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Stockholm Stock Exchange's Disciplinary Committee fines Wedins


Stockholm Stock Exchanges Disciplinary Committee fines Wedins Wedins Skor & Accessoarer AB has breached the companys listing agreement with the Stockholm Stock Exchange by not providing information about an extraordinary general meeting in time and by not handling price-sensitive information in the correct manner. The Stockholm Stock Exchanges Disciplinary Committee has decided to fine Wedins SEK 576,000. According to the Stockholm Stock Exchanges listing agreement, a listed company must immediately disclose when the Board of Directors makes a decision to convene an extraordinary general meeting. At a meeting of the Board of Directors of Wedins, held on September 27, 2005, the Board made such a decision but did not disclose the decision before September 29. The decision was a result of the fact that the Board failed to reach agreement about the companys future governance. The Disciplinary Committee found that Wedins had contravened the listing agreement by not immediately disclosing the information about the general shareholders meeting. According to the regulations of the Exchange and Clearing Operations Act, a listed company may delay disclosure of price-sensitive information if there are reasons for doing so. If the company makes such a decision, the listing agreement stipulates that the company must immediately inform the Exchange and have procedures in place that ensure that only those persons who require the information have access to it. In addition, the company must have the preparedness to disclose the information in the event that it nevertheless leaks out. On October 13, 2005, it was reported in the Board of Directors of Wedins that FöreningsSparbanken had decided to shorten the repayment period for what is known as a seasonal credit of SEK 40 million. Since the banks decision was part of an ongoing, non-concluded discussion about Wedins future financing, the company chose not to disclose the information about the seasonal credit. However, information about this decision was not sent to the Exchange. On October 18, 2005, the daily newspaper Svenska Dagbladet published an article containing detailed information about the banks decision concerning the seasonal credit. The article did not result in Wedins taking any action. The Disciplinary Committee has concluded that, in view of the situation in which Wedins found itself during autumn 2005, the information about the seasonal credit was of a price-sensitive nature but that the company was entitled to postpone disclosure of the banks decision. However, the Committee found that the company had contravened the listing agreement by not immediately informing the Exchange about the postponement and by not immediately disclosing any information when the details about the banks decision had leaked out. The Disciplinary Committee fined the company SEK 576,000, equivalent to three annual fees. For more information, please contact: Anders Ackebo, Senior Vice President, Surveillance, OMX +46-8-405 70 10 Ulrika Areskog, Communications Manager, Stockholm Stock Exchange +46-8-405 63 76 Disciplinary Committee About the The role of Stockholm Stock Exchanges Disciplinary Committee is to consider suspicions regarding whether Exchange Members or listed companies have breached the rules and regulations applying on the Exchange. If the Exchange suspects that a member or company has acted in breach of the Exchanges rules and regulations, the matter is reported to the Disciplinary Committee. The Exchange investigates the suspicions and pursues the matter and the Disciplinary Committee issues a ruling regarding possible sanctions. The sanctions possible for listed companies are a warning, a fine or delisting. The fines that may be imposed range from one to 15 annual fees. The sanctions possible for Exchange Members are a warning, a fine or debarment. The Disciplinary Committees Chairman and Deputy Chairman must be lawyers with experience of serving as judges. At least two of the other members of the Committee must have in-depth insight into the workings of the securities market. Members: Supreme Court Justice Johan Munck (Chairman), Supreme Court Justice Marianne Lundius (Deputy Chairman), Madeleine Leijonhufvud (professor), Stefan Erneholm (company director) and Hans Mertzig (company director). Deputy Members: Hans Edenhammar (MBA), Claes Beyer (lawyer), Jack Junel (company director), Carl Johan Högbom (MBA) and Ragnar Boman (MBA). About OMX OMX is a leading expert in the exchange industry. Through the Nordic Exchange in Copenhagen, Stockholm, Helsinki, Riga, Tallinn and Vilnius, OMX offers access to approximately 80 percent of the Nordic and Baltic securities market. Our integrated technology solutions span the entire transaction chain enabling efficient securities transactions for exchanges, clearing organizations, central securities depositories and other financial institutions around the world. OMX is listed on the Nordic Exchange in Stockholm, Helsinki and Copenhagen. For more information please visit PDF

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