Ericsson's shareholders rebuke board at AGM over handling of Iraq probe

Shareholders representing more than 10% of Ericsson shares voted against discharging board members of liability for the company's actions during the previous year at the group's annual general meeting on Tuesday in a rare rebuke for corporate leadership.

Shareholders representing more than 10% of Ericsson shares voted against discharging board members of liability for the company's actions during the previous year at the group's annual general meeting on Tuesday in a rare rebuke for corporate leadership. Under Swedish law, if board members are not discharged of their liabilities for the previous year by shareholders owning at least 10% of the stock they can be sued by the company and its investors.

Shareholders, however, approved a proposal to reappoint the CEO and the board. Ericsson has been under scrutiny by the U.S. Department of Justice and from shareholders for not properly disclosing that a 2019 internal investigation had found the company may have paid militant organisations in Iraq.