The Board’s formal work plan
The work of the Board of Directors is governed by an annual work plan that regulates the Board’s internal division of work, the decision-making structure of the company, the authorised company signatories, the Board’s meeting schedule and the duties of the Chairman of the Board. As a general principle, the Board’s work follows a fixed procedure devoted to satisfying the Board’s need for information and ensuring an appropriate division of work between the Board and the President. The Board has established special instructions for the President of the company that form part of the Board’s work plan. The Board supervises the President’s work and is responsible for ensuring that the company’s organisation, management and guidelines for management of the company’s funds are appropriately structured. Furthermore, the Board is responsible for the development and follow-up of the company’s strategies through plans and targets, decisions regarding business acquisitions and divestments, major investments, management appointments and remuneration, and continuous follow-up of the business during the year.
The work of the Board of Directors in 2010
During the 2010 financial year, PA Resources’ Board of Directors held 21 meetings, of which one was the statutory Board meeting. Several meetings were held by telephone. The work plan states that the Board must hold a minimum of six ordinary Board meetings per calendar year. The ordinary Board meetings follow an established agenda which includes an operating report from the President, financial reports, investment and financing matters, acquisition matters and strategic issues. Important issues discussed during the 2010 financial year included production and development matters, capitalisation and financing matters, strategy matters, environmental issues, pricing matters and the Group’s future organisation and structure.
The annual evaluation of the Board and its work was performed by an independent consultancy engaged for the purpose. The evaluation covered such factors as the Board’s working methods, composition, competencies and internal communication process.