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Finavia Corporation's Board of Directors completed its investigation into the company’s derivative losses

Press release
Published
14.11.2016 at 12:30
Finavia Corporation has decided to file an action for damages against its former CEO, Samuli Haapasalo. Finavia’s action for damages is related to structured interest derivative contracts signed by the company in 2011.

An investigation completed by the company’s Board of Directors in October 2016 revealed that there were deficiencies in the jurisdiction and reporting relations as well as related practices regarding the derivative contracts, among other things, at Finavia in 2011. Defining jurisdiction and reporting relationships and ensuring the functionality of processes are among the key tasks of a CEO.

On 31 May 2016, Finavia’s annual general meeting demanded that the Board of Directors conduct a further, thorough investigation and decide whether it would be necessary to file an action for the damages incurred to the company due to the derivative contracts signed in 2011.

Following the demands of the annual general meeting, the Board of Directors of Finavia Corporation conducted a further investigation into questions of responsibility related to the company’s derivative losses.

Based on the thorough investigation, the Board of Directors unanimously proposed that the annual general meeting make the decision to file an action for damages in court against former CEO Haapasalo.

According to the investigation, the 2011 Board of Directors of Finavia had advised the company executives at the time to look after the appropriateness of the company’s administration and the monitoring thereof. Some of the non-protective derivative contracts went against the financing policy approved by the Board.

According to the investigation, the non-protective derivative contracts were not reported to the 2011 Board. The investigation did not reveal sufficient grounds to file an action for damages against the 2011 Board.

Finavia’s annual general meeting decided to file the action according to the proposal on 4 November 2016.

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