Aviva PLC
26 April 2006
News release
26 April 2006
DELTA LLOYD: CORPORATE GOVERNANCE
In October 2004 a change was made to Dutch law which ensured that supervisory
board directors in Dutch companies are elected by a company's shareholders, who
vote on nominations made by the supervisory board and the works council. Under
the previous system supervisory board directors appointed their own successors.
Unless shareholders vote to 'disapply' it, this law applies to all Dutch
companies with supervisory boards. It was enacted by the Dutch parliament as a
part of the developing agenda for changing corporate governance in the
Netherlands, which Aviva supports.
Delta Lloyd, Aviva's Dutch subsidiary, takes the view that this change should
not be applied. It has begun proceedings against Aviva in Amsterdam to persuade
the court to allow Delta Lloyd to retain its previous structure, which Delta
Lloyd says was originally agreed in 1973, when Commercial Union plc first
acquired Delta Lloyd, and which it claims was subsequently restated by Aviva.
Delta Lloyd claims that the agreement can never be unilaterally terminated and
that Aviva is legally bound to support Delta Lloyd's position. Aviva disputes
these claims. The Amsterdam court will rule on this in due course.
This matter relates to a difference of opinion between Aviva and Delta Lloyd
about the corporate structure of Delta Lloyd. Aviva does not expect this issue
to have any adverse impact on the financial or operational performance of Delta
Lloyd.
- ends -
Enquiries:
Analysts:
Charles Barrows, investor relations director +44 (0)20 7662 8115
Nicole Marques, investor relations manager +44 (0)20 7662 8302
Media:
Sue Winston, head of group media relations +44 (0)20 7662 8221
Vanessa Booth, group media relations manager +44 (0)207 662 2482
Rob Bailhache, Financial Dynamics +44 (0)20 7269 7200
Notes to editors:
• Dutch companies of Delta Lloyd's size are obliged to
have an independent supervisory board whose role is to supervise and advise the
executive board. Under the structure applicable to Delta Lloyd, the supervisory
board is also the body responsible for appointing and dismissing the executive
board.
• Aviva is the world's sixth largest insurance group
based on gross worldwide premiums and market capitalisation (at 31 December
2004), and is one of the leading providers of life and pensions to Europe, with
substantial positions in other markets around the world.
• Aviva's principal business activities are long-term
savings, fund management and general insurance, with worldwide total sales of
£35 billion and assets under management of £317 billion at 31 December 2005.
• The Aviva media centre at www.aviva.com/media includes
images, company and product information and a news release archive.
This information is provided by RNS
The company news service from the London Stock Exchange
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