Corporate governance refers to the rules and structure established for the efficient management of a limited liability company’s operations. Ultimately, the purpose of corporate governance is to accommodate the shareholders’ demand for returns and all stakeholders’ need for information regarding the Company and its development.
The Swedish Code of Corporate Governance (the “Code”) stipulates what is good practice on the Swedish stock market for all Swedish limited liability companies listed for trading on a regulated market in Sweden. The Code is based on the “comply or explain” principle, which means that a company can deviate from the Code’s norms if such deviations are satisfactorily explained. Possible deviations will be announced and explained by Tethys Oil in the yearly corporate governance report. Tethys Oil expects that the Code will be adhered to in its entirety and, accordingly, that no deviations will have to be explained.