The December 2020 issue of the Swedish Shareholders Association’s magazine Aktiespararen contains an article regarding Kapatens’ group claims against Swedish public companies due to unpaid dividends in connection with redemption of preference shares. In the article, Johan Skog, partner at Kapatens, explains how the group claims are structured. Further, the Shareholders Association’s General Counsel Sverre Linton is interviewed.

– The Shareholders Association is positive of any structure that makes it possible for shareholders to get access to justice without risk of any costs or claims. It is also great if a legal uncertainty may be resolved. This issue also points towards another major problem; the limited possibilities for minor shareholders to establish contact with one another and to organize themselves because of the 500 rule. This rule must be amended to make it possible for minor shareholders to get involved and take initiative, says Sverre Linton.

The so called 500 rule means that public share ledgers only show shareholders who own more than 500 shares in a company. That makes it difficult to reach minor shareholders and for minorities to organize themselves against major shareholders.