Connect - Schneider Electric
Connect - Schneider Electric
Connect - Schneider Electric
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3 CORPORATE GOVERNANCE<br />
SUPERVISORY BOARD COMMITTEES (MEMBERS, OPERATING PROCEDURES AND MEETINGS)<br />
prior approval for assignments that, strictly speaking, fall outside<br />
the scope of the auditing of the fi nancial statements;<br />
• monitors the effectiveness of internal control and risk management<br />
systems. In particular, the Committee:<br />
– reviews Internal Audit organisation and resources, as well as<br />
its annual audit schedule. Receives a quarterly summary report<br />
on the fi ndings of the audits carried out,<br />
– reviews risk mapping and its year on year evolution,<br />
– reviews risk mitigation on the basis of presentations by the<br />
relevant managers or reports by Internal Audit,<br />
– reviews the rollout of the Company’s internal audit system<br />
and the management report on internal control, as well as<br />
the draft report of the Chairman of the Supervisory Board on<br />
procedures for internal audits and risk management,<br />
– reviews codes of conduct, notably concerning fair trading and<br />
ethics and examines the measures taken to ensure they are<br />
circulated and applied.<br />
The Audit Committee examines proposed dividend payouts and<br />
the amount of fi nancial authorisations submitted to the Annual<br />
Shareholders’ Meeting.<br />
The Audit Committee examines all fi nancial, accounting and risk<br />
management issues referred to it by the Management Board, the<br />
Supervisory Board or its Chairman.<br />
The Audit Committee presents its fi ndings and recommendations<br />
to the Board. The Chairman of the Audit Committee immediately<br />
informs the Chairman of the Supervisory Board of any diffi culties<br />
encountered.<br />
Meetings in 2011<br />
In 2011, the Audit Committee met six times. The average duration<br />
of the meetings was three hours and the average attendance rate<br />
was 94%.<br />
Each meeting was attended by the Chief Financial Offi cer, members<br />
of the Finance Department, head of Internal Audit and also the<br />
external auditors. Operational management also reported to the<br />
Committee. In line with the provisions of the AFEP/MEDEF Code,<br />
representatives of the Finance Department and Internal Audit were<br />
not present during the Statutory Auditors’ presentation at meetings<br />
devoted to the fi nancial statements. The President and CEO did not<br />
attend any of the Audit Committee’s meetings.<br />
The Committee looked at the following topics:<br />
1) Financial statements and fi nancial disclosures:<br />
– review of the annual and interim fi nancial statements and of the<br />
reports of the Management Board on the fi nancial statements,<br />
120 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC<br />
– review of goodwill, reserving and pension obligations or<br />
assimilated obligations,<br />
– review of investor relations documents concerning the annual<br />
and interim fi nancial statements,<br />
– review of AMF recommendations concerning the 2011<br />
Registration Document,<br />
– review of fi nancial communication such as Investor days;<br />
2) Internal audit, internal control and risk management:<br />
– review of the 2012/Q1 2013 Internal Audit schedule drawn up<br />
on the basis of risk mapping,<br />
– review of the main audits carried out by Internal Audit and an<br />
update of the methodology for internal audit,<br />
– review of the current situation regarding organisation and<br />
deployment of Internal Audits and review of the results of<br />
self- evaluation,<br />
– review fraud prevention: methodology and executive summary,<br />
– review of action plans regarding the security of IT systems,<br />
– review of the possible impacts of the fi nancial crisis on<br />
management of debt and the Group’s conditions for obtaining<br />
fi nance,<br />
– review of procedures for the approval of projects,<br />
– review of tax risks,<br />
– review of controls on customer risks,<br />
– review of management process for R&D,<br />
– review of business acquisition plans,<br />
– review of Group policy on managing Benefi ts and the Pension<br />
Fund,<br />
– review of risk mitigation by means of insurance,<br />
– review of the Chairman’s draft report on procedures for internal<br />
audit and risk management;<br />
3) Statutory Auditors:<br />
– review of the 2010/2012 external audit schedule,<br />
– review of the fees paid to the Statutory Auditors and their<br />
networks;<br />
4) corporate governance:<br />
– update the 2010-2013 schedule covering the work of the<br />
Audit Committee and more specifi cally its risk review,<br />
– review of the fi nancial authorisations presented to the 2011<br />
Annual Shareholders’ Meeting,<br />
– recommended dividend for 2011.<br />
The Audit Committee reported to the Supervisory Board on its work<br />
in 2011 at the February 16, June 21 and 22, July 28, October 19<br />
and December 15, 2011 meetings.<br />
Remunerations, Appointments and Human Resources Committee<br />
Members<br />
The Supervisory Board’s internal rules and procedures stipulate that<br />
the Remuneration, Appointments & Human Resources Committee<br />
must have at least three members. It is chaired by the Chairman of<br />
the Supervisory Board.<br />
The Committee members are: Messrs Henri Lachmann –<br />
Chairman –, Claude Bébéar, Léo Apotheker, Willy R. Kissling and<br />
Serge Weinberg.<br />
Operating procedures<br />
Meetings are called by the Committee Chairman. The agenda is<br />
drawn up by the Chairman, after consulting the President and CEO.<br />
It meets at least three times a year.<br />
The Committee may seek advice from any person it feels will help<br />
it with its work.