Welcome to the Annual General Meeting of shareholders of Elekta AB (publ)
STOCKHOLM, August 3 – Shareholders of Elekta AB (publ) are hereby invited to attend the Annual General Meeting to be held on Tuesday, September 1, 2015, at 1:00 pm at the Radisson Blu Waterfront Hotel in Stockholm. Registration will commence at 12:00 pm.
Notification
Shareholders who wish to attend the Meeting shall:
- be registered in the register of shareholders maintained by Euroclear Sweden AB not later than Wednesday, August 26, 2015; and
- notify the Company of their intention to attend (along with notification of the number of any representatives) no later than on Wednesday, August 26, 2015, preferably before 4:00 pm to:
Internet: www.elekta.com
Mail: Elekta AB (publ)
“Annual General Meeting”
Box 7842
SE-103 98 Stockholm
Phone: +46 (0) 8 402 92 80
In providing notification of attendance, shareholders must state their name/company name, national identification number/corporate registration number, address, telephone number and the registered number of shares held.
Proxy, shares registered in the name of a nominee etcetera
Shareholders represented by proxy must issue a power-of-attorney for the representative and the original power-of-attorney should be submitted at the same time as the notification. Forms of power-of-attorney in Swedish and English are available on the company’s web site, www.elekta.com. If the power-of-attorney is issued by a legal entity, a verified copy of the registration certificate or corresponding document for the legal entity must be appended. The power-of-attorney and the registration certificate may not be older than one year. However, a longer period of validity may be specified on the power-of-attorney, although not longer than five years from the date of issue.
Personal data obtained from notifications, proxies and the register of shareholders kept by Euroclear Sweden AB will be used for the necessary registration and preparation of the voting list for the Meeting.
Shareholders whose shares are registered in the names of nominees must temporarily re-register the shares in their own names in the shareholders’ register maintained by Euroclear Sweden AB in order to participate in the Annual General Meeting. Such re-registration, so called voting right registration, must be completed not later than Wednesday, August 26, 2015, which means that shareholders in sufficient time prior to this date must instruct the nominee to carry out such action.
The financial statements, the auditor’s report, the auditor’s statement pursuant to Chapter 8 section 54 of the Swedish Companies Act and the Board’s complete proposals for decisions in accordance with points 10 (including the Board’s reasoned statement in accordance with Chapter 18 Section 4 of the Swedish Companies Act), 18, 19 and 20 a) (including the Board’s reasoned statement in accordance with Chapter 19 Section 22 of the Swedish Companies Act), of the agenda will be available on the Company’s website, www.elekta.com, and at the Company’s head office at Kungstensgatan 18 in Stockholm as of Tuesday, August 11, 2015 and will be distributed to shareholders upon request and notification of postal address. The Nomination Committee’s proposals and reasoned statement and details of all proposed members of the Board of Directors will be available on the Company’s website from the date of issue of this notice. All of the above documentation will also be presented at the Annual General Meeting.
The total number of shares in the Company amounts to 382,828,775 shares, whereof 14,250,000 shares of series A and 368,578,775 shares of series B, representing a total of 511,078,775 votes. The series A shares carries ten votes and the series B shares carries one vote. The Company holds 1,541,368 series B shares, which may not be represented at the general meeting. The information pertains to the circumstances as per the time of issuing this notice.
The shareholders present at the Annual General Meeting have a right to request information regarding the matters on the agenda or the Company’s financial situation in accordance with Chapter 7 Section 32 of the Swedish Companies Act (2005:551).
