Board’s work

The main task of the Board is to manage the Group’s operations in such a manner as to assure the owners that their interests, in terms of a long-term good return on capital, are being met in the best possible manner.

The Board’s work is governed by rules and regulations including the Swedish Companies Act, the Articles of Association, the Swedish Code of Corporate Governance and the working procedures established by the Board. To read more about the Board’s work in 2011 see the Corporate Governance Report 2011.

The Board deals with and decides ­on Group-related issues such as:

• Main goals.
• Strategic orientation.
• Essential issues related to financing, investments, acquisitions ­ and divestments.
• Follow-up and control of operations, communication and organization, including evaluation of the Group’s operational management.
• Appointment of and, if necessary, dismissal of the President.
• Overall responsibility for establishing an effective system of internal control and risk management.
• Important policies.

The Board’s work in 2011

During the year, the Board held eight scheduled meetings and two extraordinary meetings. All meetings except one were held in Stockholm, Sweden.
All Board meetings during the year followed an agenda, which, together with the documentation for each item on the agenda, was sent to Board members in advance of the meetings. Meetings usually last for half a day or one entire day in order to allow time for presentations and discussions. Cecilia Vieweg, Electrolux General Counsel, served as secretary at all of the Board meetings.

Each scheduled Board meeting includes a review of the Group’s results and financial position, as well as the outlook for the forthcoming quarters, as presented by the President. The meetings also deal with investments and the establishment of new operations, as well as acquisitions and divestments. The Board decides on all investments exceeding SEK 100m and receives reports on all investments exceeding SEK 25m. Normally, the head of a sector also reviews a current strategic issue at the meeting.

Major issues addressed by the Board during 2011

• Acquisition of Olympic Group in Egypt and CTI in Chile.
• Actions to improve operational excellence by adapting manufacturing capacity, taking out overhead costs and accelerating efforts to capitalize on the Group’s global strength and scope.
• New appointments in Group Management.
• Capitalization of the Group.
• Dividend payment for the fiscal year 2010.