors, its Chairman and committees. Further, the division of work between the Board of Directors and the Chief Executive Officer is steered by the CEO’s instructions, which the Board of Directors adopts annually. The CEO’s instructions also specify the financial reporting procedures for the Chief Executive Officer.

The Board of Directors’ tasks include adopting strategies, business plans and budgets, interim reports, year-end financial statements and annual reports, and setting instructions, policies and guidelines. The Board of Directors is also required to follow economic developments and ensure the quality of financial reporting and internal controls and evaluate operations on the basis of the objectives and guidelines set by the Board of Directors. Finally, the Board of Directors decides on major investments and changes in the organization and activities of the Company.

The Chairman of the Board of Directors is in charge of the work of the Board of Directors, responsible for ensuring that the Board of Director’s work is carried out efficiently and that the Board of Directors fulfills its obligations in accordance with applicable laws and regulations. In particular, the Chairman shall, in close collaboration with the Chief Executive Officer, monitor the Company’s performance and prepare and chair Board meetings. The Chairman is also responsible for ensuring that the Board of Directors evaluates its work each year and always receives the information necessary to perform its work effectively. The Chairman represents the Company in relation to its shareholders.