Corporate Governance

Corporate governance describes the framework for managing and supervising a commercial entity. It includes the division of responsibility amongst the different management and control instances within the company as well as principles for corporate leadership and control which are transparent, responsible and increase value.

EWE AG has committed itself to the principles of good, responsible corporate governance. The company is not publicly listed. Its capital market orientation is dominated by the issue of two Eurobonds in 2004 with a total volume € 1.5bn, which were successfully placed with international institutional investors.

The Board of Management and the Supervisory Board therefore consider well-functioning corporate governance to be an important means of consolidating and deepening the trust placed in EWE by the company’s customers, staff, business partners, shareholders and investors.

In February 2002 the Government Commission of the German Corporate Governance Code convened by the Federal Ministry of Justice presented the German Corporate Governance Code. This set of rules – its current version was published on 14 June 2007 – contains important legal directives on the management and control of publicly listed German companies as well as standards of good, trustworthy corporate governance recognised and required internationally.

EWE AG organises its business in line with the principles laid down in the German Corporate Governance Code. According to Section 161 of the German Stock Corporation Act, publicly listed companies are obliged to issue an annual statement on whether they are and intend to remain in compliance with the recommendations of the Code or which of its recommendations they have not applied. Despite the fact that EWE is not a publicly listed company, the Board of Management and Supervisory Board issue this declaration of confirmity, as it is known, every year.