About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
The GMC is the highest decision-making body in the Rabobank
governance. It consists of chairmen of all local supervisory
bodies, who represent the members of their local Rabobanks in
the GMC. The GMC has around 100 members and meets at least
twice a year. It focuses on the strategic framework and on the
basic premises of the identity of Rabobank, from the cooperative
to local Rabobanks and all other group entities. The GMC has
three permanent committees: the Urgency Affairs Committee,
the Coordination Committee and the Committee on Confidential
Matters.
On behalf of the members, the GMC safeguards continuity while
also acting as a custodian of collective values. The GMC evaluates
the governance and the banking business on the basis of
commonly agreed strategic principles. It appoints members of
the Supervisory Board of Rabobank on the recommendation of
the Supervisory Board, who appointthe statutory members ofthe
Managing Board. The Supervisory Board supervises the Managing
Board and both the Supervisory Board and the Managing Board
are accountable to the GMC.
To perform these functions, the GMC has several formal tasks and
responsibilities. The GMC has the power to amend the articles of
association or change the legal status of Rabobank. It adopts the
annual accounts and has advisory and approval rights for major
decisions taken by the Managing Board. The GMC determines, for
instance, the basic premises of Rabobank's identity and strategic
frameworks and the main points ofthe annual strategy and
budget. Considerable changes in domestic retail banking and the
increasing digitalization of financial services prompted the GMC
to initiate an internal discussion on the renewal ofthe cooperative
as well as on the revitalization of Rabobank's membership. To this
end, it established a special, temporary committee to explore
these possibilities.
The transformation of governance has reinforced our awareness
that member engagement and involvement are essential to a
cooperative bank. These aspects are what set us apart from our
competitors. The regime shift has, moreover, triggered new
initiatives to solidify cooperative aspects. It has, for example,
initiated our new Youth Forum, which includes a young member
representative from each local Rabobank. Rabobank believes that
permanent dialogue with this member category is very important
for the future development ofthe bank.
Since the new governance became effective, the management
teams at the local Rabobanks are entrusted with the important
task of acting in harmony with the cooperative spirit, and of
offering corresponding financial services. They have important
local responsibilities as laid down in the internal local Rabobank
rules. The chairs of local management teams have a mandate
position from the Managing Board to safeguard their local
orientation and firmly anchor their local Rabobanks in these
communities. Chairmen ofthe local managementteam can
exercise their authority in order to provide high quality local
banking services. They can also transform the concept of
cooperative identity from idea into reality atthe local level. In this
respect, local staff participate actively in social and virtual
networks in order to maintain close connections to the local
community.
Banking Business
Tactical, operational and policy-related banking are addressed in
the Directors'Conference. This body is composed ofthechairmen
of local management teams, the Managing Board and the
directors of divisions which support local Rabobanks. The
Directors' Conference is an important and influential platform
with a preparatory, informative and advisory role for proposals
and policies concerning local Rabobanks. The Conference also
fulfills an intermediary position between the highest echelons of
the bank and its local divisions, especially with regard to
safeguarding clients' interests and needs.
Annual Report 2018 - Corporate Governance
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