Volvo 2009 Annual Report Download - page 60

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CORPORATE GOVERNANCE REPORT 2009
Annual General Meeting
Remuneration
Committee
Audit Committee
Business Areas Business Units
Shareholders
President
Group Executive
Committee
Auditors
The Volvo Group Corporate Governance Model
Board
Election
Committee
Corporate Governance Report
During 2009, the Board focused specically on adapting the Group’s operations and cost
structure to the signicantly weaker demand for the Group’s products. Furthermore, the Board
focused on the continued integration of the operations acquired during the last years and
issues relating to the continuous renewal of the Group’s product portfolio. In addition, the
Board focused on securing a strong liquidity position for the Group.
Corporate bodies in corporate
governance
The governance and control of the Volvo Group
is carried out through a number of corporate
bodies. At the Annual General Meeting, 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 pro-
poses candidates to serve as Board members,
Board Chairman and external auditors. The
Board is responsible for the Group’s long-term
development and strategy as well as controlling
and evaluating the company’s operations. In
addition, the Board appoints the President of
AB Volvo, who is also the Chief Executive Ofcer
(CEO). The duties of the Board are partly exer-
cised through its Audit Committee and its
Remuneration 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 differ-
ent bodies, the Group Executive Committee and
the business areas’ and business units’ Boards
of Directors. The Group Executive Committee
comprises those who report directly to the CEO.
The Group Executive Committee meetings,
which are led by the CEO, deal with Group-wide
issues and issues affecting more than one busi-
ness area/unit, and sharing of information con-
cerning the Group’s performance. The CEO or
another member of the Group Executive Com-
mittee is the Chairman of the Boards of all busi-
ness areas and business units, which are com-
prised mainly of other members of the Group
Executive Committee. The Boards of the busi-
ness areas and business units effect control
and follow-ups of business areas’ and business
units’ 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
been prepared. The Board’s report of the key
aspects of the company’s system for internal
controls and risk management regarding nancial
reports is included as a special section of this
Corporate Governance Report.
Between January 1, 2009 and December 31,
2009 Volvo did not deviate from any of the
regulations set forth in the Code.
This Corporate Governance Report does not
comprise a portion of the formal annual report
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