Swedbank CEO under pressure as investors not ready to grant freedom from liability

Sweden's AMF, the fifth largest owner of Swedbank shares, said it would not vote to grant the bank's CEO, Birgitte Bonnesen, freedom from liability for the 2018 fiscal year at an annual general meeting later on Thursday.

Freedom from liability is a special feature of Swedish company law and a mandatory vote for Swedish companies. Granting freedom from liability would limit the ability to seek legal action against management or board members at a later date.

AMF, which owns a 4.4 per cent stake in Swedbank, said however that it would not vote against granting the board freedom from liability for the year.

"After yesterday's dramatic development, with the Economic Crimes Authority announced it had widened its suspicions concerning serious criminal offences, we have reached the conclusion that we cannot at present grant the company's CEO freedom from liability for 2018," the pension fund manager said in a statement.