Shareholder Connivance

Lundin’s controversial operations in Sudan have been regularly discussed at Annual General Meetings. In 2001, when the company faced strong criticism, the shareholders endorsed Adolf H. Lundin decision to continue the operations in Sudan. The company’s role in Sudan and its handling of the consequences has since enjoyed the loyal backing of its shareholders. The AGMs of Petronas and OMV never discussed their controversial operations in Sudan.

Since 2012, PAX proposed several resolutions to Lundin’s AGM to bring the company with gave shareholders of Lundin numerous occasions to align the company’s policy and conduct with human rights. They were all defeated by an overwhelming majority.

March 2021, proposal to aligns the company’s legal defence strategy with its human rights policy, avoid any delays and immediately and unrestrictedly share with the Prosecution Authority of any information that is relevant to the investigation.

Also in March 2021, a proposal to disclose all costs of the legal defence.

Board recommendations to vote against the two shareholder proposals in 2021.

March 2020 proposals by Egbert Wesselink from PAX to the Annual General Meeting to claw-back management remunerations in case of misconduct, felony and actions that damage to the company; and to assess the financial and reputational risks and costs of the company’s confrontational legal strategy. Voted down with a 99% majority.

Board recommendations to vote against the 2020 shareholder proposals.

2019 shareholder proposals by Egbert Wesselink from PAX that the members of the Board of Directors resign and the CEO and senior management are dismissed. Rejected by app. 98% of registered shareholders.

Board recommendations to vote against 2019 shareholder proposals.

Proposals submitted by Egbert Wesselink from PAX in 2017 to allocate SEK 5 billion to remedy adverse human rights impacts in Sudan and defeated by a 99,84% majority of registered shareholders.

Board response to the 2017 shareholder proposals.

May 2013 resolution by Egbert Wesselink of PAX to implement the United Nations Guiding Principles on Business and Human Rights. Rejected by a majority of app. 97%.

Board of Directors recommendation to vote against the 2013 shareholder proposal.

May 2012 proposals by 1. Carina Lundberg Markow from Folksam and 2. Egbert Wesselink from PAX to 1. audit compliance of the company’s operations in Sudan with the UN Global Compact and the OECD Guidelines, and 2. investigate allegations about the company’s conduct in Sudan, cooperate with the Prosecution, and implement the UNGP. The proposal by Ms Markow was supported by a majority of independent shareholders, but overwhelmingly defeated nevertheless as the Lundin family held the majority of registered shares.

Board of Directors recommendation to vote against the 2012 shareholder resolutions, arguing that an independent investigation into the allegations would be detrimental to the work of the prosecutor, and that it fully cooperated with the prosecutor. Nonetheless, in 2014 the company finalised its own investigation in secret, that it refuses to share with the prosecution and its shareholders.


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