BMW 2002 Annual Report Download - page 35

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
031 BMW Stock
034 Corporate Governance
042 Group Financial Statements
106 BMW AG Financial Statements
112 BMW Group Annual Comparison
114 BMW Group Locations
116 Glossary
120 Index
34
Background
The German Corporate Governance Code Commis-
sion appointed by the German Government present-
ed its Corporate Governance Code on 26 February
2002. In addition, the Transparency and Disclosure
law (TransPuG) came into effect on 25 July 2002.
This law requires the Management and Supervisory
Boards of companies listed in Germany to make a
declaration once a year about whether the German
Corporate Governance Code has been complied
with. Companies affected are also required to state
which of the recommendations of the Code have
not been applied.
Information about the BMW Group
Bayerische Motoren Werke Aktiengesellschaft (also
abbreviated to BMW AG) was founded in 1916. The
Companys registered office is located in Munich and
the Company is registered with the District Court of
Munich (Registrar of Companies) under the number
HRB 42243. The object of the Company is the
manufacture and sale of engines and all vehicles
equipped with engines. The Companys financial
year corresponds to the calendar year. BMW stock
comprises bearer shares each with a nominal value
of euro 1. The Board of Management is appointed
by the Supervisory Board. The Supervisory Board
consists of twenty members. Ten members of the
Supervisory Board are elected by the shareholders
and ten members are elected by employees.
The designation BMW Group covers BMW AG
and its subsidiaries.
Corporate Governance in the BMW Group
The Board of Management and Supervisory Board
of Bayerische Motoren Werke Aktiengesellschaft
believe that the recommendations and suggestions
contained in the German Corporate Governance
Code will contribute significantly to an enhancement
of the financial markets in Germany, in particular for
foreign investors.
We are certain that the implementation of the
code in Germany will establish standards for corpo-
rate governance which address the interests of
shareholders and other parties interested in the per-
formance of the enterprise. The German Corporate
Governance Code is particularly suited to achieve
this objective.
We are in favour of the recommendations and
suggestions contained therein and have developed
a corporate governance code for the BMW Group
taking account of the specific circumstances of the
BMW Group. In addition, the BMW Group has ap-
pointed a coordinator for all issues relating to cor-
porate governance who reports directly and regularly
to the Board of Management and Supervisory Board.
The full text of the Corporate Governance Code
of the BMW Group is provided on the following
pages. The code can also be obtained, along with
other shareholder information, on the internet under
www.bmwgroup.com/ir/.
Of course, exemplary corporate governance
is not achieved solely by conforming with rules, no
matter how important and appropriate they are.
Rules can only provide a framework for good and
responsible corporate governance. Ultimately, it is
a question of promoting trust both in and within
the enterprise.
For the BMW Group, corporate governance is
therefore an all-embracing issue affecting all areas
of the enterprise. Transparent reporting and a policy
of corporate governance aimed at the interests of
stakeholders are not new for the BMW Group. Coop-
eration between the Board of Management and the
Supervisory Board, in an atmosphere of commonly
shared trust and responsibility, has long been the
basis for managing the affairs of the BMW Group.
And furthermore: trust in others, responsibility for
ones actions and transparency have long been the
core pillars of our corporate culture. This corporate
culture is a vital factor for the success of the BMW
Group, both now and in the future.
Corporate Governance