ANNUAL REPORT 2010/11 - Schumag AG

4 Report of the Supervisory BoardReport of theSupervisory BoardDear Shareholders,In fiscal year 2010/11 Schumag profited from thegeneral recovery of the global economy after thefinancial and economic crisis. Nevertheless we lookback on a difficult fiscal year again. Especially thedifficult liquidity situation complicated targetorientedentrepreneurial activity.The measures for capacity adjustment and costreduction taken by the Board of Executive Directorshave so far not been fully effective. The expectedimprovement of the overall situation has not set in.Furthermore, an attempt was made to get establishedin the business segment of regenerative energies.In the year under review changes in the compositionof the shareholder representatives on the SupervisoryBoard were once again recorded; the continuousmonitoring of the management by the Board ofExecutive Directors was nevertheless fully ensured.Overview of the activities of theSupervisory BoardDuring the past fiscal year the Supervisory Boardexercised the duties for which it is responsible accordingto the law, the articles of association and therules of internal procedure. We regularly advisedthe Board of Executive Directors with regard to themanagement of the company and supervised itsactivities. The standards for our supervision were inparticular the lawfulness, correctness, purposefulnessand efficiency of the management by the Board ofExecutive Directors as well as the effectiveness ofthe risk management. The Supervisory Board wasdirectly involved in decisions of essential significancefor the company. The Board of Executive Directorsinformed us on a regular basis, both in writing andverbally, in a timely and comprehensive mannerabout the liquidity development and financial situation,the corporate planning (namely investment,personnel and financial planning), business development,strategic development as well as the currentsituation of the company and the Group, the risksituation and risk management. Based on the reportswe have intensively looked into the situation anddevelopment of the company and the Group as wellas the business transactions in fiscal year 2010/11.Where the course of business deviated from theplans these deviations were explained to us indetail. The strategic alignment of the company wascoordinated with us by the Board of ExecutiveDirectors. Transactions of essential significanceto the company were discussed by us in detail onthe basis of the reports of the Board of ExecutiveDirectors. We reviewed the reports presented to usfor plausibility and discussed them with the Boardwhere necessary. In addition, we requested supplementaryinformation from the Board of ExecutiveDirectors.After thorough examination, the Supervisory Boardgave its consent to the resolutions proposed by theBoard of Executive Directors.MeetingsA total of five meetings of the Supervisory Boardtook place in fiscal year 2010/11. The dates areindicated below:❚ December 7, 2010❚ February 9, 2011❚ April 11, 2011❚ May 13, 2011❚ June 30, 2011If necessary, the Supervisory Board also passedresolutions by written consent in lieu of a meeting.Apart from the meetings of the Supervisory Boardthe Chairman of the Supervisory Board and hisdeputy also had regular contact with the Board ofExecutive Directors and informed themselves aboutthe current business development and essentialtransactions as well as the strategic businessalignment.Focal topics of the Supervisory Boardmeetings in fiscal year 2010/11The activities of the Supervisory Board in the reportingyear 2010/11 included, apart from the currentmonitoring of the business development and planning,also particular measures which required theconsent of the Supervisory Board as well as themeasures for the stabilization and improvement ofthe financing of the company and the Group.