Self-assessment of the Board of Directors

Audited by PwC

The Board’s main responsibilities are to:

  • Ensure the best possible day-to-day management of the company and the right organizational structure
  • Supervise the financial development and Executive Management’s day-to-day running of the company
  • Participate in overall management and determining the strategy of the company

For an overview of the tasks performed to fulfill these responsibilities, see A year with the Board in this section.

As part of the efforts to ensure that Novozymes has well-functioning management systems in place at all times, the Board of Directors and Executive Management assess whether the main responsibilities have been fulfilled as well as the quality of collaboration between the two bodies. The assessment is carried out on an annual basis and was once again positive in 2009, with only minor areas for improvement identified. This time, emphasis was placed on the fact that the global recession leads to new challenges and that the Board of Directors must take these into account to make sure they are reflected in the way the Board operates.

One of the responsibilities of the Board of Directors is to assess each year whether the ownership structure with A and B common stock is optimal. The Board of Directors maintains that this is the best way of safeguarding Novozymes’ long-term development and thus benefits the company’s shareholders and other stakeholders.

In addition, the Audit Committee performs an annual assessment of its own performance to determine the correct scope and depth of its work. As the Audit Committee was established in 2008, the assessment in 2009 was the first one to take place, and the external auditors were also asked to evaluate whether the performance of the Committee fulfilled the requirements of the Audit Committee's Charter. Only minor improvement areas were identified. The Audit Committee and the Management are of the opinion that the setup of the Audit Committee has strengthened the Board’s focus on auditing, accounting, internal control, and reporting.

My Report