Annual Report 2013

Corporate governance

Interaction between Management Board, Supervisory Board, Shareholders’ Committee and other committees

The Management Board, Supervisory Board and Shareholder’s Committee work in close cooperation for the benefit of the corporation.

The Management Board agrees on the strategic direction of the company with the Shareholders’ Committee and discusses with it the status of strategy implementation at regular intervals.

In keeping with good corporate management practice, the Management Board informs the Supervisory Board and the Shareholders’ Committee regularly, and in a timely and comprehensive fashion, of all relevant issues concerning business policy, corporate planning, profitability, the business development of the corporation and its major affiliated companies, and also matters relating to risk exposure and risk management.

For transactions of fundamental significance, the Shareholders’ Committee has established a right of veto in the procedural rules governing the actions of Henkel Management AG in its function as sole Personally Liable Partner (Art. 26 of the Articles of Association). This covers, in particular, decisions or measures that materially change the net assets, financial position or results of operations of the company. The Management Board complies with these rights of consent of the Shareholders’ Committee and also duly submits to the decision authority of the corporation’s Annual General Meeting.