The governance of Diamyd Medical AB is primarily founded upon the Companies Act, the Articles of Incorporation and NASDAQ OMX's rules for issuers. Diamyd is also subject to the Swedish Code of Corporate Governance ("The Code") as of July 1, 2008. The Code is based upon the "comply or explain" principle, meaning that Diamyd is allowed to depart from individual rules provided that the omission is reported, and that the Company states and justifies the solution that it has chosen instead.
New rules for corporate governance came into effect on March 1, 2009. For the Company, the primary import is that the obligation to report its application of the Code according to the "comply or explain" model, and the obligation to provide a corporate governance report, are legally required beginning on September 1 2009, i.e. beginning with the current fiscal year. This corporate governance report refers to the fiscal year from September 1, 2008 through August 31, 2009. It was prepared by the Diamyd Board of Directors.