Management Report - Münchener Hypothekenbank eG

Report of the Supervisory Board
During the 2005 business year the Supervisory
Board carried out its assigned tasks in accordance
with the legal requirements and the
Bank’s Articles of Association. The Supervisory
Board kept itself continuously informed of the
Bank’s business situation, financial status and
significant matters by means of verbal and
written reports. Moreover, the Chairman of the
Supervisory Board and the Speaker of the
Board of Management maintained continuous
contact with each other. The Supervisory Board
repeatedly examined business matters and gave
its approval to these actions after being convinced
that they were being handled in an
orderly manner.
The members of the Supervisory Board and the
Board of Management jointly reviewed basic
business policy issues affecting the Bank during
numerous meetings. The strategic course of the
Bank, in particular, was discussed in special committees
and during meetings of the entire
Supervisory Board with the Board of
Management, and agreement was reached on
the Bank’s future strategy. In this context,
particular attention was paid to the Bank’s risk
strategy, which was addressed by the entire
Supervisory Board and the special committee.
Various committees were appointed to deal
with special issues. These committees met
numerous times during the 2005 business year
with the Board of Management to make
required decisions. The Supervisory Board was
informed about the committees’ work in the
meeting held immediately after the committees’
meetings; during the year under review the
relevant committees reporting were the Personnel
Committee, the Lending Committee and the
Audit Committee.
The Management Report, the annual financial
statements and related accounting documents
for the 2005 business year were audited by the
Deutsche Genossenschafts- und Raiffeisenverband
e.V., Berlin, and received an unqualified certificate
from the auditors. There were no reservations.
Pursuant to Article 58 of the Cooperatives Law
(Genossenschaftsgesetz), the results of the
audit examination were discussed in a meeting
attended by the auditors and the Board of
Management.
The Supervisory Board concurs with the audit
results, and the 2005 annual financial statements,
including the allocation to reserves contained
therein. The Supervisory Board also agrees with
the 2005 Management Report and recommends
that the Delegates’ Meeting approve the annual
financial statements and endorse the Board of
Management’s proposal for the allocation of
distributable income.
During its meeting held on 6 April 2005 the
Supervisory Board appointed Dr. Bernhard
Scholz as a full member of the Board of
Management effective 1 April 2005.
During its meeting held on 14 December 2005,
the Supervisory Board elected HRH Duke Max
in Bayern as the new Deputy Chairman of the
Supervisory Board. Duke Max has been a member
of our Supervisory Board since 1991. He
assumes the deputy chairman position previously
held by Mr. Michael Glos, who became the German
Minister for Commerce and Technology on
22 November 2005 and, in accordance with the
Minister Act, was required to resign his position
as Deputy Chairman of the Supervisory Board,
which he had held since 1993. Despite the
heavy responsibilities of his political positions,
Mr. Glos always had time for his duties on
behalf of the Bank and was always open to
discussions about our concerns. We thank him
for his professional and dedicated efforts while
he was a member of the Supervisory Board and
for his efforts on behalf of the Bank. Along
with these thanks we also wish him all the best
for his significant and responsible tasks on behalf
of the entire Federal Republic of Germany.
Munich, 16 March 2006
MÜNCHENER HYPOTHEKENBANK eG
Prof. Dr. Willibald J. Folz
Chairman of the Supervisory Board
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