Agenda
1. Opening of the Meeting;
2. Election of the Chairman of the Meeting;
3. Preparation and approval of the list of shareholders entitled to vote at the Meeting;
4. Approval of the agenda;
5. Election of one or two minutes-checkers;
6. Determination of whether the Meeting has been duly convened;
7. Presentation of the Annual Report and the Auditors’ Report and the consolidated accounts and the Auditors’ Report for the Group;
8. Address by the President and Chief Executive Officer and report on the work of the Board of Directors and Committees of the Board of Directors by the Chairman of the Board;
9. Resolution concerning adoption of the balance sheet and income statement and the consolidated balance sheet and consolidated income statement;
10. Resolution concerning approval of the disposition of the Company’s earnings as shown in the balance sheet adopted by the Meeting;
11. Resolution concerning the discharge of the members of the Board of Directors and the President and Chief Executive Officer from personal liability;
12. Report on the work of the Nomination Committee;
13. Determination of the number of members and any deputy members of the Board of Directors;
14. Determination of the fees to be paid to the members of the Board of Directors and the auditors;
15. Election of Board members and any deputy Board members;
16. Election of Auditor;
17. Resolution regarding guidelines for remuneration to executive management;
18. Resolution regarding
a) Performance Share Plan 2015
b) transfer of own shares in conjunction with the Performance Share Plan 2015;
19. Resolution regarding
a) transfer of own shares in conjunction with the Performance Share Plan 2014
b) authorization for the Board of Directors to decide upon transfer of own shares in conjunction with the Performance Share Plan 2013 and 2014;
20. Resolution regarding
a) authorization for the Board of Directors to decide upon acquisition of own shares
b) authorization for the Board of Directors to decide upon transfer of own shares;
21. Appointment of the nomination committee;
22. Proposed resolutions by shareholder Thorwald Arvidsson regarding:
a) amendment of section 5, paragraph 2 in the articles of association
b) removal of section 12 in the articles of association
c) instruction to the Board of Directors to write to the Government
d) instruction to the Board of Directors to establish a shareholders’ association
e) instruction to the Board of Directors regarding shareholder representatives in the Company’s Board of Directors
f) instruction to the Company’s Nomination Committee regarding the proposed candidates’ ethical standard;
23. Closing of the Meeting
Proposals by the Board, the Nomination Committee and individual shareholders
Point 2 – Chairman of the Meeting
The nomination committee proposes Bertil Villard, attorney at law, as Chairman of the Meeting.
Point 10 – Disposition of the Company’s earnings
The Board of Directors proposes that of the Company’s unappropriated earnings, SEK 1,971,134,244 an amount representing SEK 0.50 per share, should be distributed as dividend to the shareholders and that the remaining unappropriated earnings should be carried forward. Record day for the dividends is proposed to be Thursday, September 3, 2015. If the Meeting resolves in accordance with the proposal, payment through Euroclear Sweden AB is estimated to be made on Tuesday, September 8, 2015.
Points 13 to 16 – Election of the Board of Directors and Auditor and remuneration to the Board of Directors and the Auditors
The Nomination Committee proposes that the Board of Directors shall consist of nine (eight) members, without deputy members.
It is proposed that remuneration shall be paid to the Board at a total of SEK 4,295,000 (3,710,00) of which SEK 1,075,000 (1,040,000) to the Chairman of the Board, SEK 460,000 (445,000) to each of the external members of the Board, and remuneration for committee work at a total of SEK 660,000 (unchanged), of which SEK 90,000 (unchanged) shall be paid to the Chairman of the Company’s Executive Compensation Committee and SEK 50,000 (unchanged) to any other member of said committee, SEK 200,000 (unchanged) shall be paid to the Chairman of the Company’s Audit Committee and SEK 110,000 (unchanged) to any other member of said committee. No board fees or remuneration for committee work shall be paid to members of the Board that are employed by the Company.
Remuneration to the Auditor is proposed to be paid according to an approved account.
The Nomination Committee proposes that each of Luciano Cattani, Laurent Leksell, Siaou-Sze Lien, Tomas Puusepp, Wolfgang Reim, Jan Secher and Birgitta Stymne Göransson are re-elected as members of the Board, and that Annika Espander Jansson and Johan Malmqvist are elected as new members of the Board, for the time until the end of the next annual general meeting in 2016. Hans Barella has declined re-election. Laurent Leksell is proposed to be re-elected Chairman of the Board.
The Nomination Committee proposes that PwC, with Authorized Public Accountant Johan Engstam as auditor in charge, is elected as Auditor for the period until the end of the annual general meeting in 2016.
Proposal from shareholder
The shareholder Thorwald Arvidsson proposes that the directors of the Board, under no circumstances, shall be entitled to invoice their remunerations from another physical or legal person.
Point 17 – Resolution regarding guidelines for remuneration to executive management
The Board of Directors proposes that the Annual General Meeting on September 1, 2015 approve the following guidelines for remuneration and other terms of employment for the executive management of the Group. The guidelines will be valid for employment agreements entered into after the Annual General Meeting and for any changes made to existing employment agreements thereafter. It is proposed that the Board be given the ability to deviate from the below-stated guidelines in individual cases where specific reasons or requirements exist. The guidelines in the following proposal are in principle unchanged compared to the guidelines which were proposed by the Board of Directors and approved by the Annual General Meeting on August 28, 2014.
