Three months after the board of Cherry AB fired its chief executive and president, Anders Holmgren, amid insider trading accusations, two more council members resigned from their assignments – Anna Bergius and Claes Ruthberg.
According to the company’s press release, a notice from the Swedish Economic Crime Authority informed the board of directors about their involvement in the alleged insider crime. Following the latest news about the investigation, both board members stepped down immediately, saying it was the best alternative for the company.
The Board Strikes Back
Under new circumstances, the Cherry Board of Directors has pretty much shrunk in size and now consists of only four members. Morten Klein, the company’s chairman has already initiated the search for additional executives, whose number shall comprise of at least three and not more than nine individuals.
The Nomination Committee is yet to issue an official application, since its main objectives include the making of proposals in respect of the chairman at general meetings. The representatives of the committee are the three largest shareholders in terms of voting rights listed in the shareholders’ register, maintained by Euroclear Sweden.
The Investigation Continues
Cherry’s offices were raided on May 22nd, when the Economic Crime Authority carried out a thorough investigation that led to Holmgren’s arrest. Shortly after, the company appointed Gunnar Lind as chairman of the audit committee, who still acts as president and chief executive.
Klein also announced that the search for a permanent CEO could be concluded by the of August 2018, and praised Lind’s leadership, saying that Cherry’s second-quarter financial results have exceeded the board’s expectations.
Established in 1963, Cherry has spread its operations to five different business areas: online gaming, game development, online marketing, gaming technology, and restaurant casino. The establishment employs approximately 1,400 people and has about 9,250 shareholders, since it’s listed on the Nasdaq Stockholm exchange.
Source:
“Two board members have today resigned from the Cherry AB (publ) board of directors”, cherry.se, August 24, 2018.
coolsongss
5 years ago
Oh, I never knew that Cherry was such an old and established company. The original business is not mentioned, but I believe that it was not a cherry farming :) Anyway, if the original company business was not related to sportsbetting either, then they really surprisingly diversified their business. Cherry casinos...
Oh, I never knew that Cherry was such an old and established company. The original business is not mentioned, but I believe that it was not a cherry farming :) Anyway, if the original company business was not related to sportsbetting either, then they really surprisingly diversified their business. Cherry casinos were getting bigger by adding and merging some brands, recently. I am wondering how this event would affect their business, probably in a good way, right ? :)
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Mojo Jojo
5 years ago
Sometimes movies potrait the real life situation, the best examples are the business type of movies, if the director of a company is dirty, the odd is great a few of his employees are dirty as well, afraid of losing their job or just greedy. At the other hand, this could also a setup of a jealous co-worker, the truth sometimes...
Sometimes movies potrait the real life situation, the best examples are the business type of movies, if the director of a company is dirty, the odd is great a few of his employees are dirty as well, afraid of losing their job or just greedy. At the other hand, this could also a setup of a jealous co-worker, the truth sometimes might stupider than you think. I guess we will never know what really the reason but then again, this issue won't affect most of us.
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TrufflePiggie
5 years ago
I guess everyone needs to go through hard times once in a while…
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