The Supervisory Board supervises the policies of the executive management and the general course of affairs of Philips and advises the executive management thereon.
The Supervisory Board, in the two-tier corporate structure under Dutch law, is a separate and independent body from the Board of Management. That independent character is also reflected in the requirement that members of the Supervisory Board can neither be a member of the Board of Management, member of the Executive Committee nor an employee of the Company.
The Supervisory Board, acting in the interests of Philips and taking into account the relevant interest of Philip’s stakeholders, supervises and advises the Board of Management and the Executive Committee in performing its management tasks and setting the direction of the Group’s business, including (i) achievement of the Company’s objectives, (ii) corporate strategy and the risks inherent in the business activities, (iii) the structure and operation of the internal risk management and control systems, (iv) the financial reporting process, and (v) compliance with legislation and regulations.
Major management decisions and Philips’ strategy are discussed with and approved by the Supervisory Board. In its report, the Supervisory Board describes its activities in the financial year, the number of committee meetings and the main items discussed.