Guidelines
It is of fundamental importance to Elekta and its shareholders that the guidelines for remuneration and other terms of employment for the executives of the Group attract, motivate and retain competent employees and managers, both in the short and long-term. To achieve this goal, it is important to ensure fairness and internal equity, while maintaining market competitiveness in terms of the structure, scope and level of executive compensation within Elekta. Employment conditions for executive management should comprise a balanced mix of fixed salary, a variable salary component, annual incentive, long-term incentives, pension and other benefits, as well as notice and severance payments, where applicable.
Total target cash compensation
Total target cash compensation, (fixed plus variable salary components), should be competitive in the geographic market where the executive is resident or work. The level of total target compensation should be reviewed annually to ensure that it is above market median and within the third quartile for similar positions in that market. Market medians are established with the assistance of external compensation benchmarking. Since compensation should be performance-driven, the target annual variable salary component should account for a relatively high portion of the total target compensation.
Compensation components
The Group compensation system comprises various forms of compensation. This ensures well-balanced remuneration, thereby strengthening and underpinning short and long-term objective setting and achievement.
Fixed salary
Executive Management’s fixed salary shall be individual and based on the content and responsibility of the position, the individual’s competence and experience in relation to the role held, as well as the geography in which the position is based.
Variable salary
In addition to a fixed salary, Executive Management also has a variable salary component. The variable component is structured as a portion of the total cash remuneration package and is primarily related to the achievement of common Group financial performance goals. The Key Performance Indicators (KPIs) for variable salary components shall primarily be related to the outcome of specific financial and functional objectives within the Group compensation and benefit system.
The size of the variable salary component depends on the position held and may amount to between 30 percent and 70 percent of the fixed salary for on-target performance. Performance against fixed targets and payment for results achieved are measured quarterly. Quarterly payments against variable salary components are capped at 100 percent.
The goals for the variable salary component are established annually by the Board so as to sustain the business strategy and objectives. Other KPIs may be used to drive focus on non-financial objectives of particular interest.
Annual incentive
For performance related to financial goals within the variable salary plan exceeding 100 percent of the target, there is the opportunity for additional compensation called annual incentive. The annual incentive entails a potential to earn a maximum of 60 percent of the target variable salary component. Accordingly, the maximum payout level for the sum of the variable salary component and the annual incentive is capped at a 160 percent of the original target for variable compensation. The plan also contains a minimum performance level or threshold under which no variable salary or annual incentive will be paid out at all.
Equity-based long-term incentive programs
The Board also uses long-term incentives to ensure alignment between shareholder interests and executive management, senior managers and other key colleagues. On an annual basis, the Board of Directors evaluates whether an equity-based long-term incentive program should be proposed to the Annual General Meeting.
In order to strengthen long-term thinking in decision-making and ensure achievement of long-term objectives, while also covering situations where equity-based solutions may be inappropriate or precluded by law, the Board may also selectively decide on other types of non-equity-based long-term incentive programs. Monetary long-term incentives should only be used as remuneration in special circumstances and be in line with practice in each market. They must also require continued employment in the Group.
Retention measures
In order to ensure long-term engagement and retention of key staff in connection with the acquisition of new business, the divestment of operations or other transitional activities, an additional annual incentive with a deferred payment of 12–24 months may or may not be applied. This deferred incentive requires continued employment until an agreed future date for any payment to be made and is applied only in special and rare circumstances, which means that it is not part of any ordinary executive remuneration scheme. The deferred incentive should never exceed 50 percent of the contractual annual variable salary component and shall in other aspects comply with the Group bonus plan.
Pensions
When establishing new pension agreements, senior executives who are entitled to pension benefits should only be enrolled in defined-contribution schemes. The standard retirement age for Swedish citizens is 65 years while other executives follow the rules of their respective countries of residence. The main guideline is that the size of pension contributions be based only on the fixed salary. Certain individual adjustments may occur based on local market practice.
Other benefits
Benefits such as company cars and health, medical and sickness-related insurance schemes, should be of a more limited value compared with other items of the compensation package and in line with the market practice for the respective geographic market.
