BMW 2011 Annual Report Download - page 11

The Head of Group Controlling reported to the Audit Committee on risk management within the BMW
Group, explaining the processes in place with regard to specific reporting periods and vehicle projects and
providing an overview of the current risk profile, including the impact of the catastrophe in Japan and the
measures undertaken as a result. The current status of the internal control system, particularly with respect
to financial reporting processes, was also presented.
The Chairman of the BMW Group Compliance Committee reported to the Audit Committee on the cur-
rent
compliance situation, which, as in the previous year, was deemed satisfactory. In addition, the Com-
mittee inquired into the outcome of sample testing carried out by the BMW Group Compliance Committee
Office. The tests, which focused on the prevention of corruption, were performed as part of a group-wide
risk assessment using a compliance-specific risk matrix approach. The Audit Committee was also informed
of the establishment of a group-wide “whistle-blower” system and of plans to improve the BMW Group
Compliance Organisation further.
The Head of Group Audit reported to the Audit Committee on the principal results of internal audit tests,
the points of emphasis for the remainder of the financial year 2011 and the successful outcome of an external
quality assessment of the Group Audit function carried out during the year under report.
In conjunction with the power vested in it by the Supervisory Board, the Audit Committee concurred
with the decision of the Board of Management to raise the share capital of the Company in accordance
with
Article 4 (5) of the Articles of Incorporation (Authorised Capital 2009) by € 407,960 and to issue a corre-
sponding number of new non-voting shares of preferred stock, each with a par value of € 1, at favourable
conditions to employees.
The Personnel Committee convened three times during the financial year 2011, with the emphasis of
activities on the preparation of decisions relating to Board of Management compensation. In a small number
of cases, the Personnel Committee also approved the assumption of external mandates by members of the
Board of Management in non-Group supervisory or equivalent boards and approved contracts entered into
by BMW Bank GmbH, for which its approval was required in accordance with the German Banking Act.
The Nomination Committee, which is charged with the task of finding suitable candidates for election
to the Supervisory Board and for inclusion on the Supervisory Board’s proposals for election at the Annual
General Meeting, did not convene during the past financial year.
The statutory Mediation Committee pursuant to § 27 (3) of the German Co-Determination Law was not
required to convene during the financial year 2011.
The relevant chairmen reported regularly and in depth at full Supervisory Board meetings on the status
of Presiding Board and committee work. A detailed description of the work procedures of Supervisory Board
committees is provided in the Corporate Governance Report.
11 REPORT OF THE SUPERVISORY BOARD