Corporate governance model
Unlisted core holdings
Our unlisted core holdings are always operated with independent P&L and balance sheet responsibility. This includes, among other things, financing on own merits free from any parent company guarantees.
The JCE Group always has the ambition to develop an own (i.e. JCE Group AB) action plan for each portfolio company and we exercise active ownership through Board representation and informal co-operation with management.
Furthermore, we believe in achieving re-aligned interests between owners and management through part-ownership by management (in the form of acquisition of shares). Board of Directors
As a base case, our ambition is to have a board in each portfolio company consisting of two JCE Group representatives and three external directors, whereof one is the Chairman. The JCE Group representatives shall contribute with financial expertise and ownership perspective, while we expect the external directors to have operational and/or industrial experience. It is of course important that all board members of our portfolio companies also have sufficient time available to fulfill their assignments. The Chairman is always expected to have a close dialogue with, and if necessary receive support from, the JCE Group.
Our ambition is to utilize the entire JCE Group network to facilitate recruitment of external board members. All external directors are expected to contribute to the development of the portfolio company through their own hands-on experience, industry expertise and personal networks.
The boards of our portfolio companies are expected to address issues related to strategy, capital structure, profitability and cost efficiency, among other things. This includes approval and follow-up on the implementation of the business plan developed by management. Corporate Management
We expect management in our portfolio companies to handle all operational and day-to-day issues. Management is also responsible for the development and implementation of each company’s business plan, to be approved by the Board of Directors.
On a case-by-case basis, we provide our portfolio companies with support primarily in matters of recruitment/strengthening of management team, financing issues and M&A related issues.
The JCE Group believes in encouraging and facilitating own investment/part-ownership by management through acquisition of shares. |