Adidas 1998 Annual Report Download - page 76

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74 Report of the Supervisory Board
In the course of the financial year the members of the Supervisory Board were
regularly and extensively informed about the development of the Company and about
fundamental matters relating to corporate strategy and business transactions of major
importance by means of verbal and written reports from the Executive Board. In four
joint meetings with the Executive Board and in meetings of the General Committee of
the Supervisory Board, the prospects of the adidas-Salomon group as well as the current
business development of the major group companies were dealt with in detail. In addition
to the responsibilities prescribed by law and the Articles of Association, the Supervisory
Board acted in an advisory role in essential individual matters.
EXAMINATION OF As in the prior year, consolidated financial statements were prepared in compliance
FINANCIAL STATEMENTS with International Accounting Standards (IAS). Under the provisions of § 292a of the
German Commercial Code (HGB), these financial statements exempt the Company for
the first time from drawing up consolidated financial statements in accordance with the
requirements of German commercial law. The auditors, KPMG Deutsche Treuhand-
Gesellschaft, Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft, Frankfurt/Main, have
audited the consolidated financial statements and group management report, and also
the financial statements and management report of adidas-Salomon AG, and issued
unqualified opinions thereon. The financial statements, the management reports as well
as the audit reports of the auditors have been presented to the Supervisory Board.
The Supervisory Board has examined the consolidated financial statements, the
financial statements of adidas-Salomon AG, the management reports and the proposal
submitted by the Executive Board with respect to the appropriation of retained earnings
and – as no objections have been raised – has approved the results of the audit.
The financial statements submitted by the Executive Board for the year ended
December 31, 1998 have been approved by the Supervisory Board. The Supervisory
Board has expressed its agreement with the management report and especially with
the outlook for the future development of the Company. The financial statements are
thus approved.
The proposal submitted by the Executive Board with respect to the appropriation
of retained earnings has been approved.
The auditors attended the annual financial statements meeting of the Supervisory
Board and the meeting in August 1998 at which the financial statements for the first
half year were presented.
CHRONOLOGY OF On January 19, 1998, by way of a circular resolution pursuant to § 15 para. 6 of the
DISCUSSIONS AND Articles of Association, the Supervisory Board appointed Jean-François Gautier to the
RESOLUTIONS Executive Board of adidas-Salomon AG with immediate effect.
At the meeting of the Supervisory Board on March 4, 1998, Manfred Ihle was
appointed a member of the Executive Board effective July 1, 1998. At the same meeting
the Supervisory Board discussed the business situation of the Company in the past
and current financial year, expressing its approval of the main objectives being pursued
REPORT OF THE SUPERVISORY BOARD