LensCrafters 2006 Annual Report Download - page 79

ANNUAL REPORT ON
CORPORATE GOVERNANCE 2006 |79 <
fraudulently avoiding compliance with provisions of the Model. To this end, the Model serves the
following purposes:
• To make all those operating in the name and on behalf of Luxottica aware of the need to accurately
comply with the Model, the violation of which will result in severe disciplinary measures;
• To enforce the condemnation by the Company of any behavior inspired by a misunderstood
corporate interest which conflicts with laws, regulations, or, more generally, with the principles of
fairness and transparency upon which its activity is inspired;
• To inform about the serious consequences that the Company (and therefore all its employees,
managers and top management) may suffer from enforcement of the money penalties and
disqualifying sanctions as provided for by the Decree, and the possibility that such measures are
also ordered as an interim measure;
• To enable the Company to exercise constant control and careful supervision of the activities, so as
to enable it to react promptly if potential risks arise, and, if needed, to enforce the disciplinary
measures set out by the Model.
The Model is available at the Company’s website www.luxottica.com.
On November 6, 2006, the Supervisory Body provided under the Model was supplemented, as a
result of the resignation of one of its members. Consequently, as of today, this body comprised the
following persons: Internal Auditing Officer (Mr.Mario Pacifico), Chairman, the Human Resources
Manager Officer (Mr.Nicola Pelà) and a member of the Board of Statutory Auditors (Mr.Giorgio
Silva). The Supervisory Body reports to the Board of Directors, the Internal Control Committee and
to the Board of Statutory Auditors twice a year on the performed activity.
To perform its tasks, the Supervisory Body is endowed with a budget which enables it to make all
expenditure decisions required to fulfill its duties.
Sarbanes-Oxley Act. The compliance with the Sarbanes-Oxley Act (SOA) requirements, to which
Luxottica Group is also obliged as a foreign private issuer listed on the New York Stock Exchange
(NYSE), represents a significant motivating force for the Group in its process of constant
improvement of its internal control system.
In particular,in complying with the SOA,Luxottica has not only intended to implement a regulation,
but to take a real opportunity to effectively improve its administrative-financial governance and the
quality of its internal control system, in order to increase the systematic nature of this system, to
constantly monitor it and to render such system methodologically more defined and documented.
Luxottica is aware that the efforts made in defining an efficient internal control system, capable of
ensuring a complete, accurate and correct financial information, do not represent a single activity,
but rather a dynamic process which must be renewed and adapted to the evolution of the
business, the socio-economic context and the regulatory framework.
The targets of the control system were defined consistently with the requirements contained in the
SOA regulation, which makes a distinction between the following two elements:
•Controls and procedures to comply with the duty of information related to the consolidated
financial statements and Form 20-F (Disclosure controls and procedures-DC&P);
•Internal control system supervising the drawing up of the financial statements (Internal Control
Over Financial Reporting-ICFR).
The disclosure controls and procedures are meant to ensure that the financial information is