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Corporate Governance

Corporate Governance

The Volvo Group appreciates the value of sound corporate governance as a fundamental base in achieving a trusting relation with shareholders and other key parties.

The Swedish Corporate Governance Code ("the Code"), applied by the Volvo Group, aims at empowering the shareholders and creating a sound balance of power between shareholders, the board of directors and the senior management.

Sound corporate governance, characterized by high standards when it comes to transparency, reliability and ethic values, has always been a well established guiding principle within the Volvo Group's operations.

Independent auditors

Volvo's auditors are elected by the Annual General Meeting, for a period of four years. The current auditor is the registered accounting firm Deloitte AB (“Deloitte”), which was elected at the Annual General Meeting 2018 for a period of four years. Jan Nilsson is the auditor-in-charge.

The external auditors discuss the external audit plan and risk management with the Audit Committee. The auditors review the interim report for the period January 1 to June 30 and the annual report. The auditors report their findings as regards the annual report to the shareholders through the audit report, which they present to the Annual General Meeting of the shareholders. In addition, the auditors report detailed findings from their reviews to the Audit Committee twice a year and, once a year, to the full Board of Directors.

When Deloitte is retained to provide services other than the audit, it is done in accordance with rules decided by the Audit Committee pertaining to pre-approval of the nature of the services and the fees.

For more detailed information concerning auditors' fees see Note 28 of the notes to the consolidated financial statements.

Our Code of Conduct

At the core of what we do.

Articles of association

The articles of association of a Swedish limited liability company include certain rules and regulations governing the business activities of the company. The articles of association are adopted by the general meeting of shareholders. The Swedish Companies Act (2005:551) includes requirements on the contents of the articles of association.

The Swedish Corporate Governance Code

The Swedish Corporate Governance Code ("the Code"), applied by the Volvo Group, aims at empowering the shareholders and creating a sound balance of power between shareholders, the board of directors and the senior management.

Sound corporate governance, characterized by high standards when it comes to transparency, reliability and ethic values, has always been a well established guiding principle within the Volvo Group's operations.

Swedish corporate governance is based on legislation and self-regulation. The legal framework that applies to AB Volvo includes among others the Swedish Companies Act, the Articles of Association of AB Volvo and the Swedish Corporate Governance Code (the "Code"). The Code contains a number of rules and guidelines that in many cases go further than what the law requires.

A company that is bound to apply the Code, like AB Volvo, may deviate from individual rules, but any deviation must be explained under the principle "comply or explain".

You can find more information on the special features of Swedish corporate governance in the brochure below.