Governance and control
Kommuninvest’s framework for governance and control consists mainly of the Act on Economic Associations, the Companies Act, the Articles of Association of the Kommuninvest Cooperative Society and the owner directive from the Kommuninvest Cooperative Society to Kommuninvest i Sverige AB.
Kommuninvest’s overarching objective is to generate the greatest possible benefit for the members of the Kommuninvest Cooperative Society, that is, Swedish municipalities and county regions. The Cooperative Society, is a collaborative venture with the principal purpose of providing members and their majority-owned companies access to cost-efficient and stable loan financing. All business operations are conducted within Kommuninvest i Sverige AB, while the Kommuninvest Cooperative Society deals with issues of ownership and membership.
The members themselves determine the focus of the operations and no individual member has any decisive influence in isolation. At the Annual General Meeting, each member has one vote.
Good governance and control are crucial, since Kommuninvest is publicly owned and has a role of considerable responsibility. The regulations primarily applied in relation to governance and control are the Economic Associations Act, the Companies Act and the Annual Accounts Act.
Kommuninvest is not obliged to adhere with the Swedish Code of Corporate Governance, since the shares in Kommuninvest i Sverige AB are not traded in a regulated market in Sweden. As a credit market company, Kommuninvest i Sverige AB needs to adhere to the Banking and Financing Business Act and the general advice and regulations issued by Finansinspektionen (Swedish Financial Supervisory Authority) and its equivalents within the European Union, the ESAs (European Supervisory Authorities).
The key principles on which governance within Kommuninvest rests include:
No vested interest in generating profit
Kommuninvest has no interest of its own in generating profit. Once the consolidation requirements of the operations have been satisfied, all surpluses accrue to the members.
No variable remuneration
Remunerations and other terms of employment should be in-line with the market and should consist solely of fixed wages. No variable remunerations are paid.
Each year, current topics are discussed by representatives of the members in smaller forums. Member consultations represent important fora for the preparation of matters for resolution by the Annual General Meeting.
At its Annual General Meeting, the Kommuninvest Cooperative Society adopts ownership directives for Kommuninvest i Sverige AB. The directives primarily include guidelines regarding consolidation, risk levels, remuneration principles, principles for business travel and representation, expertise on funding matters, development of products and services and any special assignments set for the Company by the Society. The directives are set annually by the Annual General Meeting of Kommuninvest i Sverige AB.
A complete account of Kommuninvest’s governance and control is included in the Annual Reports. Each year, the Kommuninvest Cooperative Society prepares an annual governance and control report. Kommuninvest i Sverige AB is required by law to prepare a corporate governance report.