notes to the consolidated financial statements - Sacombank

ACtIVItIES oF tHE BoARD oF SUPERVISoRS
The Board of Supervisors (BOS) overlooks the Bank’s operations to provide an accurate assessment of its business activities
and financial position. It is directly elected by the General Meeting of Shareholders, and independent from the Board of
Directors (BOD) and the Chief Executive Officer (CEO). The BOS has the following tasks:
n Supervise compliance with the laws and the Bank’s
charter in the management of the Bank.
n Give instructions to and supervise the activities of the
Internal Audit function. Be responsible for internal
controls and inspection systems in accordance with the
regulations of the State Bank of Vietnam.
n Evaluate the financial statements of the Bank. Assess the
reasonableness, legality, truthfulness and creditability
of the Bank’s accounting and statistics, and prepare
financial statements for submission to the Annual
General Meeting of Shareholders.
n Monitor the status of capital management and use.
n Monitor service operating activities.
n Monitor investing activities.
n Monitor the management of the Bank’s assets, including
supervision of procurement, repairs and capital
construction, monitor compliance with treasury safety
assurance regulations.
The BOS carried out its tasks through the following activities:
n On the basis of macro-economic forecasts and internal
assessments on the operations of the Bank, the BOS set out
specific action plans from the beginning of the year, focused
on supervising and coordinating with the BOD and the Board
of Management (BOM) to achieve the Bank’s objectives.
Remuneration and expenditure of the BOD, the BOS and committees
ORGANIZATION
n By participating in Councils, Committees and Boards,
and meetings of the BOD, the BOS monitors compliance
with the laws and the Bank’s Charter on management,
and provides opinions on the revision and amendment
of business objectives and directions as well as
regulations and processes prepared and issued by the
BOD and the BOM, hence improving the effectiveness
of prior supervision and mitigating potential risks.
n Through a three-level control organisation consisting
of the BOS, Internal Auditors, and Regional Inspection
and Control Teams and BOS in subsidiaries providing
daily and weekly reports made by internal auditors, the
BOS controls and supervises the operations of domestic
and overseas Branches, departments in the Head Office
and Subsidiaries. In addition, each year, the BOS visits
Branches and Regional Offices to assess real business
operating situations and management activities, and to
collect and study feedbacks from Branches and Regional
Offices on advantages and disadvantages in operation,
and the timeliness and effectiveness of support from
Regional Offices and functional departments of the
Head Office for business units.
Under the above operating mechanism, the BOS has fully
controlled the operations of the Bank, ensuring safety,
efficiency and compliance with the laws.
The remuneration and expenditure of the BOD, the BOS and committees was approved by the General Meeting of
Shareholders at 1% of the profit after tax for the fiscal year 2011.
ANNUAL REPORT 2011 28