NOKIA is an organisation which provides sustainability by following many principles. Nokia is a leader in mobile communications, enabling mobility through its different businesses. Nokia Corporation is the world’s biggest manufacturer of mobiles which is mainly based in Finland. Now the company is serving customers in 130 countries and having more than 60,000 employees during 2005 (Nokia 2006), but crossed more than 123 553 at the end of 2009 to 2011.
According to the guideline of NOKIA all the board of directors are committed to follow certain rule and regulations to build good corporate governance. As we all know corporate governance provides the certain balance among the customers, ...view middle of the document...
It has avoided the conflicts and consequences of laws between Finnish regulations and other Non Domestic rules and regulations.
MEMBERS AND FUNCTIONS OF GOVERNANCE BODIES IN NOKIA
General meeting of share holders
External Audit Board of directors Internal Audit
NOKIA leadership team
GENERAL MEETING OF SHARE HOLDERS:
Shareholders are having a decision making power along with a right to vote and speak in the general meeting of the shareholders of NOKIA. According to Finnish laws NOKIA have to show their annual report on June 30. As well as in this general meeting they decide who will be the Board of directors and also their remuneration they also decide how the profit can be used that has ben shown in the balance sheets as well as they discharge the CEO and board of directors if they are unable to perform to fulfil the expectation of the share holder and also they determine the external shareholders and their fees.
BOARD OF DIRECTORS:
Board of directors of Nokia are responsible for their actions to the shareholders and also their actions are active not passive they take part in determining the strategic decisions and also the effective utilization of resources and internal policies which the management have to imply in their daily work routine. As Board of directors of NOKIA they have to look after these following facts.
• Monitoring the actions of management from the angle of legal compliances.
• Investment and Capital expenditure decisions
• Risk Management policies
• Appointing and discharging of members of NOKIA leadership team(CEO,CFO)
• Independent directors determine the compensation as well as the remuneration of CEO with the help of Personal committee.
Board of Directors have three integral parts that help them to take decisions by providing them necessary supports.
1. Internal Audit Committee
2. Corporate Governance
3. Nomination Committee
ELECTION, COMPOSITION AND STRUCTURE OF BOARD OF DIRECTORS
In NOKIA there are 7-12 members have got elected every year in their general shareholder meeting. In NOKIA their leadership structure consist of Chairman and vice chairman and all the independent directors are getting elected by the Corporate Governance and Nomination Committee. Nokia doesn’t have any policy to distinguish the roles of Chairman and CEO but their activities are only in the favour of company needs and shareholder value according to the situation and time. NOKIA has its own code of ethics, code of conduct which is applicable to all the directors , CFO,CEO and all the company employees .
The man roles of audit committee is not only to monitor all the financial activite of NOKIA but also they keep an eye if the Board of Directors oversight
• Quality and integrity of financial activities and their disclosures
• Company’s financial statement
• Interdependence of external and internal...