All large shareholders, regardless of the specific ownership arrangements, appoint representatives to the boards of directors of the companies they own. The State is the largest shareholder in Finland. One way to exert influence is to nominate competent and experienced public officials to the boards of directors of state-owned companies. Boards of directors are appointed by the General Meeting.
The board of directors makes decisions on the company’s strategy, investments and other important matters. To ensure that a company's activities are in line with strategic interests related to state shareholdings, it is important that a person familiar with state interests is involved in the preparation of these decisions.
The State has had representatives on the boards of its unlisted companies for decades. Now, the State has also recognised the importance of having representatives elected to the boards of listed companies of strategic interest at the General Meeting. Solidium also aims to appoint persons in its inner circle to the boards of companies in its portfolio.
The State has appointed public officials who are familiar with the State’s objectives, principles and ownership strategy to the boards of directors of companies and has ensured that the proposed representatives have the competence and experience required for the task.
A public official on the board of a company can also talk to the chair of the board about the need to discuss an issue with the State as owner. This is done in accordance with the Limited Liability Companies Act and the principles of good governance, which means that discussions with the owner are always conducted by the chair of the board of directors or the executive management of the company.
When public officials serve as members of the boards of companies, they operate in accordance with the Limited Liability Companies Act and are on an equal footing with other members of the board of directors as representatives of all shareholders. Public officials are subject to the same obligations and responsibilities concerning confidentiality and good governance as other members.