Notice periods and severance agreements
Periods of notice in Elekta follow local labor legislative requirements in the geographies in which they are based. Senior executives generally have notice periods of between 6 and 12 months. In the event of a material change of control, the President and CEO shall have the right to terminate the employment with 6 months’ notice within 120 days, and the President and CEO shall be entitled to severance payment equal to 12 months employment including all employment benefits except for annual incentives and company car.
Severance agreements entitling executives to lump sum payments will in principle not be signed.
Preparation and decision process
During the year, Elekta’s Executive Compensation & Capability Committee (ECCC) provided the Board with recommendations regarding principles for formulating the Group’s remuneration system and remuneration of senior executives and senior managers. The recommendations covered formulation of the bonus system, distribution between fixed and variable remuneration and the size of any salary increases. The ECCC also proposed criteria for assessing the performance of senior executives and senior managers. Any decisions on remuneration for the CEO have been taken by the Board in its entirety.
The Board has discussed the proposals from the ECCC and its motion to the Annual General Meeting is based on the recommendation submitted. Elekta’s ECCC comprises the Chairman of the Board and three independent Board members. The President and CEO attend the committee’s meetings. The Group Vice President Human Resources acts as the ECCC secretary.
Point 18 a) – Resolution on a Performance Share Plan 2015
Performance Share Plan 2015 (“PSP 2015”) including the Board of Directors’ proposal for resolutions on implementation of a performance share plan and transfer of treasury shares.
Background
Long-term variable compensation is an integral part of Elekta’s remuneration strategy and Elekta has, for a number of years, resolved on a long-term incentive program in the form of a performance-based share program for key employees within the Elekta Group.
The Board of Directors has carried out a review of the Performance Share Plan 2014 (“PSP 2014”) in order to ensure that it continues to meet its stated objectives, i.e. to create involvement by key employees regarding possibilities and risk in the Company’s development and to ensure that they share the objective to generate profitable growth. It was also intended to motivate key employees to continued employment in the Group.
The completed review resulted in the conclusion that there is a need to implement a long-term incentive plan also this year. The long-term incentive program proposed by the Board of Directors to be implemented during 2015, relating to the financial years 2015-2017 and that may result in so-called performance shares being received during 2018, i.e. PSP 2015, is further described below.
The PSP 2015 is limited to the President and CEO and Executive Management, in total eleven (11) employees including the President and CEO. The purpose of the PSP 2015 is to encourage and improve long-term value creation in alignment with shareholders’ interests, the Company’s business strategy and financial targets as well as to focus on restoring lost shareholder value.
Main changes compared to the Performance Share Plan 2014
In order to strengthen the link to long-term company performance, as well as to simplify and to align the program with market trends, the following main changes are proposed to the PSP 2015 as compared to the PSP 2014:
• the employee group eligible for participation in the PSP 2015 has been limited to the President and CEO and Executive Management of the Company;
• an EPS (Earnings Per Share) target is introduced instead of the Group Business Volume and EBITA targets in order to more closely align the management and shareholders’ interests. In addition, a three year performance period is introduced for the EPS target in order to focus on long-term Group performance, whereas the performance period for the pervious targets was measured and earned out by one-third each financial year during the performance period.
Proposal for a Performance Share Plan 2015
The Board of Directors proposes that the Annual General Meeting resolves on the implementation of the PSP 2015. In order to implement the PSP 2015, the Board of Directors proposes that no more than in total 475,000 series B shares in Elekta may be used in the PSP 2015 to be transferred to employees in the Elekta Group and, that up to 30 per cent of these shares may be sold on Nasdaq Stockholm in order to cover, inter alia, social contribution costs.
The Board of Directors proposes that the Annual General Meeting resolves in accordance with the proposals set out below.
Implementation of the Performance Share Plan 2015
The PSP 2015 shall be offered to individuals with most impact on long-term company performance; i.e. the President and CEO and Executive Management, all in all eleven (11) employees.
The Board of Directors will determine a maximum value for the PSP 2015 per individual denominated in SEK. The maximum value for the President and CEO is the same as in the PSP 2014 and amounts to SEK 2,700,000, and for other members of the Group Management to SEK 1,350,000 respectively. The total sum of the maximum value for all participants in the PSP 2015 will not exceed SEK 16,200,000 excluding social contribution costs.
