PSA - 2019 Universal Registration Document

CORPORATE GOVERNANCE Management and supervisory bodies

Preparation and organisation of the Supervisory Board’s work 3.1.3.

ROLE ANDPOWERS OFTHE SUPERVISORY BOARD

3.1.3.1.

In accordancewith the law, the SupervisoryBoardacts as the oversightbodyof the Company,whichis administeredandmanagedby the ManagingBoard. Therefore,the role ofthe Supervisory Board is: to permanentlymonitorthemanagement of the Companyby the ManagingBoard,makingthechecks it deems necessary; n to performperiodiccheckson the managementof the Company’saffairs:oncea quarterfor the ManagementReportsubmittedto it n by the ManagingBoard, and within three monthsof the end of each financialyear when the ManagingBoard submitsthe parent companyfinancialstatements,consolidated financialstatementsand theManagementReportintendedfor the Shareholders’Meeting, for the SupervisoryBoard’sopinionandobservations.Therefore,it alsoexaminestheHalf-yearFinancialReport,thequarterlyfinancial information and the financialpress releases to be published by the Company; the Managing Board therefore regularly updates the SupervisoryBoard on the financial position, cash position and Company n commitmentsto give, in accordancewith the powersit holds underArticle 9of the by-lawsof the Companyand in additionto the legal obligations of priorauthorisations, its priorauthorisation for the ManagingBoardto carry outthe following actions: proposeany amendmentto the Companyby-laws(or any otherdecisionwhosepurposeor effectwouldbe to amendthe Company a) by-laws), conductshare issues(whetherpaid up in cash or by capitalisingretainedearnings)and capitalreductions,whereauthorisedby the b) Shareholders’General Meeting, issue any andall ordinaryor convertiblebonds authorised by theShareholders’GeneralMeeting, c) draftanymerger agreements or agreements for partial transferof assets, d) signor terminateanymanufacturingor salesagreementsrepresentinga futurecommitment for theCompanywithcompanieswhose e) corporate purpose is similar or related to that of the Company and generally the execution of any major transactionwhich substantiallyaltersthe scopeof the businessor the financialstructureof the Companyor the Groupit controlsor whichare not part of thestrategy announced by theGroup, purchase, sell, exchange or contribute any business property and/or goodwill in excess of the amounts determinedby the f) Supervisory Board (currently €100 million), purchase, take or dispose of any stake in other existing or future companieswhich represent directly or indirectly a capital g) expenditure,an expense(in corporatevalue) or a credit or liability guarantee,immediateor deferred,in excess of the amounts determinedby the Supervisory Board (currently€100 million), sign loan agreements,other than for bond issues, for a periodor an amountin excessof the limits set by the SupervisoryBoard h) (currently €100 million), grantor renewsureties,endorsementsand guaranteeson behalfof the Company(excludingcommitmentsto the tax and customs i) authorities), irrespective of thedurationof theguaranteed commitments, for an amountper commitment in excessof theamountset by the SupervisoryBoard(currently€25 million),or for a total yearlyamountin excessof the amountset by the SupervisoryBoard (currently €125 million), issue any performance-based stockoption or performance shareplans, j) buyback sharesundera programmeauthorisedby theShareholders’GeneralMeeting,and k) enterintoanytransactionagreementor anycommitment,as partof a legaldisputeor arbitrationprocedure in excessof the amounts l) set bythe Supervisory Board(currently €50 million). All theseauthorisationsapplyto transactionscarriedout by the Company.The topicsdiscussedin paragraphs(b) and (d) aboveapply to transactionscarriedout by the Group’sdirect or indirectsubsidiariesinsofaras they involvean entity outsidethe Groupand have strategicimportance.The topics discussedin paragraphs(c) and (h) above apply to any Group subsidiaryexcept for Banque PSA Finance. The topics discussed in paragraphs(e), (f),(g), (i), (j), (k) and (l) aboveapply toanyCompanysubsidiary. Regardingthe topicsdiscussedin paragraphs(f) and (g) above,theManagingBoardwill notifythe SupervisoryBoardof the completion of similartransactionsapplying to amounts between€50 million and€100 million inclusive. Notwithstanding the above,theaforementioned authorisations do not applyto transactions carried out byFaurecia. The Supervisory Board ensures thathe strategy proposed andapplied bythe ManagingBoard fits with its long-term vision. Eachyear, it examines and approvesthe medium-term strategic plan, the capitalexpenditureplan andthe budget. It is alertedby the ManagingBoard as soon as possiblein the case of an externalevent or internaldevelopmentswhich significantly jeopardisethe Company’soutlook orthe projections submitted to theSupervisory Board. It is notified annually of the mainprioritiesof the Group’shuman resources policy.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT