When the cooperation between the Board of Directors and Executive Management was evaluated, the result for 2009 was very satisfactory. The Board of Directors places great emphasis on the new challenges a global recession brings and how to make sure they are reflected in the way the Board operates. The recent establishment of an Audit Committee has strengthened the Board’s focus on auditing, accounting, internal control, and reporting.
Novozymes’ management systems have been developed over many years and are constantly adjusted to reflect changes in legal requirements, new business developments, and stakeholder expectations. A cornerstone of the management systems is Novozymes’ corporate governance setup.
Corporate governance is the name commonly given to the frameworks and guidelines for business management, including the overall structures and principles that regulate the interaction between a company’s management bodies, the shareholders, and other stakeholders. As every company is unique, there is no exact standard for “good corporate governance.” However, a number of valid principles have been developed and stated in recommendations, guidelines, or law. Novozymes’ goal is to have management systems in place that at all times ensure openness and transparency, providing stakeholders with relevant insight into the business – and, of course, effective management.
In accordance with Danish legislation, Novozymes has a two-tier management system comprising the Board of Directors and Executive Management, with no individual a member of both. The division of responsibility between the Board of Directors and Executive Management is clearly laid down and described in Rules of procedure for the Board of Directors
and Guidelines for Executive Management
available at www.novozymes.com