9.2.2.2 Employee representatives

Other members of the board may be employee representatives, which is regulated in the Board Representation (Private Sector Employees) Act1 (BRA). If a company has 25 employees or more, the employees of that company are entitled to two positions on the board of directors. And if a company has one thousand employees or more, the employees are entitled to three representatives on the board of directors, according to section 4 BRA.2 In addition, they are entitled to one alternate for each position as well. However, the employee representatives may not outnumber the other members of the board of directors. The representatives of the employees are equated with the other members of the board of directors, unless otherwise mentioned in the Swedish Companies’ Act or in the Board Representation Act (section 8: 2 SCA). An appointment or change in the composition of the board only takes effect from the date the Swedish Companies Registration Office has received the notification or on a later date stated in the decision on which the notification is based (section 8: 13 SCA).