Volvo 2007 Annual Report Download - page 76
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Please find page 76 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Corporate bodies in
corporate governance
The governance and control of the Volvo
Group is carried out through a number of cor-
porate bodies. At the Annual General Meet-
ing, the shareholders exercise their voting
rights with regard, for example, to the com-
position 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 exter-
nal auditors. The Board is responsible for the
Group’s long-term development and strategy
as well as controlling and evaluating the com-
pany’s operations. In addition, the Board
appoints the President of AB Volvo, who is
also the Chief Executive Offi cer (CEO). The
duties of the Board are partly exercised
through its Audit Committee and its Remu-
neration Committee. The CEO is in charge of
the daily management of the Group in accord-
ance with guidelines and instructions provided
by the Board.
The CEO is in charge of the daily manage-
ment of the Group through primarily two dif-
ferent bodies, the Group Executive Commit-
tee and the business areas’ and business
units’ Boards of Directors. The Group Execu-
tive Committee comprises those who report
directly to the CEO. At year-end 2007, there
were 18 Group Executive Committee mem-
bers including the CEO. The Group Executive
Committee comprised Presidents of the
Group’s business areas as well as President
of Nissan Diesel and the President of Volvo
Powertrain business unit, who is also the
Senior Vice President Technology for the
Volvo Group. The Group Executive Committee
also includes the Executive Vice President,
who is also the Deputy CEO, the Chief Financial
Offi cer and Heads of the Group’s staff units.
Meetings, which are led by the CEO, deal with
Group-wide issues and issues affecting more
than one business area/unit, and supply infor-
mation concerning the Group’s performance.
The CEO or another member of the Group
Executive Committee is the Chairman of the
Board for the Boards of all business areas
and business units and these comprise mainly
of other members of the Group Executive
Committee. The Boards of the business areas
and business units effect control and follow-
ups of business areas’ and business units’
fi nancial development, business plans and
goals as well as make decisions regarding, for
example, investments.
Swedish Code of Corporate Governance
Volvo applies the Swedish Code of Corporate
Governance (the Code), in accordance with
which this Corporate Governance Report has
Corporate Governance Report
During 2007, the Board focused specifi cally on issues pertaining to
integration of new operations, the introduction of new products and
development of the Group’s operations in Asia. The Board also visited
Volvo’s facilities in Russia.
Annual General Meeting
Remuneration
Committee
Audit Committee
Business Areas Business Units
President
Group Executive
Committee
Auditors
The Volvo Group Corporate Governance Model
Board
Shareholders
Election
Committee
72 Corporate Governance 2007