Corporate Governance

Paradox Interactive AB (publ) is a Swedish public limited liability company and is governed based on Swedish law and internal rules and regulations.

The Swedish Code of Corporate Governance is applicable for Swedish companies with shares listed on a regulated market in Sweden. Nasdaq First North Growth Market where the company is listed is not a regulated market but requires companies to apply the Code. Companies must not comply with all rules in the Code, and has the option to apply alternative solutions believed to better fit their purposes, as long as any discrepancies are reported and the alternative solution is described and reasons behind it explained (the principle of ”comply or explain”) in the corporate governance report.

Auditors

The auditor shall review the annual report and accounts, and the work conducted by the CEO and board. Following the end of each financial year, the auditor presents a review report and a group audit report to the AGM.

According to the articles of association of Paradox, the company shall appoint a maximum of two auditors with or without a maximum of two deputies or a registered audit company.

Grant Thornton is the auditor of Paradox, with Carl Niring as the auditor in charge.

Internal Control

The company has not established a special function for internal audit. Instead, the Board undertakes the task.

The internal control includes control of the Paradox organization, procedures and activities. The aim is to ensure a reliable and accurate financial reporting, that the company and group’s financial statements are prepared in accordance with the law and applicable accounting standards, and that other requirements are followed.

The internal control system also aims to monitor the compliance with the company’s policies, principles and instructions. In addition, the protection of the company’s assets is monitored, and that the company’s resources are used in a cost efficient and timely manner.

Furthermore, internal control is conducted through evaluation of implemented information and business systems, and through risk analysis.