Volvo 2013 Annual Report Download - page 94

Corporate Governance Report
Signifi cant events
during 2013
The Swedish Corporate
Governance Code
AB Volvo’s shares are admitted to trading on
the NASDAQ OMX Stockholm and accordingly,
Volvo complies with NASDAQ OMX Stockholm’s
Rule Book for Issuers. As a listed company,
Volvo also applies the Swedish Corporate Gov-
ernance Code (the Code), which is available at
www.bolagsstyrning.se.
Between January 1, 2013 and December 31,
2013, Volvo did not deviate from any of the
regulations set forth in the Code.
This Corporate Governance Report was pre-
pared in accordance with the Swedish Annual
Accounts Act and the Code, and is separate
from the Annual Report. The report has been
examined by Volvo’s auditors and includes a
report from the auditors.
In January, AB Volvo signed an agreement
with the Chinese vehicle manufacturer Dong-
feng Motor Group Company Limited (DFG) to
acquire 45 percent of a new subsidiary of
DFG, Dongfeng Commercial Vehicles (DFCV),
which will include the major part of DFG’s
medium- and heavy-duty commercial vehicles
business.
During 2013, the Volvo Group continued the
renewal of its truck products ranges within
Volvo Trucks, Renault Trucks, UD Trucks and
VE Commercial Vehicles Ltd.
In October, the Board of Directors visited the
Group’s businesses in China and also plants
within DFCV’s businesses in China.
In September, a comprehensive Group-wide
effi ciency program linked to the strategies was
announced. The program encompasses both
reduction of white collar employees and con-
sultants and effi ciency enhancements in the
global industrial system.
In December, the Volvo Group decided to
sell Volvo Rents to the US private equity fi rm
Platinum Equity.
The governance and control of the Volvo Group
is carried out through a number of corporate
bodies. At the General Meetings of AB Volvo,
which is the Parent Company in the Volvo
Group, the shareholders exercise their voting
rights with regard to for example the composi-
tion of the Board of Directors of AB Volvo and
election of auditors.
An Election Committee, appointed by the
Annual General Meeting of AB Volvo, submits
proposals to the next Annual General Meeting
concerning the election of Board members,
Board Chairman and, when necessary, external
auditors, and proposals for resolutions con-
cerning fees to the Board and the auditors.
The Board is ultimately responsible for Volvo’s
organization and management of the opera-
tions. The duties of the Board are partly exer-
cised through its Audit Committee and its
Remuneration Committee.
In addition, the Board appoints the President
of AB Volvo, who is also the Chief Executive
Offi cer (CEO) of the Volvo Group. The CEO is in
charge of the daily management of the Group in
accordance with guidelines and instructions
provided by the Board.
Division of responsibilities and duties between
General Meetings, the Board of Directors and the
President are regulated inter alia by the Swedish
Companies Act, Volvo’s articles of association,
the Code and the Board’s work procedures.
Corporate
Governance Model
9090
CORPORATE GOVERNANCE REPORT 2013