26th Apr 2006 11:15
Aviva PLC26 April 2006 News release 26 April 2006 DELTA LLOYD: CORPORATE GOVERNANCE In October 2004 a change was made to Dutch law which ensured that supervisoryboard directors in Dutch companies are elected by a company's shareholders, whovote on nominations made by the supervisory board and the works council. Underthe previous system supervisory board directors appointed their own successors. Unless shareholders vote to 'disapply' it, this law applies to all Dutchcompanies with supervisory boards. It was enacted by the Dutch parliament as apart of the developing agenda for changing corporate governance in theNetherlands, which Aviva supports. Delta Lloyd, Aviva's Dutch subsidiary, takes the view that this change shouldnot be applied. It has begun proceedings against Aviva in Amsterdam to persuadethe court to allow Delta Lloyd to retain its previous structure, which DeltaLloyd says was originally agreed in 1973, when Commercial Union plc firstacquired Delta Lloyd, and which it claims was subsequently restated by Aviva.Delta Lloyd claims that the agreement can never be unilaterally terminated andthat Aviva is legally bound to support Delta Lloyd's position. Aviva disputesthese claims. The Amsterdam court will rule on this in due course. This matter relates to a difference of opinion between Aviva and Delta Lloydabout the corporate structure of Delta Lloyd. Aviva does not expect this issueto have any adverse impact on the financial or operational performance of DeltaLloyd. - ends - Enquiries: Analysts: Charles Barrows, investor relations director +44 (0)20 7662 8115Nicole Marques, investor relations manager +44 (0)20 7662 8302 Media: Sue Winston, head of group media relations +44 (0)20 7662 8221Vanessa Booth, group media relations manager +44 (0)207 662 2482Rob Bailhache, Financial Dynamics +44 (0)20 7269 7200 Notes to editors: • Dutch companies of Delta Lloyd's size are obliged tohave an independent supervisory board whose role is to supervise and advise theexecutive board. Under the structure applicable to Delta Lloyd, the supervisoryboard is also the body responsible for appointing and dismissing the executiveboard. • Aviva is the world's sixth largest insurance groupbased on gross worldwide premiums and market capitalisation (at 31 December2004), and is one of the leading providers of life and pensions to Europe, withsubstantial positions in other markets around the world. • Aviva's principal business activities are long-termsavings, 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 includesimages, company and product information and a news release archive. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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