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|  | The distribution of work between the board of directors and the Chief Executive Officer is regulated in the rules of procedure for the board of directors and in the guidelines for the Chief Executive Officer. The Chief Executive Officer is responsible for implementing the business plan as well as day-to-day management of the Company’s affairs and the daily operations of the Company. This means that the Chief Executive Officer makes decisions on those issues that can be considered to fall under the day-to-day management of the Company.
The Chief Executive Officer may also take action without the authorisation of the board, in matters which, considering the scope and nature of the Company’s business, are unusual or of great importance, and awaiting a decision from the Board would cause substantial trouble for the Company’s business. Instructions to the Chief Executive Officer also regulate responsibilities for reporting to the board of directors. The board receives a monthly written report containing information following up the Company’s sales, orders statistics, operating results and working capital’s developments. Moreover, the material contains comments from the Chief Executive Officer and the Chief Financial Officer (e.g. brief comments on the different markets). During months when the board meets the monthly report is more extensive and also includes a balance sheet and cash flow statement, among other things.
Every year the senior executives formulate a strategy proposal, which is discussed and adopted at the board meeting held about halfway through the year. The work with the business plan (including the budget for the coming year) is usually carried out “bottom-up” and based on the strategy adopted by the board of directors. The Chief Executive Officer and the Chief Financial Officer present the business plan proposal to the board of directors. After the board discusses the business plan, it is usually adopted at the last meeting during the autumn. Moreover, the Company usually issues an updated forecast at the end of each quarter in conjunction with the quarterly reports.
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