The Board of Directors seeks to provide effective governance of business and affairs to ensure long-term benefits of REC Silicon’s stakeholders, and puts emphasis on transparency and equal treatment of its shareholders. Approved and implemented Corporate Governance principles are built on a set of rules and procedures, which, along with the charters and key practices of the Board Committees, provide the framework for the governance in REC Silicon. The Board will annually review the Corporate Governance policy.
REC Silicon's business
The purpose of the Company is described in the Articles of Association § 3: “The Company’s purpose is development and sale of products and services related to renewable energy sources, and to perform other financial operations related to such. The Company may, through subscription of shares or in any other ways, including granting of loans, acquire interests in other companies with identical or similar purposes”. REC Silicon believes the solar industry will play a key role as a long-term supplier of sustainable energy and its business is focused on delivering silane and polysilicon products new process and product technologies as well as through continuous productivity improvement.
Equity and dividend
The REC SIlicon’s ambition is to give its shareholders a high and stable return on their investment and to be competitive compared with alternative investment opportunities with comparable risk. This should be achieved, first and foremost, through strong and profitable growth. To support commited investments and productivity improvements, the Board believes retained earnings should be put to profitable use within the Company. Accordingly there has been no distribution of dividends to the shareholders since the Company was publicly listed in 2006. The Board considers this approach most likely to continue for the next few years. The Board will, however, make a yearly assessment based on the goals and strategies and the financial results of the Company.
REC Silicon has one class of shares and each share confers one vote at the general meeting. The Articles of Association contain no restrictions on voting rights.
The Board has established one committee, the Audit Committee, Read more about the responsibilities of the committees in the Board of Directors' report on Corporate Governance in the Annual Report.
The Articles of Association sets out that the Company shall have a Nomination Committee with three members. The members are elected by the AGM for a term of two years and the AGM appoints the chairman of the committee.