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Orkla’s Corporate Assembly to be discontinued

Karl Otto Tveter, Executive Vice President Legal Affairs at Orkla ASA

Karl Otto Tveter, Executive Vice President Legal Affairs at Orkla ASA

Orkla’s General Meeting has authorised the Board of Directors to discontinue Orkla’s Corporate Assembly.

The Corporate Assembly will be discontinued after it has conducted this spring’s elections of Orkla ASA’s Board members and Board Chair. The meeting is scheduled to be held on 21 May 2013.

The company and the employee organisations have concluded an agreement to discontinue the Corporate Assembly of Orkla ASA  and instead change the employees’ representation on the Board of Directors of Orkla ASA. Under the agreement, one of the present two employee-elected observers will change status and become a Board member, and the system of a contact committee in each of the business areas will be further developed. The agreement has been approved by the Industrial Democracy Board.

“Orkla is currently undergoing a phase of change with a view to becoming a more pure play branded consumer goods company, and the Group’s business model and structure are being refocused. This process is a natural point of departure for adapting our corporate democracy system and the arenas for employee participation,” says Karl Otto Tveter, Executive Vice President Legal Affairs at Orkla ASA.

Orkla’s Corporate Assembly has consisted of 21 members, seven of whom are elected by and from among the employees of Orkla ASA and subsidiaries in Norway, Sweden and Denmark. The Board of Directors of Orkla ASA comprises 10 members, three of whom and two observers are elected by and from among the employees. When the Corporate Assembly is discontinued, the Board of Directors will be expanded to 11 members, four of whom will be elected by and from among the employees. In addition, the employees will be entitled to have an observer on the Board. Three of the Board members will be elected from Norway, one Board member from Sweden and the observer will be elected from Denmark.

“Through the new structure, the employees will be ensured greater representation on Orkla’s Board of Directors, and will be more closely linked to the operational companies through the establishment and development of contact committees,” says Karl Otto Tveter.