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.

NCC's operations require a considerable amount of delegated responsibility. Procedures have been formulated within the Group in order to clarify exactly who is to do what at each stage of the decision-making process.

In addition to strategic and organizational matters, the areas regulated include investments and divestments, rental and leasing agreements, financing, sureties, guarantees, the assessment of tenders and business agreements.

The number of 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 CEO and Chief Financial Officer.

Tenders for projects exceeding SEK 300 M are subject to special assessment and must be approved by the CEO. Tenders for projects exceeding SEK 500 M must be confirmed by NCC AB’s Board. Proprietary housing and property 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.

Governance of business areas

The Group comprises business areas that constitute separate subsidiaries managed by presidents. Each business area has a Board of Directors, of which, among others, NCC AB’s CEO, Chief -Financial Officer and Senior Legal Counsel are members. For certain decisions, the approval of the CEO or NCC AB’s Board Chairman or Board of Directors is required. The decision-making procedure consists of proposals, endorsement, decisions and confirmation. A matter requiring a decision is normally processed by the entity that initiated the matter or which is responsible for it in terms of function. Many types of decisions are preceded by consultation.

 

Håkan Broman. Photo/illustration: Sten Jansin
Håkan Broman

General Counsel, NCC Group