Cherry seeks new board members

The company suffered a board modification after two executives resigned amid corruption allegations.

Sweden.- Cherry AB is currently looking for additional board members after Anna Bergius and Claes Ruthberg communicated that they will part ways. The resignations come after the former CEO of the company was arrested on suspicion of insider trading.

Both Bergius and Ruthberg told Morten Klein, Cherry chairman, that they would resign from their positions, effective immediately. Following their departures, the board consists of four members and is dangerously close to the minimum of three that is required by the Articles of Association of the company. Cherry confirmed that Klein contacted the Nomination Committee to search for additional board members.

The company said in a statement that the decision was based on receiving a notice from the Swedish Economic Crime Authority, informing the two board members about the authority’s suspicion of crime committed by them in connection with the investigation that was initiated in May 2018 of alleged insider crime carried out by the former CEO, Anders Holmgren. “Both board members concluded that their decision is the best alternative for the company given the current situation,” said Cherry in the statement.

The Swedish authority raided Cherry’s offices on May 22nd and a few days later decided to arrest Holmgren on suspicion of insider trading. Chairman of the audit committee at Cherry, Gunnar Lind, has taken the acting president and chief executive role while the investigation takes place, but a new CEO is expected to be named by the end of the month.