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Corporate governance report Organizational and operating procedures of the board of directors

2.3 Internal regulations and procedures of the board of directors

On April 25, 2013, the board of directors adopted its own internal regulations. These were modified later on: E February 15, 2017 to comply with the new AFEP/MEDEF Code published in November 2016, to update the duties of the members of the board relating to the notification of transactions conducted by persons closely associated with them as defined by European Regulation No. 596/2014 of April 16, 2014 on market abuse (Market Abuse Regulation) and to redefine the mission of the Strategy Committee in accordance with the decision of the board of December 15, 2016; E July 26, 2017 to add governance best practices relating to rotation of chairmanship of committees; E August 31, 2017 to insert the rules of composition and mode of operation of the Digital committee; E October 25, 2017 in particular to clarify the attendance of the employee directors to executive sessions of the board of directors; and E February 14, 2018 to convert the Strategy Committee into an Investment committee, to review the missions of the committees and to make it systematic to hold an executive session at the end of each meeting of the board of directors; these modifications were made to implement the action plan adopted by the board in pursuance of its self-assessment ( cf . page 170). These internal regulations include the rules of procedure of the board committees (the Audit and risks committee, the Governance and remunerations committee, the Human Resources and CSR committee and the Strategy Committee), and the directors’ charter as recommended by the AFEP/MEDEF Corporate Governance Code. The regulations are reproduced on pages 357 to 363 of this Registration Document. They are published on the Company’s website, www.schneider-electric.com. They comprise 14 articles: Article 1 , on the method of exercising Senior Management and the Chairmanship and Vice-Chairmanship of the board of directors, provides that the board shall deliberate each year on the decision to unify the functions of Chairman and Chief Executive Officer. It also defines the duties and missions of the Vice-chairman independent lead director who is appointed when the board decides to unify the functions of Chairman and Chief Executive Officer. As such, the Vice- Chairman: E is informed of major events in the life of the Group within the framework of regular contacts and monthly meetings with the Chairman, as well as through contacts that he/she can have with managers of Schneider Electric and possible visits to the Group’s sites he/she can undertake. In addition, he/she can attend all meetings of committees of which he/she is not a member; E can answer shareholders’ questions or meet themon governance issues when it is considered that he/she is the most appropriate spokesperson; E sets the agenda for Board meetings with the Chairman; E chairs the Governance and remunerations committee which, starting from the evaluation of the functioning of the board and that of the CEO, proposes each year to the board to the continuation or separation of the unified functions of Chairman and Chief Executive Officer and, as needed, makes proposals for a successor in one or both functions;

E chairs the “executive sessions”, i.e. meetings of the board of directors not in the presence of any executive member, namely the CEO and Executive Vice-President; E reports to the Chairman on the results of the “executive sessions”; E leads the annual evaluations of the board of directors; E informs the Chairman and CEO and the board of any conflicts of interest which could be identified or which may be reported to him/her; E reports on his/her activities during the Annual Shareholders’ Meeting. The charter for the Vice-chairman independent lead director is found on pages 363-364. The report of tasks he/she carried out in 2017 in line with his/her functions is found on page 356. Article 2 defines the role and powers of the board of directors. It states that the board of directors shall determine the strategic orientations of the Company and oversee implementation thereof. To enable the board to perform its missions, the Chairman or the committees must inform the board of any significant event affecting the Company’s efficient operation. In addition, any acquisitions or disposals of assets amounting to more than EUR250 million, as well as any strategic partnership agreements, must be submitted to the board for approval. In addition, the board of directors must conduct an annual review of its composition, organization and operation. Article 3 establishes the principles which the board of directors intends to follow to ensure its renewal. These include assuring international representation by maintaining a significant number of non-French directors, maintaining independence through skills, availability and commitment of its members, applying the principle of balanced representation of women and men on the board, enabling representation of employee shareholders on the board, and ensuring continuity through the reappointment of a certain proportion of the members at regular intervals. Article 4 organizes meetings of the board of directors. In addition to the legal rules on the convocation of the board, the modes of participation of the directors, the minutes, etc. , this article provides for a minimum of 6 meetings per year, the presence of the Chief financial officer at Board meetings as well as the presence of the relevant operational managers for the major issues presented for review by the board. Article 5 specifies how information is handled by the board of directors. In particular, it provides that the Chairman and CEO shall meet with each director individually once a year. Article 6 defines the status of the directors. This is in compliance with the director’s charter contained in the AFEP/MEDEF corporate governance guidelines. The charter provides that directors: E represent all shareholders and act in the corporate interest; E must resign from the board when they have not participated in at least half the Board meetings; E are bound by an overall obligation of confidentiality; E have a permanent duty to ensure that their personal situation shall not give rise to a conflict of interest with the Company; the member of the board of directors having a conflict of interest, even a potential one, shall not take part to the discussions nor

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