Volvo 2010 Annual Report Download - page 146

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Remuneration
Committee
Audit Committee
Business Areas Business Units
Shareholders
President
Group Executive Committee
Auditors
The Volvo Group Corporate Governance Model
Board
Election CommiteeAnnual General Meeting
CORPOR ATE GOVERNANCE REPORT
During 2010, the Board focused specifically on the Group’s business development taking into
account the earlier uncertainty primarily on the North American and European markets and the
recovery that occurred in 2010 regarding demand for the Group’s products. In addition, the Board
focused on development of the Group’s operations ongoing in China, Japan and India.
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 Meeting,
the shareholders exercise their voting rights
with regard, for example, to the composition of
the Board of Directors of AB Volvo and elec-
tion of external auditors and as otherwise
stipulated in the Companies Act. Information
concerning the largets shareholders in AB Volvo
as of December 31, 2010 is provided in the
Board of Director’s report of Volvo on page 57.
The notice for Annual General Meetings
(and for Extraordinary General Meetings if
any) is, as from the Annual General Meeting
2011, made through advertisement in the
Post- and Inrikes Tidningar (Swedish Official
Gazette and on the company’s website).
Announcement that the notice has been pub-
lished is advertised in Dagens Nyheter and
Göteborgs-Posten.
An Election Committee, appointed by the
Annual General Meeting of AB Volvo, 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, for controlling and
evaluating the company’s operations and for
the other duties set forth in the Companies
Act. In addition, the Board appoints the Presi-
dent of AB Volvo, who is also the Chief Execu-
tive Officer (CEO). The duties of the Board are
partly exercised through its Audit Committee
and its Remuneration Committee. The CEO is
in charge of the daily management of the
Group in accordance 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 Com-
mittee 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 business area/unit, and sharing of
information concerning the Group’s perform-
ance. The CEO or another member of the Group
Executive Committee is the Chairman of the
Boards of all business areas and business
units, which are comprised 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’ financial develop-
ment, 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), which is available at
www.bolagsstyrning.se.
142
CORPORATE GOVERNANCE REPORT 2010