BMW 2003 Annual Report Download - page 51

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
12 A Review of the Financial Year
29 Outlook
30 Financial Analysis
44 Risk Management
047 BMW Stock
050 Corporate Governance
054 Group Financial Statements
118 BMW AG Principal Subsidiaries
120 BMW Group 10-year Comparison
122 BMW Group Locations
124 Glossary, Index
50
Background
On 21 May 2003, the Government Commission on
the German Corporate Governance Code approved
changes to the German Corporate Governance
Code.The amended version of the Code was posted
in the electronic Federal Gazette on 4 July 2003.
Management and supervisory boards of com-
panies listed in Germany are required by law (§161
German Stock Corporation Act) to report once a year
whether the Corporate Governance Code (in the
relevant version) has, and is being, complied with.
Companies affected are also required to disclose
which of the recommendations of the Code have
not been or are not being applied.
Corporate governance in the BMW Group
Corporate governance in the BMW Group is 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 well-established traditions within the BMW Group.
Cooperation 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. The underlying corporate culture at
BMW
is founded upon the principles of transparency,
placing trust in others and taking responsibility for
one’s own actions.
The Board of Management and Supervisory
Board of Bayerische Motoren Werke Aktiengesell-
schaft believe that the recommendations and
suggestions contained in the German Corporate
Governance Code contribute to an enhancement
of the financial markets in Germany, in particular for
international investors. The implementation of the
Code in Germany has established standards for
corporate governance which address the interests
of shareholders and other stakeholders. The German
Corporate Governance Code is especially suited to
achieve this objective.
The Board of Management and Supervisory
Board 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. The aim is to provide shareholders
and other stakeholders with a comprehensive stand-
alone document covering the corporate governance
practices applied by the BMW Group.
The Corporate Governance Code of the BMW
Group can be obtained, along with other share-
holder information, such as notifications pursuant to
§15a of the German Trade Securities Act (Directors’
Dealings) from the BMW Group website. Interested
parties can also find general information about the
Group, up-to-date analysts’ reports and all financial
publications of the Group at www.bmwgroup.com/ir/.
A coordinator responsible for all corporate
governance issues reports directly and on a regular
basis to the Board of Management and Supervisory
Board.
Declaration of Compliance issued
The Board of Management and Supervisory Board
of BMW AG issued a Declaration of Compliance,
as required by law (§161 German Stock Corporation
Act), for the first time on 3 December 2002.
At the joint meeting held on 2 December 2003,
the Board of Management and Supervisory Board of
BMW AG issued the Declaration of Compliance with
the new version of the German Corporate Governance
Code, applicable with effect from 4 July 2003.
At the same time, the Corporate Governance
Code of the BMW Group was amended to bring it
into line with the new version of the German Cor-
porate Governance Code and posted, together with
the Declaration of Compliance, on the Internet.
Corporate Governance