LensCrafters 2004 Annual Report Download - page 81

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As far as the first principle is concerned, the values laid
down in the Group’s Ethical Code commit all those
working for the Group to ensuring that all of the Group’s
activities are carried out: in compliance with all relevant
laws; within a framework of fair competition; with honesty,
integrity and propriety; and, respecting the legitimate
interests of shareholders, employees, customers,
suppliers, sales and financial partners as well as of the
communities in which the Group operates.
II. BOARD OF DIRECTORS
ROLE AND DUTIES
The Board of Directors plays a central role in
Luxottica’s Corporate Governance framework.
It is duly authorized and responsible for guiding and
managing the entire business, maximizing shareholder
value and ensuring that the expectations of other
stakeholders are met.
To this end, the Board approves all matters intended
to implement the Group’s strategy, except for those
matters which, pursuant to the by-laws of the
Shareholders’ Meetings, are expressly required to be
dealt with at a Shareholders’ Meeting, or which,
pursuant to the by-laws of the company in question,
are expressly required to be dealt with by it.
By virtue of a resolution dated July 27, 2004, the Board
of Luxottica resolved that certain significant matters
may only be approved by it, such as:
1. the Corporate Governance rules and guidelines for
the internal audit of the entire Group;
2. the Group’s organizational structure, including
whether its organizational, administrative and
accounting structures are appropriate;
3. the business, investment and development
strategy for the entire Group, based on the
proposals submitted by the Chief Executive Officer;
4. financial commitments and loans of a duration in
excess of twelve months;
5. the budgets of all companies within the Group;
6. the periodical reports of all companies within the
Group;
7. stock incentive schemes proposed at
Shareholders’ Meetings; the remuneration criteria
for senior management;
8. all transactions having significant economic, P&L
or financial impact, including: agreements of a
strategic nature with an economic value in excess
of Euro 30 million or which involve a liability lasting
for more than three years; acquisitions or
disposals of interests in companies or real estate
with a value in excess of Euro 2 million; and, the
issue of securities to third parties with a value in
excess of Euro 15 million.
APPOINTMENT
The current Board of Luxottica Group was appointed by
resolutions passed at the Shareholders’ Meetings held
on June 25, 2003 and September 14, 2004 respectively.
The resolutions were based on the company by-laws
currently in force, which do not contain a mechanism for
list voting.
The proposing shareholders made the CVs of the
individual candidates available to the meeting, in order to
enable shareholders to make an informed decision in
respect of their voting rights.
All Directors appointed to the Board have the
appropriate professional qualifications and experience
required to perform their duties efficiently and effectively.
COMPOSITION
On September 14, 2004, the Shareholders’ Meeting
established that there would be twelve members of
the Board.
The current Board will remain in office until the financial
statements for the fiscal year 2005 are approved, and
comprises the following Directors:
-Leonardo Del Vecchio: Chairman and Member of
the Human Resources Committee
- Luigi Francavilla: Vice Chairman
- Andrea Guerra: Chief Executive Officer and
Member of the Human Resources Committee
- Tancredi Bianchi: Member of the Internal Audit
Committee
- Mario Cattaneo
- Roberto Chemello
- Enrico Cavatorta
- Claudio Del Vecchio
CORPORATE GOVERNANCE