Piovan S p A : 30.03.2021 - Corporate Governance and Ownership Structure Report

CORPORATE

GOVERNANCE

AND

OWNERSHIP

STRUCTURE

REPORT

pursuant to Article 123-bis of Legislative Decree No. 58 of February 24, 1998

Issuer: Piovan S.p.A.

Website: www.piovangroup.com

Reporting Year: 2020

Approval date of Report: March 19, 2021

CONTENTS
GLOSSARY.......................................................................................................................................	6
1. ISSUER PROFILE ......................................................................................................................	8

2. INFORMATION ON THE OWNERSHIP STRUCTURE (as per Art. 123-bis, paragraph 1, CFA) at

31/12/2018	....................................................................................................................................	9
a.	Structure of the share capital (as per Art. 123-bis, paragraph 1, letter a), CFA) ......	9

1. Restriction on the transfer of shares (as per Art. 123-bis, paragraph 1, letter b),

	CFA) ...........................................................................................................................	9
c.	Significant holdings (as per Art. 123-bis, paragraph 1, letter c), CFA) ......................	9

1. Securities which confer special rights (as per Art. 123-bis, paragraph 1, letter d),

CFA) ...........................................................................................................................

9

1. Employee shareholdings: voting mechanism (as per Art. 123-bis, paragraph 1,

	letter e), CFA)...........................................................................................................	10
f.	Voting restrictions (as per Art. 123-bis, paragraph 1, letter f), CFA).......................	11
g.	Shareholder agreements (as per Art. 123-bis, paragraph 1, letter g), CFA)............	11

1. Change of control clause (as per Art. 123-bis, paragraph 1, letter h), CFA) and statutory provisions concerning Public Purchase Offers (Article 104, paragraph 1-

ter and 104-bis, paragraph 1, CFA) .........................................................................

11

1. Power to increase the share capital and authorization to purchase treasury shares

(as per Art. 123-bis, paragraph 1, letter m), CFA) ...................................................

12

1. Management and Coordination Activities (as per Art. 2497 and subsequent of the

	C.C.) .........................................................................................................................	12
3.	COMPLIANCE (as per Article 123-bis, paragraph 2, letter a), CFA) ......................................	13
4.	BOARD OF DIRECTORS .........................................................................................................	14

4.1 Appointment and replacement (as per Article 123-Bis, paragraph 1, letter L), CFA)

................................................................................................................................. 14

4.2	Composition (as per Article 123-bis, paragraph 2(d) and (d-bis), CFA) ...................	17
4.3	Role of the Board of Directors .................................................................................	20
4.4	Executive bodies ......................................................................................................	24
4.4.1	Chief Executive Officers......................................................................................	24
4.4.2	Chairperson of the Board of Directors ...............................................................	24
4.4.3	Executive committee..........................................................................................	29
4.4.4	Reporting to the Board.......................................................................................	29
4.5	Other Executive Directors........................................................................................	29
4.6	Independent Directors.............................................................................................	29
4.7	Lead Independent Director......................................................................................	30
3 Piovan S.p.A. - Corporate Governance and Ownership Structure Report

5. PROCESSING OF CORPORATE INFORMATION......................................................................

31

6. INTERNAL COMMITTEES TO THE BOARD (as per Article 123-bis, paragraph 2, letter d) CFA)31

7. NOMINATION AND REMUNERATION COMMITTEE .............................................................	32
	7.1	Composition and functioning of the nomination and remuneration committee ....	32
	7.2	Duties of the committee..........................................................................................	33
8.	REMUNERATION OF DIRECTORS ..........................................................................................	35
9. CONTROL, RISK AND SUSTAINABILITY COMMITTEE.............................................................	35
	9.1	Composition and functioning of the Control, Risk and Sustainability Committee...	35
	9.2	Control, Risk and Sustainability Committee functions.............................................	36
10.	INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM .....................................................	38
	10.1	Director in charge of the Internal Control and Risk Management System..............	40
	10.2	Internal Audit Manager...........................................................................................	40
	10.3	Model as per Legislative Decree 231/2001 .............................................................	41
	10.4	Independent Audit Firm...........................................................................................	42
	10.5	Executive Officer for Financial Reporting ................................................................	43
	10.6	Co-ordination of the parties involved in the internal control and risk management
		system .....................................................................................................................	44
11.	DIRECTORS' INTERESTS AND RELATED PARTY TRANSACTIONS ...........................................	45
	11.1	Policy for related party transactions .......................................................................	45
	11.2	Related Party Transactions Committee...................................................................	45
	11.3	Directors' interests ..................................................................................................	46
12.	APPOINTMENT OF STATUTORY AUDITORS..........................................................................	46
13.	COMPOSITION AND OPERATION OF THE BOARD OF STATUTORY AUDITORS (as per Article
123-bis, paragraph 2, letters d) and d-bis) CFA) ..........................................................................	49
14.	RELATIONS WITH SHAREHOLDERS.......................................................................................	53
15.	SHAREHOLDER MEETINGS (as per Article 123-bis, paragraph 2, letter c), CFA) ..................	54
16.	ADDITIONAL CORPORATE GOVERNANCE PRACTICES ..........................................................	56
17.	CHANGES SUBSEQUENT TO THE YEAR-END.........................................................................	56
18.	CONSIDERATIONS ON THE LETTER OF THE CHAIRPERSON OF THE CORPORATE
GOVERNANCE COMMITTEE .........................................................................................................	56
	ANNEX 1 .............................................................................................................................	58
TABLES..........................................................................................................................................	61
	TABLE 1: OWNERSHIP STRUCTURE ....................................................................................	61

4 Piovan S.p.A. - Corporate Governance and Ownership Structure Report

TABLE 2: STRUCTURE OF THE BOARD OF DIRECTORS AND COMMITTEES.........................	62
TABLE 3: STRUCTURE OF THE BOARD OF STATUTORY AUDITORS .....................................	64

5 Piovan S.p.A. - Corporate Governance and Ownership Structure Report