The Finnish Corporate Governance Code

The Board of the Exchange has adopted Finnish Corporate Governance Code as a part of the Exchange self-regulation.

The aim of the Code is that Finnish listed companies apply corporate governance practices that are of a high international standard. The Code will harmonise the practices of listed companies as well as the information given to shareholders and other investors. It will also improve the transparency of administrative bodies, management remuneration and remuneration systems. The Code also provides an overall picture of the central principles of the corporate governance system of Finnish listed companies. Good corporate governance will enhance the success of Finnish listed companies.

The ownership structures, areas of business and extent of operations of listed companies vary. There are also differences in the governance structures of listed companies. Most Finnish listed companies are medium or small-sized companies in international terms. The level of foreign shareholding in Finnish listed companies is one of the highest in Europe.

The corporate governance system of Finnish listed companies is based on Finnish legislation, and this Code complements the statutory procedures.

The Code shall replace the Corporate Governance Recommendation for Listed Companies issued in December 2003. As a general rule The Code will enter into force on 1 January 2009. The Code may, however, be applied immediately after it has been issued. The decisions by a general meeting possibly required by the application of the Code can be made at the first annual general meeting after the effective date of the Code. Recommendations 1, 9 and 51 will enter into force on the dates given separately in the Code.

Finnish Corporate Governance Code (unofficial translation)