Each participant’s maximum value shall be converted into a number of shares, based on the average closing share price of the Elekta series B share on Nasdaq Stockholm during a period of ten trading days before the day the participants are offered to participate in the program. The total number of shares that are covered by the PSP 2015 and all shares covered by outstanding incentive programs, will not exceed five (5) per cent of the total number of outstanding shares in the Company.
Participants in the PSP 2015 will be granted a conditional award over performance shares, which is a right to receive a specific number of such shares at a future date, provided the relevant conditions are met. The total number of shares that can be received is dependent on the degree of fulfilment of one financial target, EPS Growth over the 3-year Performance Period. The Board of Directors establishes the minimum and maximum level for the performance target. For the PSP 2015, the 2015 PSP award will vest if the compound annual growth rate of EPS is between 32 per cent and 41 per cent comparing 2017 financial results to 2014. The performance target shall be adjusted at the occurrence of events affecting the number of outstanding shares in the Company, or unforeseen material events affecting the Elekta Group´s operations or otherwise affecting the performance targets and deemed relevant by the Board of Directors. Should the Company decide on changes to the company’s accounting principles or decide on restructuring costs the Board may decide on changes to the PSP 2015 performance targets.
The receipt of shares normally requires that the persons covered by the PSP 2015 are employed in the Elekta Group.
If all conditions included in the PSP 2015 are met, receipt of shares shall be made free of charge three years after an agreement has been entered into and following approval by the Board of Directors. Before the number of shares to be received are finally determined, the Board of Directors shall examine whether the allotment is reasonable considering the Company’s financial results and position, conditions on the stock market and other circumstances, and if not, as determined by the Board of Directors, reduce the number of shares to be allotted to the lower number of shares deemed appropriate by the Board of Directors.
The participants shall not provide any consideration for their rights under the program.
Participants shall at receipt of shares receive cash compensation for any cash dividend paid out for the three financial years 2015-2017.
The number of shares included in the proposal may be recalculated by the Board of Directors due to changes in the capital structure, such as a bonus issue, a consolidation or a split of shares, new issue or reduction of the share capital or similar measures.
The Board of Directors, or a committee established by the Board for this purpose, will be responsible for the detailed drafting and management of the PSP 2015, within the scope of the principal conditions and guidelines as specified. The Board of Directors shall thereupon be entitled to make adjustments to meet specific rules or market conditions abroad. The Board shall also be entitled to make other adjustments provided that there are substantial changes in the Elekta Group or its business environment which would signify that conditions for allocation in accordance with the PSP 2015 are no longer appropriate.
Participation in the PSP 2015 assumes that such participation is legally possible and suitable and that the administrative costs and financial efforts are reasonable in the opinion of the Board of Directors.
In order to reduce the economic risk upon the increase of the share price during the term of the performance shares and in order to secure the ability to deliver shares, Elekta intends to acquire and transfer own shares in accordance with points 20 a) and 18 b).
Costs of Performance Share Plan 2015
Assuming maximum allotment under the PSP 2015 and a share price of SEK 50, a maximum of 421,200 series B shares are required to fulfil commitments under the program (including social security costs), corresponding to approximately 0.11 per cent of the total number of outstanding shares. The number of shares covered by existing and outstanding incentive programs amounts to 1,742,714 shares, corresponding to approximately 0.46 per cent of the total number of outstanding shares.
Assuming maximum allotment of shares under the PSP 2015 and a share price of SEK 50, the costs, including social security costs and the financing cost for repurchased own shares, are estimated at approximately SEK 21,060,000.
Hedging actions
In order to secure delivery under the PSP 2015, the Board of Directors proposes under point 18 b), that no more than 475,000 series B shares may be transferred to employees in the Elekta Group and, moreover that a portion of the shares also may be transferred at Nasdaq Stockholm in order to cover inter alia social contribution costs. If the proposal to transfer repurchased shares to program participants would not be approved by the Annual General Meeting, the Board of Directors will consider other means to meet the delivery undertakings under the PSP 2015.
Preparation of the proposal
The proposal has been prepared by the company’s Executive Compensation Committee in consultation with the Board. The resolution to propose the PSP 2015 to the Annual General Meeting has been taken by the Board of Directors.
Outstanding incentive programs in Elekta
For a description of Elekta’s on-going share related incentive programs reference is made to note 5 in Elekta’s annual report for 2014/2015.
Majority requirement
A valid resolution in respect of the Board of Directors’ proposal at a general meeting requires that the resolution be supported by shareholders with more than half of the votes cast or, in the event of a tied vote, through the chairman exercising his casting vote.
