TomTom 2005 Annual Report Download - page 32

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Management฀Board฀and฀its฀individual฀members฀will฀be฀
more฀meaningful฀after฀the฀Annual฀Report฀2005฀has฀
been฀discussed฀in฀the฀General฀Meeting฀of฀
Shareholders฀of฀April฀2006.฀We฀will฀apply฀this฀best฀
practice฀provision฀in฀the฀future;
•
฀ ฀We฀deviate฀from฀best฀practice฀provision฀IV.1.1,฀which฀
provides฀that฀a฀company’s฀general฀meeting฀of฀
shareholders฀may฀pass฀a฀resolution฀to฀set฀aside฀the฀
binding฀nature฀of฀a฀nomination฀for฀the฀appointment฀of฀
a฀member฀of฀the฀Management฀Board฀or฀the฀
Supervisory฀Board฀by฀an฀absolute฀majority฀of฀the฀votes฀
representing฀at฀least฀one฀third฀of฀issued฀share฀capital.฀
Our฀Articles฀of฀Association฀provide฀that฀a฀binding฀
nomination฀for฀the฀appointment฀of฀members฀of฀our฀
Management฀Board฀or฀of฀our฀Supervisory฀Board฀may฀
only฀be฀set฀aside฀by฀a฀resolution฀of฀our฀General฀
Meeting฀of฀Shareholders฀passed฀with฀a฀two-thirds฀
majority฀representing฀more฀than฀50%฀of฀our฀issued฀
share฀capital.฀We฀believe฀that฀maintaining฀continuity฀
in฀our฀Management฀Board฀and฀Supervisory฀Board฀is฀
critical฀for฀delivering฀long฀term฀shareholder฀value.฀
We฀would฀like฀to฀protect฀our฀stakeholders฀against฀
a฀sudden฀change฀in฀management฀by฀maintaining฀the฀
qualified฀majority฀and฀voting฀quorum฀requirement,฀
which฀is฀allowed฀under฀Dutch฀law;
•
฀ ฀With฀regard฀to฀press฀conferences฀and฀meetings฀with฀
and฀presentations฀to฀analysts฀and฀investors฀which฀
relate฀to฀our฀quarterly,฀half-year฀and฀annual฀results,฀we฀
apply฀best฀practice฀provision฀IV.3.1,฀which฀provides฀that฀
such฀press฀conferences,฀meetings฀and฀presentations฀
should฀be฀announced฀in฀advance฀and฀that฀measures฀
should฀be฀taken฀to฀allow฀investors฀to฀follow฀these฀
meetings฀and฀presentations฀in฀real฀time.฀We฀may฀
deviate฀from฀best฀practice฀provision฀IV.3.1฀with฀regard฀
to฀other฀press฀conferences,฀meetings฀and฀
presentations฀which฀do฀not฀relate฀to฀our฀quarterly,฀
half-year฀and฀annual฀results฀and฀for฀which฀prior฀notice฀
and฀attendance฀by฀investors฀is฀not฀practicable.฀
Management฀Board
General
The฀members฀of฀the฀Management฀Board฀have฀collective฀
powers฀and฀responsibilities.฀They฀are฀responsible฀for฀the฀
day-to-day฀management฀of฀our฀operations฀under฀the฀
supervision฀of฀the฀Supervisory฀Board.
Composition฀and฀appointment
The฀Articles฀of฀Association฀provide฀that฀the฀number฀of฀
members฀of฀the฀Management฀Board฀will฀be฀determined฀
by฀the฀Supervisory฀Board,฀and฀shall฀consist฀of฀at฀least฀
three฀members:฀a฀Chief฀Executive฀Officer,฀a฀Chief฀
Financial฀Officer฀and฀a฀Chief฀Operating฀Officer.฀Each฀
member฀of฀the฀Management฀Board฀is฀appointed฀for฀a฀
maximum฀of฀four฀years,฀which฀can฀be฀renewed฀for฀
another฀period฀of฀not฀more฀than฀four฀years฀at฀a฀time.฀The฀
General฀Meeting฀of฀Shareholders฀and฀the฀Supervisory฀
Board฀may฀suspend฀members฀of฀the฀Management฀Board฀
at฀any฀time.฀A฀resolution฀of฀the฀General฀Meeting฀of฀
Shareholders฀to฀suspend฀or฀dismiss฀members฀of฀the฀
Management฀Board฀requires฀a฀majority฀of฀at฀least฀two-
thirds฀of฀the฀votes฀cast฀representing฀more฀than฀50%฀of฀
our฀issued฀share฀capital.
The฀General฀Meeting฀of฀Shareholders฀appoints฀the฀
members฀of฀the฀Management฀Board,฀subject฀to฀the฀right฀
of฀the฀Supervisory฀Board฀to฀make฀a฀binding฀nomination฀in฀
accordance฀with฀the฀relevant฀provisions฀of฀the฀Dutch฀Civil฀
Code.฀The฀General฀Meeting฀of฀Shareholders฀may฀at฀all฀
times,฀by฀a฀resolution฀passed฀with฀a฀majority฀of฀at฀least฀
two-thirds฀of฀the฀votes฀cast฀representing฀more฀than฀50%฀
of฀our฀issued฀share฀capital,฀resolve฀that฀the฀nomination฀
submitted฀by฀the฀Supervisory฀Board฀is฀not฀binding.฀In฀such
cases฀the฀General฀Meeting฀of฀Shareholders฀may฀appoint฀
a฀member฀of฀the฀Management฀Board฀in฀contravention฀of฀
the฀Supervisory฀Board’s฀nomination฀by฀a฀resolution฀passed
with฀a฀majority฀of฀at฀least฀two-thirds฀of฀the฀votes฀cast฀
representing฀more฀than฀50%฀of฀our฀issued฀share฀capital.฀
If฀the฀Supervisory฀Board฀fails฀to฀use฀its฀right฀to฀submit฀a฀
binding฀nomination,฀the฀General฀Meeting฀of฀Shareholders฀
32