Corporate Governance and Internal control
The Group comprises business areas that constitute separate subsidiaries managed by presidents. Each business area has a Board of Directors.
Governance of Business Areas
The Group is composed of business areas. Each business area is led by a business area manager and has a board of directors whose members include NCC AB's CEO, CFO and Senior Legal Counsel. For certain decisions, the approval of the CEO, NCC AB's Board Chairman or Board of Directors is required. The individual Group-staff heads are responsible for Group-wide functional issues that fall under the position and mandate the of the individual head of Group staff.
Internal Governance and Control
NCC's operations require a considerable amount of delegated responsibility. A Group-wide directive is in place to clarify exactly who is entitled to make decisions concerning various matters. In addition to strategic and organizational matters, the areas regulated include investments and divestments, rental and leasing agreements, financing, sureties and contracting undertakings. There are also a number of other Group-wide governing documents concerning such matters as communication, finance, Code of Conduct,the environment and work environment.
The number of ongoing projects in production varies from year to year but totals several thousands. The organization of each project varies according to the specific project's size and complexity. Each project is led by a project manager who is responsible for product format, purchases, financial aspects, production, quality, completion and handover to the customer. Major projects are monitored on a monthly basis by the business area manager, the CEO and CFO.
Tenders for projects exceeding SEK 500 M are subject to special assessment at Group level and are approved by the CEO. The Board’s Project Committee is involved in projects exceeding SEK 1,500 M. Projects exceeding SEK 300 M are also followed up via the NCC Project Trend Report (PTR) process. Proprietary property development projects representing an investment exceeding SEK 50 M must be approved by the CEO and such projects exceeding SEK 150 M must be authorized by NCC AB’s Board. Decisions regarding investments of less than SEK 50 M are the responsibility of the particular business area.