A4 für Copyshop GB.indd - Bayerische Landesbank

126 Report by the Board of Administration, accounts of BayernLB and the BayernLB Group and notes to the accounts
purpose assets. The restitution claim arising from the case was charged to expense
and deferred in 2004, and the repayment to the Free State of Bavaria effected in
January 2005.
This concluded the proceedings. In the first half of 2005, the Bank aims to come to an
amicable solution with the European Commission relating to the planned EUR 640 mil-
lion capital increase. The capital increase, to which the Bank’s two owners are to con-
tribute 50 percent each, is to be carried out in two tranches in 2005 and 2006. It will
help considerably to reinforce the Bank’s capital base.
Corporate Governance
BayernLB’s Corporate Governance Principles, which entered into force on 1 January
2004, serve as guidelines for collaboration between the Board of Management, Board
of Administration and General Meeting. They ensure responsible and transparent
administration and controlling, oriented towards sustained enhancement of the Bank’s
enterprise value.
In their meetings of 7 December 2004, the Board of Administration and the General
Meeting discussed compliance with BayernLB’s Corporate Governance Principles. Both
bodies, in harmony with the Board of Management, established that there is nothing
to suggest that the Bank does not comply with these principles.
Changes to the Board of Management
Certain changes were made to the Board of Management in the 2004 financial year.
With effect from 1 July 2004, we consented to Mr. Werner Strohmayr’s request to be
discharged from his duties as Member of the Board of Management. Dr. Ralph Schmidt
took on Mr. Strohmayr’s position from 1 July 2004. For the time being, his role is that
of Senior Executive Vice President entrusted with Board of Management tasks.
Having served nineteen years on the Bank’s Board of Management, Dr. Peter Kahn also
left the Board for personal reasons. He retired at year-end 2004. The Board has one
less member following Dr. Kahn’s retirement. His responsibilities have been taken over
by Dr. Rudolf Hanisch and Mr. Theo Harnischmacher.
We would like to thank both Mr. Strohmayr and Dr. Kahn for their excellent contri-
bution to the Bank, and wish Dr. Ralph Schmidt all the best and every success in his
new role.
Auditing and approval of the 2004 annual accounts
The Bank’s annual accounts and consolidated accounts, as well as its summarised
report on the Bank and the Group, have been audited by KPMG Deutsche Treuhand-
Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft. The audit of the
annual accounts and reports of Bayerische Landesbodenkreditanstalt and Bayerische
Landesbausparkasse, both of which are institutions of the Bank, has been conducted