In this section you can find information about how FLSmidth is governed and how the corporate governance structure is practised in the company
In the Board of Director’s opinion, FLSmidth fully complies with all recommendations on corporate governance applicable to Danish listed companies, except for one.
According to general practice in Denmark, FLSmidth maintains a clear division of responsibility and separation between the Board of Directors and the Group Executive Management. Tasks and responsibilities are defined at an overall level via rules of procedure for the Board of Directors and rules of procedure for the Group Executive Management. In addition, terms of reference apply to the Board committees.
The Group Executive Management is responsible for the day-to-day business of the company, and the Board of Directors oversees the Group Executive Management and handles overall managerial issues of a strategic nature. The Chairman is the Board of Directors’ primary liaison with the Group Executive Management.
Compliance with the recommendations for corporate governance
Pursuant to Section 4.3 of the rules for issuers of shares listed on Nasdaq Copenhagen, Danish companies must provide a statement on how they address the recommendations on Corporate Governance issued by the Committee on Corporate Governance in May 2013 based on the ‘comply or explain’ principle, which can be found here.
FLSmidth’s position on each specific recommendation is summarised in the latest FLSmidth’s position on each specific recommendation is summarised in the latest corporate governance statement.