Corporate Governance
Corporate Governance at Kaupthing Bank is defined as the framework by which the Bank is directed and controlled and the relationships between the management, the Board of Directors, shareholders and other stakeholders, such as employees, clients and lenders.
The aim of the Corporate Governance framework is to ensure disclosure and transparency, to define the responsibilities of the Board and the management, to define the rights and role of shareholders and stakeholders, to ensure the equitable treatment of shareholders and to avoid
conflicts of interests.
It is the objective of the management and the Board to have transparent and effective internal controls within the Group. An Internal Control and Procedural (ICP) Handbook reflects the most recent rules and procedures in effect at the Group. The ICP Handbook is submitted annually in September to the Board of Directors for approval. The latest version of the ICP Handbook was published in December 2007.
In 2004, the Iceland Chamber of Commerce, the Iceland Stock Exchange (now OMX Nordic Exchange Iceland) and the Confederation of Icelandic Employers issued Guidelines on Corporate Governance, which were later reviewed in 2005. It is the opinion of the Board that the Bank is in full compliance with these guidelines.