9.3.1 Person building block

The person building block has strong and weak features. The SCCG distinguishes two types of independence: independence from the company and its executive management and independence from major shareholders. All factors that may give cause to the board member’s independence must be considered in the assessment of independence from the company and its executive management. The SCCG offers seven relationships or circumstances, not including shareholdings, that must at least be considered. This methodology does not focus on independence in form, but on independence in fact and in appearance, which is good. However, the second type of independence focuses solely on independence from major shareholders. The assessment of independence is well developed, but the distinction between the two types of independence is a very weak point in the Swedish person building block. If a relationship or circumstance impairs independent judgement it should in any case result in the label non-independent.