March 30, 2022
Ericsson’s Chief Executive Borje Ekholm has been criticized by investors over the handling of the Iraq probe at the group’s annual general meeting (AGM) on Tuesday.
The U.S. Department of Justice (DoJ) accused the company of breaching a 2019 deferred prosecution agreement after it failed to report potential misconduct in Iraq to the U.S. authorities.
Investors were furious because they were not informed of the company probe until media inquiries about it surfaced.
During the meeting, shareholders representing more than 10% of Ericsson shares voted against discharging board members of liability for the previous year.
The Swedish Company law allows shareholders to sue board members that are not annually discharged of their liabilities by shareholders.
Shareholders, however, approved a proposal to reappoint the CEO and the board. Chairman Ronnie Leten also stated that Ekholm and the management team had the full support of the board.
“I fully understand the concern over the recent turbulence in Ericsson. I want to emphasize again the full commitment to rebuild your trust in Ericsson,” Leten told the meeting.
For more information, read the original story in Reuters.
