In accordance with the legislation and the Articles of Association, the Board of Directors is responsible for the Company’s administration and for the due arrangement of its operations. The Board of Directors appoints the Managing Director and, as necessary, his or her deputy. The other duties of the Board of Directors include:
- deciding on the Company’s strategy
- deciding on significant investments, acquisitions, and sales of assets
- reviewing the financial statements and the Report by the Board of Directors
- Reviewing the budget
- specifying the Company’s dividend policy and submitting a proposal on the annual dividend to the General Meeting
- reviewing the Company’s sales policy applied to its auctions
- monitoring the Company’s financial risks
- monitoring the Company’s risks
- deciding on the basic pricing of the pelt brokerage services the Company offers to its customers
- approving the composition of the Company’s Management Group based on the proposal of the Managing Director
- evaluating the operations of the executives
- deciding on the Company’s personnel incentive schemes
- deliberating on other matters, if the Company’s Managing Director considers it prudent.
In accordance with its charter, over and above the aforementioned duties, the Board of Directors gains information on the international market situation for raw pelts, becomes familiar with the issues regarding interest safeguarding in different market areas, and monitors the flows of pelts into and out of the Company.
The Board of Directors evaluates its operations and working methods annually.
According to its charter, the Board of Directors convenes a minimum of 14 times per financial year. During the 2016–2017 financial year, the Board met 26 times. The Board members’ average attendance rate at the meetings was 97 per cent.
Composition of the Board of Directors
The General Meeting elects a minimum of five and a maximum of eight members to the Board of Directors. The directors are elected for a term of one year that commences at the end of the General Meeting at which they are elected and ends upon the adjournment of the next General Meeting.
In the notice of the General Meeting, the Company communicates any proposals regarding the composition of the Board of Directors that the Board of Directors or shareholders with a minimum of 10% of votes yielded by the Company’s shares have made prior to the notice. The Company reports the biographical details of the director candidates on its website and in the notice of the General Meeting.
According to the prevailing practice, a person who is 65 or older cannot be elected as a director. Personal deputies are elected for the directors.