CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE REPORT

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

(Traditional Administration and Control Model)

Issuer: Piovan S.p.A.

Website:www.piovangroup.com

Reporting Year: 2021

Approval date of Report: March 23, 2022

CONTENTS

GLOSSARY ....................................................................................................................................... 6

  • 1. ISSUER PROFILE ...................................................................................................................... 8

  • 2. INFORMATION ON THE OWNERSHIP STRUCTURE (pursuant to Article 123-bis, paragraph 1, CFA) at 31/12/2021 ........................................................................................................................ 9

    • a. Structure of the share capital (pursuant to Article 123-bis, paragraph 1, letter a), CFA)

      ....................................................................................................................................... 9

    • b. Restriction on the transfer of shares (pursuant to Article 123-bis, paragraph 1, letter

      b), CFA) ........................................................................................................................ 10

    • c. Significant holdings (pursuant to Article 123-bis, paragraph 1, letter c), CFA) ........... 10

    • d. Shares which confer special rights (pursuant to Article 123-bis, paragraph 1, letter d),

      CFA) ............................................................................................................................. 10

    • e. Employee shareholdings: voting mechanism (pursuant to Article 123-bis, paragraph

      1, letter e), CFA) .......................................................................................................... 11

    • f. Voting restrictions (pursuant to Article 123-bis, paragraph 1, letter f), CFA) ............. 12

    • g. Shareholder agreements (pursuant to Article 123-bis, paragraph 1, letter g), CFA) .. 12

    • h. Change of control clauses (pursuant to Article 123-bis, paragraph 1, letter h), CFA)

      and statutory provisions concerning Public Purchase Offers (pursuant to Article 104,

      paragraph 1-ter, and Article 104-bis, paragraph 1, CFA) ............................................. 12

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

      (pursuant to Article 123-bis, paragraph 1, letter m), CFA) .......................................... 13

    • j. Management and Coordination activities (pursuant to Article 2497 and subsequent

      of the Civil Code) ......................................................................................................... 13

  • 3. COMPLIANCE (pursuant to Article 123-bis, paragraph 2, letter a), first part, CFA .............. 15

  • 4. BOARD OF DIRECTORS ......................................................................................................... 15

    • 4.1 Role of the Board of Directors ..................................................................................... 15

    • 4.2 Appointment and replacement (pursuant to Article 123-bis, paragraph 1, letter l),

      first part of the CFA) .................................................................................................... 19

    • 4.3 Composition (pursuant to Article 123-bis, paragraph 2(d) and (d-bis), CFA) .............. 23

    • 4.4 Functioning of the Board of Directors (pursuant to Article 123-bis, paragraph 2, letter

      d), CFA) ........................................................................................................................ 26

    • 4.5 Role of the Chairperson of the Board of Directors ...................................................... 28

    • 4.6 Executive Directors ...................................................................................................... 29

    • 4.6.1 Chief Executive Officers ................................................................................................. 29

    • 4.6.2 Chairperson of the Board of Directors ........................................................................... 36

    • 4.6.3 Executive Committee ..................................................................................................... 43

  • 4.6.4 Disclosure to the Board by Directors and delegated bodies .......................................... 43

  • 4.6.5 Other Executive Directors .............................................................................................. 43

  • 4.7 Independent Directors and Lead Independent Director ............................................................ 43

  • 4.7.1 Independent Directors ................................................................................................... 43

  • 4.7.2 Lead Independent Director ............................................................................................. 45

  • 5. MANAGEMENT OF CORPORATE INFORMATION .................................................................. 45

  • 6. INTERNAL COMMITTEES TO THE BOARD (pursuant to Article 123-bis, paragraph 2, letter d),

CFA)45

7. SELF-ASSESSMENT AND SUCCESSION OF DIRECTORS - NOMINATION AND REMUNERATION

COMMITTEE ................................................................................................................................. 46

7.1 Self-assessment and succession of Directors .............................................................. 46

7.2 Nomination and Remuneration Committee ............................................................... 47

Composition and functioning of the committee ....................................................................... 47

Functions of the committee ...................................................................................................... 48

8. REMUNERATION OF DIRECTORS .......................................................................................... 50

9. INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM - CONTROL, RISKS AND

SUSTAINABILITY COMMITTEE ...................................................................................................... 50

9.1 Chief Executive Officer ................................................................................................. 52

9.2 Control, Risks and Sustainability Committee .............................................................. 52

Composition and functioning of the Committee ....................................................................... 52

Control, Risks and Sustainability Committee functions ............................................................ 53

  • 9.3 Internal Audit Manager ............................................................................................... 55

  • 9.4 Organization Model pursuant to Legislative Decree No. 231/2001 ............................ 57

  • 9.5 Independent Auditing Firm ......................................................................................... 59

  • 9.6 Executive Officer for Financial Reporting and other corporate roles and functions... 60

  • 9.7 Co-ordination of the parties involved in the Internal Control and Risk Management

    System ......................................................................................................................... 62

  • 10. DIRECTORS' INTERESTS AND RELATED PARTY TRANSACTIONS ........................................... 63

    • 10.1 Procedure for related party transactions .................................................................... 63

    • 10.2 Related Party Transactions Committee ....................................................................... 63

    • 10.3 Directors' interests ...................................................................................................... 65

  • 11. BOARD OF STATUTORY AUDITORS ....................................................................................... 65

    • 11.1 Appointment and replacement ................................................................................... 65

    • 11.2 Composition and functioning (pursuant to Article 123-bis, paragraph 2, letters d) and d-bis) CFA) ................................................................................................................... 68

  • 12. RELATIONS WITH SHAREHOLDERS ....................................................................................... 74

4

  • 13. SHAREHOLDERS' MEETINGS ................................................................................................. 75

  • 14. FURTHER CORPORATE GOVERNANCE PRACTICES (pursuant to Article 123-bis, paragraph 2,

letter a), second section, CFA) ..................................................................................................... 78

  • 15. CHANGES SUBSEQUENT TO THE YEAR-END ......................................................................... 78

  • 16. CONSIDERATIONS ON THE LETTER OF THE CHAIRPERSON OF THE CORPORATE

GOVERNANCE COMMITTEE ......................................................................................................... 78

ATTACHMENT 1 ......................................................................................................................... 82

TABLES .......................................................................................................................................... 85

TABLE 1: INFORMATION ON THE OWNERSHIP STRUCTURE AS AT 31/12/2021 ....................... 85

TABLE 2: STRUCTURE OF THE BOARD OF DIRECTORS AT THE END OF THE FINANCIAL YEAR ... 87

TABLE 3: STRUCTURE OF THE INTERNAL BOARD COMMITTEES AT YEAR-END ......................... 89

TABLE 4: STRUCTURE OF THE BOARD OF STATUTORY AUDITORS AT THE END OF THE

FINANCIAL YEAR .......................................................................................................... 90

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Piovan S.p.A. published this content on 30 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2022 15:32:15 UTC.