BMW 2013 Annual Report Download - page 10

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Board members and other related parties as defined by IAS 24, including close relatives and intermediary
entities, are examined on a quarterly basis.
We endeavour to assess and continuously improve the efficiency of the work performed by the Super visory
Board and its committees. The Chairman of the Audit Committee and myself are therefore always glad to
receive comments and suggestions for improvement from Supervisory Board members. The formal examina-
tion
of the Supervisory Board’s efficiency is also treated once each year as a separate agenda point for dis-
cussion, for which preparations are made with the aid of a questionnaire.
Each of the five Supervisory Board meetings in 2013 was attended on average by over 95 % of its mem-
bers, a fact that can be tied in to the analysis of attendance fees for individual members, as disclosed in
the Compensation Report. No member of the Supervisory Board was absent at more than two meetings
during their period of office. Presiding Board and committee meetings were fully attended in the vast
majority of cases.
Description of Presiding Board activities and committee work In order to work more efficiently and
prepare complex issues and decisions with greater thoroughness, the Supervisory Board has established a
Presiding Board and several committees. A description of the duties, composition and work procedures of
these committees is provided in the Corporate Governance Report.
The relevant committee chairpersons provided timely and comprehensive accounts of the work of the
Presiding Board and committees and I personally brought the representatives of the shareholders up to date
about the work of the Nomination Committee.
In a total of four meetings, the Presiding Board focused mainly on preparing topics for the meetings of
the full Supervisory Board, unless this fell under the remit of one of the committees. Complex issues, such as
the Long-term Business Forecast and the Annual Strategic Review, were dealt with on the basis of written
and oral reports provided by Board of Management members and senior department heads. The Head of
Financial Services, for instance, reported to us on segment strategy, business developments, credit risks
and leasing vehicle residual value risks as well as providing us with detailed information on the current status
of various strategic projects. The Presiding Board selected further topics of discussion for Supervisory Board
meetings and made suggestions to the Board of Management regarding items to be included in its reports to
the full Supervisory Board.
The Audit Committee held four meetings and three telephone conference calls during 2013. The Interim
Financial Reports were discussed with the Board of Management in those telephone conference calls, prior
to their publication. Representatives of the external auditors were present during the telephone conference
call held to present the Interim Financial Report for the six-month period ended 30 June 2013. The report
had been subjected to review by the external auditors.
The Audit Committee meeting held in spring 2013 was primarily dedicated to preparing the Supervisory
Board meeting at which the financial statements were examined. Prior to proposing KPMG AG Wirt schafts-
prüfungs gesellschaft for election as Company and Group auditor at the 2013 Annual General Meeting, we
obtained a Declaration of Independence from KPMG.
The Audit Committee also considered the scope and composition of non-audit services, including tax
advisory services provided by KPMG entities to the BMW Group. There were no indications of conflicts of
interest, grounds for exclusion or lack of independence on the part of the auditor.