Volvo 1998 Annual Report Download - page 27

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25
Board of Directors and Management
Lars Ramqvist, age 59, former Chief Executive Officer of Ericsson, was elected
as a new member and Vice Chairman of the Board at the Annual General
Meeting, April 22, 1998. Finn Johnsson, age 52, President of Mölnlycke Health
Care AB, Sweden, was also elected member of the Board. Björn Svedberg
resigned his position as member of the Board.
Staffan Jufors, age 46, former President of Volvo Car Components Corporation,
Divison Body Components, in Olofström, became President of AB Volvo Penta
in April 1998 and member of the Group Executive Committee. On May 1, 1998,
Tryggve Sthen, age 46, took over as President of Volvo Construction Equipment
and member of the Group Executive Committee. Tryggve Sthen was former
Vice President of Volvo Construction Equipment.
On October 15, 1998, Stefan Johnsson, age 39, former President of Volvo’s
in-house bank, Volvo Group Finance Sweden AB, was named new member of
the Group Executive Committee, responsible for strategy and business develop-
ment, and as Chief Financial Officer as of January 1, 1999. Jan Engström, age
48, former Chief Financial Officer of AB Volvo succeeded Björn Larsson as
President of Volvo Bus Corporation as of December 31, 1998.
Dividend
The Board proposes a dividend for 1998 to the Annual General Meeting of SEK
6.00 per share, corresponding to SEK 2,649 M. The 1997 dividend was SEK
5.00 per share.
A divestment of Volvo Cars will provide the Group a strong financial position.
The Board has earlier expressed its ambition to expand in the field of commer-
cial products. This expansion will be intensified. The Board sees a number of
possibilities for additional acquisitions and, as a result, a need for financial
readiness. Should the Board in a future assessment of the Group’s long-term
capital requirement consider that financial net assets exceed needs, the Board,
as stated earlier, will propose that this surplus be transferred to the shareholders.
The best method to accomplish this, in the opinion of the Board, is repurchase
of own shares and expects that the Swedish authorities will accelerate the
process of making this action possible.
Volvo’s Board of Directors consists of
eight members elected by the sharehold-
ers at the Annual General Meeting, plus
three members and two deputy members
appointed by employee organizations. The
President is a member of the Board.
During 1998 the Board held six regular
meetings, in addition to which eight
special meetings were held.
The Board has adopted procedures for
its internal activities that contain rules
pertaining to the number of Board
meetings, matters to be handled at
regular meetings of the Board, and duties
incumbent on the Chairman.
The Board has also issued written
instructions specifying when and how
information that is required to enable the
Board to evaluate the Company’s and
Group’s financial position is to be
reported to the Board, as well as the
distribution of work between the Board
and the President, and the order in which
the Executive Vice Presidents are to
substitute for the President.
During the year the Board reviewed the
economic and financial position of the
Company and Group on a regular basis.
The Board also regularly dealt with
matters involving divestments, acquisi-
tions, the establishment of new oper-
ations, and matters related to investments
in product renewal and product develop-
ment in the Group’s different business
areas.
Report on Board activities
during 1998