Point 18 b) – Resolution regarding transfer of own shares in conjunction with the Performance Share Plan 2015
The Board proposes that the Meeting resolves on transfer of own shares in the Company and authorization for the Board as a result of the Performance Share Plan 2015 on the following terms.
i) No more than 475,000 shares of series B can be transferred with deviation from the shareholders’ preferential rights.
ii) Right to acquire shares shall be granted to such individuals within the Elekta group covered by the terms and conditions for the Performance Share Plan 2015. Further, subsidiaries within the Elekta group shall have the right to acquire shares free of consideration and such subsidiaries shall be obligated to immediately transfer free of consideration shares to their employees covered by the terms of the Performance Share Plan 2015.
iii) The employee shall have the right to receive shares during the period when the employee is entitled to receive shares in accordance with the terms of the Performance Share Plan 2015.
iv) Employees covered by the terms of the Performance Share Plan 2015 shall subject to certain conditions, receive shares of series B free of consideration.
v) The Board is authorized, during the period until the next Annual General Meeting to decide, on one or more occasions, to transfer no more than 142,500 shares on Nasdaq Stockholm, in order to cover certain payment, mainly social security payment. The transfer may be executed by waiving the shareholders’ preferential rights and at a price within the so-called spread (see above) at the time of the decision regarding the transfer and in accordance with the rules of Nasdaq Stockholm at any given time.
The reasons for deviation from the shareholders’ preferential rights and the base for determination of the transfer price are as follows.
The base for determination of the transfer prices is evident from the Board’s proposal under the relevant heading above.
The transfer of own shares forms part of the implementation of the Performance Share Plan 2015. The Board considers it an advantage for the Company and its shareholders that the employees are shareholders in the Company.
In order for the Meeting’s resolution in accordance with the proposal under this point 18 b) to be valid, shareholders representing at least nine tenths of the votes cast as well as the shares represented at the meeting must be in favor of the proposal.
Point 19 a) – Resolution regarding the transfer of own shares in conjunction with the Performance Share Plan 2014
The Annual General Meeting 2014 did not approve the Board’s proposal regarding transfer of own shares in conjunction with the Performance Share Plan 2014, despite that the Annual General Meeting previously approved the plan itself. The Board, however, believes that this is the most cost efficient way to fulfill the company’s obligations, and thus therefor proposes again that the Meeting resolves on transfer of own shares in the Company and authorization for the Board as a result of Performance Share Plan 2014 on the following terms.
i) No more than 1,139,600 shares of series B can be transferred with deviation from the shareholders’ preferential rights.
ii) Right to acquire shares shall be granted to such individuals within the Elekta group covered by the terms and conditions for the Performance Share Plan 2014. Further, subsidiaries within the Elekta group shall have the right to acquire shares free of consideration and such subsidiaries shall be obligated to immediately transfer free of consideration shares to their employees covered by the terms of the Performance Share Plan 2014.
iii) The employee shall have the right to receive shares during the period when the employee is entitled to receive shares in accordance with the terms of the Performance Share Plan 2014.
iv) Employees covered by the terms of the Performance Share Plan 2014 shall subject to certain conditions, receive shares of series B free of consideration.
The Board has set the targets for the 2014 Performance Share Plan as follows. Under the 2014 Performance Share Plan, the targets are set annually and are measured and earned by one-third each financial year during the financial year 2014/2015 until financial year 2016/2017. The targets for the 2015/2016 financial year are disclosed in the table below:
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The reasons for deviation from the shareholders’ preferential rights and the base for determination of the transfer price are as follows.
The transfer of own shares forms part of the implementation of the Performance Share Plan 2014 that was resolved upon at last year’s Annual General Meeting. The Board considers it an advantage for the Company and its shareholders that the employees are shareholders in the Company.
In order for the Meeting’s resolution in accordance with the proposal under this point 19 a) to be valid, shareholders representing at least nine tenths of the votes cast as well as the shares represented at the meeting must be in favor of the proposal.
Point 19 b) – Resolution regarding authorization for the Board to decide upon the transfer of own shares in conjunction with the Performance Share Plan 2013 and 2014
The Board proposes that the Meeting authorize the Board during the period until the next Annual General Meeting to decide, on one or more occasions, on the transfer of not more than 286,800 shares on Nasdaq Stockholm, with reference to the Performance Share Plan 2013 and 2014, to cover certain expenditures, mainly social security contributions. Transfers may be executed at a price that is within the so-called spread (see above) at the time of the decision regarding the transfer and in accordance with the rules of Nasdaq Stockholm at any given time.
