Audited by PwC

Changes since last year

In 2008 Hans Werdelin retired from the Board of Directors at his own request. Going forward the Board will consist of six members elected at the Annual Shareholders’ Meeting and three employee representatives.

In order to strengthen the Board’s focus on auditing, accounting, internal control, and financial reporting, and to comply with a statutory requirement that comes into force in 2009, Novozymes established an Audit Committee in 2008, which is a subcommittee under the Board of Directors. The aim of the Audit Committee is to:

  • Monitor the financial reporting process
  • Monitor whether the company’s internal controls are functioning effectively
  • Monitor the statutory audit of the Group financial statements
  • Check and monitor the auditor’s impartiality, including oversight of nonaudit services
  • Monitor the procedure for handling complaints concerning the above

The Audit Committee comprises Kurt Anker Nielsen (Chairman), Walther Thygesen, and Jerker Hartwall. The Board of Directors considers that the members of the Audit Committee fulfill the requirements for accounting expertise and independence set out in the law.

The Charter of the Audit Committee can be found under “Corporate Governance/Audit Committee” at www.novozymes.com.

As part of the effort to ensure that Novozymes has well-functioning management systems in place at all times, the Board of Directors and Executive Management assess the quality of collaboration between the two bodies on an annual basis. The assessment was once again positive in 2008, and a number of minor areas for improvement were identified. This year’s assessment showed that utilization of the Board of Directors’ expertise in relation to specific projects and subjects has been improved as a result of focused sparring between members of the Board of Directors and Executive Management.

The Board of Directors maintains its assertion that retaining the ownership structure with A and B common stock is the best way of safeguarding Novozymes’ long-term development, and thus benefits the company’s stakeholders.