Volvo 2005 Annual Report Download - page 76

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72 Volvo Group 2005
Corporate bodies in corporate
governance
T h e g ove rnanc e an d c ontr ol o f the Volvo Gr oup
is carried out through a number of corporate
bodies. At General Meetings, the shareholders
exercise their voting rights with regard, for
example, to the composition of the Board of
Directors of AB Volvo and election of external
auditors. An Election Committee proposes
candidates to serve as Board members, Board
Chairman and external auditors. The Board is
responsible for the Group’s long-term devel-
opment and strategy as well as controlling and
evaluating the company’s daily operations. In
addition, the Board appoints the President of
AB Volvo, who is also the Chief Executive
O f fic er (CEO). T he dut ie s of the Bo ard ar e
partly exercised through its Audit Committee
an d i t s Re mun er at io n C o mm ittee . Th e C EO is
in ch arg e of t he d ail y m ana gem ent of th e
Group in accordance with guidelines and
instructions provided by the Board. The presi-
dents of the Group’s eight business areas
report to the CEO.
Swedish Code of Corporate
Governance
Volvo applies the Swedish Code of Corporate
Governance (“the Code”).
Between July 1, 2005 and December 31,
2005 Volvo did not deviate from any of the
Code’s regulations that were applicable during
this period. With reference to Swedish
Corporate Governance Board’s statement
regarding a transition solution for the Code’s
rules about internal controls for financial
reporting, the Board’s report on internal con-
trol in accordance with Section 3.7.2 of the
Code, within the scope of this corporate gov-
ernance report, is limited to a description of
how internal control is organized without mak-
ing any statement about how well it functions
and without a review by the auditors.
This corporate governance report has been
examined by the company’s auditors.
Election Committee
The Election Committee is the shareholders’
body responsible for submitting to the Annual
General Meeting the names of candidates to
serve as Chairman and other members of the
Board, the fees to be paid distributed among
Corporate
Governance
Report