The resolution of the Meeting in accordance with the Board’s proposal pursuant to this point 19 b) must be supported by shareholders representing at least two-thirds of the votes cast and the shares represented at the Meeting.
Point 20 a) – Resolution regarding authorization for the Board to decide upon acquisition of own shares
The Board proposes that the Meeting authorize the Board during the period until the next Annual General Meeting to decide, on one or more occasions, on the acquisition of a maximum number of own shares so that, after the purchase, the Company holds not more than five percent of the total number of shares in the Company. Such shares shall be purchased on Nasdaq Stockholm at a price that is within the registered price interval (spread) at any given time, meaning the interval between the highest bid price and the lowest ask price, and in other respects in accordance with the rules of Nasdaq Stockholm at any given time. The purpose of the repurchase of own shares is firstly to align the Company’s capital structure to the Company’s capital requirements and, where appropriate, to enable share transfers in conjunction with the financing of company acquisitions and other types of strategic investments and acquisitions. An additional objective is to facilitate hedging of costs and delivery in relation to the Performance Share Plan 2015 proposed under point 18.
The resolution of the Meeting in accordance with the Board’s proposal pursuant to this point 20 a) must be supported by shareholders representing at least two-thirds of the votes cast and the shares represented at the Meeting.
Proposal from shareholder
The shareholder Mahamed Abdi proposes that acquisition of own shares shall be made of not more than ten per cent of the total number of shares in the Company.
Point 20 b) – Resolution regarding authorization for the Board to decide upon the transfer of own shares
The Board proposes that the Meeting authorize the Board during the period until the next Annual General Meeting to decide, on one or more occasions, on the transfer of shares in the Company. The shares may only be transferred in conjunction with the financing of company acquisitions and other types of strategic investments and acquisitions, and the transfers may not exceed the maximum number of treasury shares held by the Company at any given time. Transfer of own shares shall be made either on Nasdaq Stockholm or in another manner.
In conjunction with the acquisition of companies or operations, transfer of own shares may be made with deviation from the shareholders’ preferential rights and at a price that is within the so-called spread (see above) at the time of the decision regarding the transfer and in accordance with the rules of Nasdaq Stockholm at any given time. Payment for shares transferred in this manner may be made in cash or through a non-cash issue or offsetting of claims against the Company, or on other specific terms. The reason for the Board’s authorization to waive the shareholders’ preferential rights is, where appropriate, to be able to transfer shares in conjunction with the financing of any company acquisitions and other types of strategic investments and acquisitions in a cost-efficient manner.
The resolution of the Meeting in accordance with the Board’s proposal pursuant to this point 20 b) must be supported by shareholders representing at least two-thirds of the votes cast and the shares represented at the Meeting.
Point 21 – Appointment of the Nomination Committee
The Nomination Committee proposes that the procedure for appointment of Nomination Committee for the Annual General Meeting 2016 shall be arranged in accordance with the following:
The Chairman of the Board shall, before the end of the second quarter of the financial year, contact the four largest holders of voting rights, besides the or those shareholders the Chairman of the Board may represent, which may appoint one person each that, together with the Chairman of the Board, shall constitute the Nomination Committee until the end of the next Annual General Meeting, or, where applicable, until a new Nomination Committee has been appointed. Where shareholders refrain from their respective right to appoint a member to the Nomination Committee, the right to appoint a member to the Nomination Committee shall pass on to the thereafter largest holder of voting rights which not yet have appointed or have had the right to appoint a member to the Nomination Committee. Euroclear Sweden AB’s list of shareholders on the last banking day in September and other reliable information being provided the company on such date, shall form the basis of the assessment of which holders of voting rights being the largest. Unless the Nomination Committee unanimous resolves to appoint another member as the Chairman of the Nomination Committee, the Chairman of the Nomination Committee shall be the member of the Nomination Committee being appointed by the largest holder of voting rights. The Nomination Committee shall be entitled to, following a unanimous resolution hereof, appoint a person as co-opt member to the Nomination Committee. Such co-opted member does not participate in the Nomination Committee’s resolutions. The names of the members of the Nomination Committee and the names of those having appointed them, shall be made public as soon as they have been appointed, however no later than six months before the next Annual General Meeting. No remuneration shall be paid to the members of the Nomination Committee.
