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2.2 Legal structure and management of the Group
Einhell Germany AG, Landau an der Isar, holds direct and indirect shareholdings in a total of 46 subsidiaries, which each form separate legal enti- ties. It holds 100% of the shares in subsidiaries with a centralised or special function such as ser- vices, product sourcing/product processing, pro- curement/purchasing and quality control/quality assurance. Moreover, Einhell Germany AG also generally holds 100% in the global distribution companies.
In all consolidated subsidiaries where Einhell Ger- many AG does not hold all the shares, Einhell Ger- many AG has a direct or indirect majority share- holding.
With regard to the responsibilities of the Einhell Group companies, all activities that can be centralised are carried out at just one location. Product processing, the search for factories, their auditing and certification, procurement, services, control- ling, financing, IT and other administrative activi- ties, for example, are carried out centrally by the Group companies in Germany and China. This organisational structure within the Group allows all distribution companies to focus on their core functions. Einhell is also in a position to press ahead with international expansion as each distribution company has a similar structure and the business model can be efficiently rolled out in additional countries. As organic growth offers great potential, the organisation and efficient development of the Einhell Group’s business model are among the management’s most important re- sponsibilities.
The Group structure changed as follows during financial year 2022:
In the 2022 financial year, the Einhell Group founded Einhell Canada Holding Ltd. in Vancou- ver, Canada and acquired Outillages King Canada Inc. in Dorval, Canada. The Group holds 100% of the shares in Einhell Canada Holding Ltd. and 66.7% in Outillages King Canada Inc. In November 2022, the Group acquired another company in Tampere, Finland. Einhell Germany AG holds
100% of the shares in Einhell Finland Oy, and Ein- hell Finland Oy holds 100% of the shares in Su- omen Finland Oy, a company that has no business operations of its own.
b) Management and control
Responsibility for the business activities of the Einhell Group lies with the Board of Directors of Einhell Germany AG. This comprised four members at the time of preparation of the annual financial statements, consolidated financial statements and management report. The Board of Directors manages, organises and monitors strategies and operational business processes for the whole Group. Responsibilities within the Board of Directors are allocated based on the departments assigned to the respective member.
The Chairman of the Board of Directors is responsible for sales, procurement, marketing, product management and corporate strategy.
The Chief Financial Officer is responsible for finance and accounting, tax, legal, internal audit, controlling, investor relations, human resources and maintenance.
The Chief Technical Officer is responsible for tech- nology, product development, quality control, supply chain management and production.
The Chief IT and Digitization Officer is responsible for IT, digitalisation and services.
The Board of Directors supervises the specialists and managers in the relevant departments and relies upon the corresponding hierarchy of divisional and departmental management at Einhell Germany AG, and on Managing Directors and their specialists and managers in the subsidiaries. The Board of Directors seeks to ensure flat hierarchies and makes sure to maintain direct contact with employees and specialist staff in all divisions. Regular meetings of the Board of Directors and of individual departments, as well as divisional and cross-departmental meetings when required, ensure efficient communication and information flow to all responsible parties.
The Supervisory Board of Einhell Germany AG, which consists of three members, monitors and advises the Board of Directors in accordance with
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