Electrolux 2004 Annual Report Download - page 45
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Report by the Board of Directors for 2004
when the products are used. The stated Electrolux strategy is to
develop and actively promote increased sales of products with
lower environmental impact.
Mandatory permits and notification in Sweden and elsewhere
Electrolux operates 14 plants in Sweden. Permits are required by
Swedish authorities for eight of these plants, which account for
approximately 11% of the total value of the Group’s production. Six
plants are required to submit notification. The permits cover, e.g.,
thresholds or maximum permissible values for air and waterborne
emissions and for noise. No significant non-compliance with
Swedish environmental legislation was reported in 2004.
Manufacturing units in other countries adjust their operations,
apply for necessary permits and report to the authorities in accor-
dance with local legislation. The Group follows a precautionary pol-
icy with reference to both acquisitions of new plants and continu-
ous operations. Potential non-compliance, disputes or items that
pose a material financial risk are reported to the Group in accor-
dance with Group policy. These routines did not disclose any signif-
icant items during the year.
Electrolux products are affected by legislation in various markets,
principally involving limits for energy consumption (white goods)
and emissions (outdoor products powered by gasoline). Electrolux
continuously monitors changes in legislation, and product develop-
ment and manufacturing are adjusted well in advance to reflect
these changes.
Board of Directors’ activities in 2004
Seven ordinary and four additional Board meetings were held dur-
ing the year. Six of the ordinary meetings were held in Stockholm,
Sweden, and one in Hungary, where the Board visited the Group’s
production center for refrigerators, freezers and floor-care products.
In the course of the year, the Board reviewed the Group’s results
and financial position on an ongoing basis, as well as the outlook
presented by the President at each meeting. The Board also dealt
regularly with questions related to acquisitions and divestments,
establishment of new operations, investments and the Group’s
strategic direction, including strategies for branding, design, relo-
cation of purchasing and production as well as development and
launching of new products.
Remuneration committee
Seven meetings were held in 2004. Special consideration was
given to the new annual long-term share program and a new sup-
plementary pension plan for some of the Swedish members of
Group Management.
For more information, see Corporate Governance on page 88.
Audit committee
Three meetings were held in 2004. Key topics at these meetings
included review of the financial statements as well as review and
pre-approval of audit and permissible non-audit services provided
by the external auditor, and the scope and costs of these services.
For more information about the composition of the Board, the principles for the
working procedures of the Board, and the various committees, see the section
on Corporate Governance on page 88.
Nomination procedure for election of Board members
According to the nomination procedure for election of Board mem-
bers that was approved by the Annual General Meeting in April
2004, the Chairman of the Board shall contact at least three of the
largest shareholders during the fourth quarter of the year.
The shareholder representatives contacted were Anders Scharp
of Investor, Ramsay J. Brufer of Alecta Mutual Pension Insurance,
Marianne Nilsson of Robur Investment Funds and Carl Rosén of
Second Swedish National Pension Fund. These representatives
have held four meetings to evaluate the Board’s activities, the com-
position of the Board, Directors’ fees and possible requirements for
special expertise on the Board. They have jointly and under the
leadership of the Chairman prepared a proposal for members of
the Board of Directors and the remuneration to the Board of Direc-
tors which will be presented to the AGM for approval.
The names of the above shareholder representatives were made
public on October 20, 2004, in the Electrolux Interim report
July–September, 2004.
The names of the nominees and remuneration are given in the
written notice of the Annual General Meeting.