The members of the Board of Directors are elected each year at the Annual Meeting for the period up to the end of the next Annual Meeting. In the light of the concentrated ownership structure there is no formally appointed election committee. The main shareholders are contacted by the Chairman of the Board well in advance of the Annual Meeting with regard to proposals for the composition of the Board of Directors. Other shareholders have the opportunity to present proposals to the Chairman of the Board, which should be made well before the summons is sent out.
At the 2010 Annual Meeting it was decided that the Board shall comprise nine members without deputies, all elected at the Annual Meeting. The members include persons linked to Hufvudstaden's largest shareholders, Lundbergs, as well as persons independent of these shareholders. The President is the only member of the Board who works operatively in the company.
The number of members elected at the meeting who are independent of the company and the company management, is eight. Of these, four members are also independent of the company's largest shareholders. Hufvudstaden thus satisfies the stipulations in the NASDAQ OMX Stockholm listing agreement as well as the Swedish Code of Corporate Governance with regard to requirements for independent board members.
Officials in the company attend the Board meetings as presenters.
During the 2010 operating year the Board met on seven occasions, of which one was a statutory meeting. The work of the Board follows rules of procedure adopted by the Board with regard to the undertakings of the Board and the President as well as the division of duties between the Board and the President.