If any of the shareholders having appointed a member to the Nomination Committee sells its shares in the company before the Nomination Committee has fulfilled its assignment, the member that has been appointed by such a shareholder shall, if the Nomination Committee so resolves, be replaced by a member to be appointed by the shareholder at that time being the largest shareholder following the shareholders being represented in the Nomination Committee. If any of the members of the Nomination Committee ceases to represent the shareholder having appointed that member, before the assignment of the Nomination Committee has been fulfilled, that member shall be replaced, if the shareholder so wishes, by a new representative appointed by that shareholder. The Nomination Committee is entitled to, if deemed appropriate and besides a co-opted member possibly appointed in accordance with above, co-opt a member to the Nomination Committee who is appointed by a shareholder who after the constituting of the Nomination Committee, has come to be among the four largest holders of voting rights. Such co-opted member does not participate in the Nomination Committee’s resolutions.
The Nomination Committee shall execute its assignment in accordance with the Swedish Corporate Governance Code (Sw. Svensk kod för bolagsstyrning) and other applicable rules. The assignment includes inter alia to present proposals on:
i) Chairman at Annual General Meeting;
ii) Chairman and other members of the Board of Directors;
iii) remuneration to non-executive members;
iv) remuneration to the Company’s auditor and election of auditor; and
v) where so deemed necessary, proposal to amend the instructions for the Nomination Committee.
Point 22 – Proposed resolutions by shareholder Thorwald Arvidsson regarding the following:
The shareholder Thorwald Arvidsson has requested that the following items shall be addressed at the Annual General Meeting.
Point 22 a) – Amendment of section 5 paragraph 2 in the articles of association
Amendment of section 5, paragraph 2 in the articles of association, to reflect that both Class A shares and Class B shares shall carry one vote each.
Point 22 b) – Removal of section 12 in the articles of association
If the resolution in accordance with point 22 a) above is passed, it is proposed that section 12 of the articles of association is removed.
Point 22 c) – Instruction to the Board of Directors to write to the Government
Instruction to the Board of Directors to write to the Government requesting the repeal of provisions in the Swedish Companies Act allowing for different voting rights for different classes of shares and that a pre-emptive obligation is enforced in public limited liability companies.
Point 22 d) – Instruction to the Board of Directors to establish a shareholders’ association
Instruction to the Board of Directors to take appropriate actions in order to, if possible, establish a shareholders’ association for the company’s shareholders.
Point 22 e) – Instruction to the Board of Directors regarding shareholder representatives in the Company’s Board of Directors
Instruction to the Board of Directors to prepare a proposal of a procedure for preparing small- and medium-sized shareholders representation in the Company’s Board of Directors.
Point 22 f) – Instruction to the Company’s Nomination Committee regarding the proposed candidates’ ethical standard
Instruction to the Company’s Nomination Committee to specifically regard questions connected with the proposed candidates’ ethical standard.
Stockholm in July, 2015
The Board of Directors of Elekta AB (publ)
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For further information, please contact:
Johan Andersson, Director, Investor Relations, Elekta AB
Tel: +46 702 100 451, e-mail: johan.andersson@elekta.com
Time zone: CET: Central European Time
Gert van Santen, Group Vice President Corporate Communications, Elekta AB
Tel: +31 653 561 242, e-post: gert.vansanten@elekta.com
Time zone: CET: Central European Time
The above information is such that Elekta AB (publ) shall make public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 07:30 CET on August 3, 2015.
About Elekta
Elekta is a human care company pioneering significant innovations and clinical solutions for treating cancer and brain disorders. The company develops sophisticated, state-of-the-art tools and treatment planning systems for radiation therapy, radiosurgery and brachytherapy, as well as workflow enhancing software systems across the spectrum of cancer care. Stretching the boundaries of science and technology, providing intelligent and resource-efficient solutions that offer confidence to both health care providers and patients, Elekta aims to improve, prolong and even save patient lives.
Today, Elekta solutions in oncology and neurosurgery are used in over 6,000 hospitals worldwide. Elekta employs around 3,800 employees globally. The corporate headquarters is located in Stockholm, Sweden, and the company is listed on NASDAQ Stockholm. Website: www.elekta.com.
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