Swedish Companies Act – Proper Disclosure
Proper Disclosure Under the Swedish Companies Act: EnsuringTransparent IR in Sweden
The Swedish Companies Act obligates corporate boards to oversee that all information likely to influence a company’s valuation is handled and communicated correctly. While the Act does not define “proper manner” in a single clause, regulatory guidance and case law interpret it as requiring disclosures that are:
- Truthful & Complete: Information must present an accurate picture without omitting significant facts. Investors rely on this to make informed decisions.
- Clear & Understandable: Disclosures should avoid jargon and be structured logically, using headings, summaries, and explanatory notes, to ensure accessibility for both retail and institutional audiences.
- Compliant with Accounting Standards: Presentations must adhere to K3 or IFRS frameworks as applicable, ensuring consistency and comparability with peer disclosures.
Key Best Practices for IR Websites:
- Automated Validation: Implement workflows that cross-check press-release content against source documents (e.g., board minutes, financial models) to catch omissions or inconsistencies before publication.
- Clear Structuring: Use a standardized template for material announcements, with sections for “Background,” “Impact,” and “Next Steps.”
- Version Control & Archiving: Maintain an archive of all disclosures (with timestamps) to demonstrate traceability and to respond promptly to any regulatory inquiries.
By embedding these practices into your IR website and processes, you ensure disclosures meet the “proper manner” threshold, safeguarding your company from legal risk and reinforcing investor confidence.