Background: Accounting and corporate scandals that took place in the 2000s in the United States and several European countries took off in the corporate governance debate. Many countries began to adopt rules designed to develop corporate governance and increase confidence in the business world. Sweden suffered like other countries of accounting scandals, and as a result of this came the Swedish Code of Corporate Governance to rebuild market confidence to the Swedish companies. The first of July 2005 the code was applied in the Stockholm Stock Exchange for all companies on the A-list and the O-list with market capitalization exceeding 3 billion i.e. companies included in the Large Cap. Purpose: The purpose of this study is to examine and analyze how companies on the OMX Stockholm Stock Exchange, Large Cap, deviates from the Swedish code and if they deviate from the same points in the code and how thoroughly these companies explains their deviations. I want to get an understanding of why the code exists and why the companies deviate from it and whether the code works as expected. Methodology: To examine the extent to which companies deviate from the code and which points that the companies differ from, I have studied and observed the companies' annual reports and corporate governance reports. Theoretical Framework: In this chapter, I have raised earlier research that deals with other codes and the principle comply or explain, and the reasons why companies choose to follow or deviate from the code. These studies took place in Germany and the UK.7Empirical foundation: The empirical data consists of annual reports and corporate governance reports of the surveyed 28 companies in the Large Cap from both 2010 and 2011. Conclusions: The conclusion of this study is that the ownership structure is a contributing factor to why companies choose to deviate from the code. Companies with a concentrated ownership tend to deviate from the code. I have also noticed that these companies are owned by Industrivärden and Investor. The companies are also characterized by having strong family owners who own more than 30% of the shares, the owners usually want to have control over the company and that are why they differ from the Swedish Code.