Rules of procedures and written instructions
The Board has established rules of procedures that are reviewed once a year or when necessary. These rules involve allocation of tasks between the Board and the President, detailed instructions for the President, other corporate functions concerning matters requiring the Board’s approval, and the financial reports and other information to be submitted to the Board.
The Board regularly addresses strategic matters relating to Husqvarna Group’s operations and general direction, potential acquisitions, all investments in excess of SEK 50m and changes in credit terms and conditions for major customers. All major investments are followed up at least once annually. The year-end report and the annual report are dealt with at the beginning of the year, as are the matters to be presented at the Annual General Meeting. Late in the year, the budget for the following year and the Group’s long-term strategic plan, are addressed. After each quarter, the quarterly results are reviewed and interim reports are approved for release. Both Committees’ work between meetings are also reported during each scheduled Board meeting. Current legal disputes as well as compliance matters are reviewed regularly, as is the corporate structure and capital structure.
All meetings follow a preapproved agenda plan, to which matters are added as the need arises. The agenda is approved by the Chairman of the Board and is, together with documentation for each item on the agenda, sent to all Board members about one week before each meeting. Each Board meeting commences with a review of the preceding meeting minutes and open issues. Thereafter the President and CEO presents the Group’s sales and earnings and the current business environment, including key business environment factors that may affect the Group’s performance. The Husqvarna Group’s CFO accounts for the Group’s financial position in more detail, including requisite analyses and operating environment analysis. Members of Group management report on any open items from previous Board meetings or present plans and proposals. Updated reviews for each business unit’s activities are presented according to an annual plan. In addition to the information provided in connection with Board meetings, the President and CEO sends a monthly report to Board members and is in frequent contact with the Chairman of the Board.
Assessment of the Board’s work
The Chairman of the Board is responsible for assessing the Board’s work including the performance of individual Board members. This is done on an annual basis pursuant to an established process. The assessment focuses on such factors as the availability of and requirements for specific expertise withinthe Board, commitment, the quality and timeliness of the Board material, working environment of the Board and the Board’s effectiveness. An independent assessment of the Chairman’s work is also conducted, which is headed by the Chairman of the Remuneration Committee. This assessment is also reported to the Nomination Committee, and forms a basis for the Nomination Committee’s proposal on Board members and remuneration to the Board.