Annual report 2005 - Sava dd

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implementing the corporate strategy of Sava d.d. and its
subsidiaries.
Managing subsidiaries is carried out at several levels:
• council of directors of the Sava Group, which consists
of members of Sava d.d. Board of Management,
directors of subsidiaries and the director of
competence centres of knowledge;
• competence centres of knowledge, which exercise the
business policy at expert levels and transfer
knowledge within the Sava Group;
• shareholders’ meetings of subsidiaries, at which Sava
d.d. exercises its voting right and protects its interests;
• supervisory board meetings of subsidiaries, at which
the representatives of the Sava d.d. management
exercise their managing role; and
• occasional consultations, if so required by the nature
of business.
The Council of Directors is headed by the chairman of
Sava d.d. Board of Management. Members meet on a
monthly basis and deal with business achievements and
other important aspects of the company business in the
Group. Furthermore, the Board of Management of Sava
d.d. regularly (twice a year) convenes a business
conference of the Sava Group. The June meeting is
intended for forecasting the business results by the year
end, whereas the December meeting deals with the
business plans for the following year.
Representatives of the Sava d.d. management actively
engage in governing and managing the subsidiaries as
members of their supervisory boards. Their tasks
include regular assessments of the implementation of
company strategic policies and their efficiency, giving
approvals to strategic decisions and appointing or
recalling members of the management bodies, as well as
their remuneration.
There were no changes in 2005 in the management
teams of the subsidiaries.
Managing key strategic
areas through the competence
centres of knowledge
The continual development of operations demands
improvements, which is why we have formed two new
competence centres of knowledge in 2005 such as
Internal Audit and EU Projects.
The competence centres of knowledge are the
organisational form established in order to manage key
strategic areas at the level of the entire Group; they were
formed in 2002 and represent the organisational
successor of the previous network management of
individual areas. One of the Board of Management
members is competent for each of the centres as its
administrator. The fundamental role of the competence
centres that, as a rule, have their management centre in
the holding company, is to take care of performing the
adopted business policy in their particular area of
expertise. The competence centre members in the
subsidiaries exercise common principles within their
companies. The operation of this organisational form of
management and securing knowledge transfer within the
Group is defined in the regulations book of the Board of
Management.
Establishing an internal audit in the form of a
competence centre is substantial progress in
strengthening the corporate governance system,
especially with regard to controlling the business
performance of its subsidiaries. The basic task of
internal auditors in the Sava Group is to provide
assurances, which are based on independent and
impartial audits, about the suitability of procedures for
dealing with risks and to advise on how to improve the
efficiency and success of such procedures in all business
areas.
The tasks of the second newly established competence
centre, EU Projects, is to work systematically and to use
opportunities for funding utilising European structural
funds.
Within the Sava Group there are 14 competence centres
of knowledge: Internal Audit, Risk Management,
Strategic Finance, Finance, Strategic Accounting,
Planning and Analyses, Marketing Systems, HR, Law
and Organisation, Corporate Communications, Strategic
Purchasing, Strategic Informatics, Quality Systems,
Cost Control and Operational Excellence, Safety, and
EU Projects.