Skandia board recommends settlement with former chairman
16 Mar 2005, 10:38
Published: 16 Mar 2005 10:38 GMT+01:00
The board wants shareholders to approve the agreement that Lars Ramqvist repay the director's fees he received for 2000 and 2001, amounting to 2,216,667 kronor.
In a statement made to the press, Skandia's current chairman, Bernt Magnusson, claims "a friendly settlement" with Ramqvist is in the best interest of the company: after state prosecutor Christer van der Kwast dropped the case against Ramqvist, a drawnout legal battle would incur a number of hidden costs and would prove too expensive.
"It is a much better alternative than a prolonged, costly and - not least - uncertain legal process," said Magnusson.
Although a number of major shareowners had demanded Ramqvist be sued for damages, Skandia's board have unanimously decided it is in the company's better interests if Ramqvist pays back the director's fees.