Siemens 2005 Annual Report Download - page 69

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69
Report of the Supervisory Board
Committee meetings
The Chairman’s Committee remained in close contact with the Managing Board
between the five regular meetings held during fiscal 2005. As one of the Supervisory
Board’s four committees, the Chairman’s Committee met five times to address person-
nel matters relating primarily to the Group executive managements, issues relating
to Managing Board remuneration, and the determination of variable and stock-based
remuneration components. At every meeting, the Chairman’s Committee also dealt
with the Company’s strategy and performance and with matters relating to corporate
governance.
Together with the independent auditors, the President of the Managing Board and
the Chief Financial Officer, the Audit Committee discussed the Annual Financial State-
ments of Siemens AG and the Consolidated Financial Statements of Siemens world-
wide, the appropriation of net income and the Annual Report on Form 20-F for the
U.S. Securities and Exchange Commission (SEC). During the year, the Committee also
gave in-depth consideration to the Company’s quarterly reports, the appointment of
the independent auditors, oversight of the auditors’ independence and efficiency, and
their fee. In addition, the Audit Committee dealt intensively with the Company’s risk
management system and with the authorization and findings of the internal financial
audit and the reports on statutory and regulatory risks. At several meetings, the Audit
Committee discussed compliance with the provisions of Section 404 of the Sarbanes-
Oxley Act (SOA) regarding internal control systems.
In January 2005, the Audit Committee elected Gerhard Cromme to succeed Karl-
Hermann Baumann as Chairman of the Audit Committee. Mr. Cromme had previously
been elected by the Supervisory Board to succeed Josef Ackermann on the Audit Com-
mittee. The Audit Committee met five times during the year, sometimes without the
Managing Board in attendance, to evaluate its own activities and review its bylaws.
The Mediation Committee, formed pursuant to § 27 (3) of the German Codetermi-
nation Act, had no occasion to meet during the year. The Ownership Rights Committee,
defined in § 32 of the Act, voted on resolutions using a notational, or written, voting
process and notified the Board of the outcome at the ensuing meetings. All committees
reported to the Supervisory Board on a regular basis.