Evaluation of Independence

Independence of Board Directors

Konecranes’ Board has evaluated the independence of the Board members in accordance with the Corporate Governance  Recommendation. The recommendation requires a majority of the Board members to be independent. On the basis of the evaluation, seven of the eight Board members were deemed independent of the Company. These Board members do not have any other relationship of material substance with Konecranes other than that of Board membership.

The Chairman of the Board, Mr. Stig Gustavson, is deemed dependent of the Company, as he was the President and CEO of the Company until 17 June, 2005, and therefore not independent as the Corporate Governance Recommendation considers a Board member to be dependent if he/she has held a position in the Company during the last three years prior to the inception of the Board membership. 

All Board members are independent of all significant shareholders of the Company. According to the Corporate Governance Recommendation, a significant shareholder refers to a shareholder who holds at least ten percent of all the shares or of the aggregate votes in the Company.