Report on corporate governance and ownership 2011 - Indesit


<strong>Report</strong> on corporate governance and ownership at 21 March 2012 on 2011 
Part Two – Implementation of the provisions
of the Code
1. Board of directors
1.1 Role and
composition
The Board is the central body in the Company’s governance system, being responsible for defining the
strategic management policies of the Company and the Group and defining, applying and updating
the rules of corporate governance in observance of current legislation.
The Board:
• reviews and approves the Company’s and the Group’s strategic, industrial and financial plans drawn
up by management structure and presented by the CEO (annual budget, “MTP”, industrial plan)
drawn up by the CEO;
• periodically checks the adequacy of the organisation 10 , administration and general accounting
structures of the Company and its strategic subsidiaries 11 and with special regard to the internal
control system and management of conflict of interest;
• examines and approves operations defined as “significant” on the basis of the procedure
disciplining such operations, with special reference to situations in which one or more directors
have interests on their own account or on the account of 3 rd parties and complying with the RPT
Procedure (on this point, see the next section and section 8);
• supervises the conduct of business in general, with special reference to information from the
executive directors and the ICC, and carries out regular reviews of actual against programmed
results;
• reviews and approves the Company’s corporate governance system and the Group’s ownership
structure;
• is responsible for the ICS; it defines its guidelines so that the main business risks facing the
Company and the Group are being properly identified, measured, monitored and managed; it
establishes criteria for assessing the compatibility of such risks with sound business management
and periodically checks that the ICS is operating adequately and effectively;
• makes an assessment of the Board itself and its committees, at least once a year, in terms of size,
composition and functioning and if necessary suggests a need to include given categories of
professional on the Board;
• confers and revokes powers assigned to executive directors and defines the limits, procedures
and frequency (usually at least quarterly) with which such directors must report to the Board on
activities carried out in exercising the powers conferred on them;
• fixes the remuneration of executive directors and those of them with special tasks, as per art. 2389,
clause 2, c.c., the division of the total amount of remuneration amongst the individual members of
the Board and incentive and retention plans for the Group’s top management, as proposed by the
HRRC and having consulted the statutory auditors;
• in view of the Investor Protection Law, makes sure that the DP has suitable powers and resources
for carrying out the tasks assigned to him under the provisions of the TUIF and that administrative
and accounting procedures are being properly implemented.
10. The organisational structure is also assessed in relation to the results of the annual Human Resources Review by the HRRC, on
which its chairman reports to the Board. The last assessment, carried out by the HRRC on 21/1/2012, was illustrated to the
Board by the HRRC chairman on 10/2/2012.
11. Meeting on 21/3/2012 to assess the adequacy of the organisational, administrative and accounting structure, the Board
identified the following subsidiaries as “strategically relevant”: CJSC Indesit International, OOO Indesit Rus, Indesit Company
Polka Sp.zo.o. and Indesit Company UK Ltd.
16