This section sets out the arrangements the Board has put in place to help ensure that it fulfils its corporate governance obligations, including the application of the principles of the Norwegian Code of Practice for Corporate Governance.
Legal and regulatory framework
Subsea7 S.A. is a ‘société anonyme’ organised in the Grand Duchy of Luxembourg under the Company Law of 1915, as amended, being incorporated in Luxembourg in 1993, and acts as the holding company for all of the Group’s entities.
Subsea7 S.A.’s registered office is located at 412F, route d’Esch, L-1471 Luxembourg. The Company is registered with the Luxembourg Register of Commerce and Companies under the designation ‘R.C.S. Luxembourg B 43172’ and its LEI Code is 222100AIF0CBCY80AH62
As a company incorporated in Luxembourg and with shares traded on the Oslo Børs and ADRs traded over-the-counter in the US, Subsea7 S.A. is subject to Luxembourg laws and regulations with respect to corporate governance. As a company listed on the Oslo Børs, where its shares are actively traded, the Company follows the Norwegian Code of Practice for Corporate Governance on a ‘comply or explain’ basis, where this does not contradict Luxembourg laws and regulations. The Norwegian Code of Practice for Corporate Governance is available at http://www.nues.no/en/.
The Group’s corporate governance policies and procedures are explained below, with reference to the principles of corporate governance as set out in the sections identified in the Norwegian Code of Practice for Corporate Governance.
Articles of Incorporation – nature of the Group’s business
As stated in its Articles of Incorporation, Subsea7 S.A.’s business activities are as follows:
“The objects of the Company are to invest in subsidiaries which predominantly will provide subsea construction, maintenance, inspection, survey and engineering services, in particular for offshore energy related industries. The Company may further itself provide such subsea construction, maintenance, inspection, survey and engineering services, and services ancillary to such services.
The Company may, without restriction, carry out any and all acts and do any and all things that are not prohibited by law in connection with its corporate objects and to do such things in any part of the world whether as principal, agent, contractor or otherwise. More generally, the Company may participate in any manner in all commercial, industrial, financial and other enterprises of Luxembourg or foreign nationality through the acquisition by participation, subscription, purchase, option or by any other means of all shares, stocks, debentures, bonds or securities; the acquisition of patents and licenses which it will administer and exploit; it may lend or borrow with or without security, provided that any monies so borrowed may only be used for the purposes of the Company, or companies which are subsidiaries of or associated with or affiliated to the Company; it may grant assistance, including, without limitation, grant parent company guarantees, to any affiliated company and take any measure for the control and supervision of such companies; in general it may undertake any operations directly or indirectly connected with these objects.”
The full text of the Company’s Articles of Incorporation, as amended, is available under Governance Downloads
The Board of Directors has set strategies and targets for the Company’s business. The Group structures itself around its diversified strengths, reporting through two operational business units: Subsea and Conventional, and Renewables.
The Subsea and Conventional business unit is a global leader in offshore energy services delivering Design, Engineering, Procurement, Construction and Installation (EPCI), and Decommissioning projects in all water depths, operating under the Subsea7 brand.
The Renewables business unit is an experienced partner for the delivery of offshore wind farm projects and specialist foundations and cable lay services, operating under the Seaway7 brand.
Board of Directors: composition and independence
As a Luxembourg incorporated entity, the Company does not have a corporate assembly.
The Board of Directors comprises seven Directors, with the majority of the Directors during any financial year, considered independent in accordance with the rules of the Oslo Børs on which Subsea7 S.A. is listed and the independence criteria of the Norwegian Code of Practice for Corporate Governance.
Biographies of the individual Directors can be found here.
The Board of Directors endeavours to ensure that it is constituted by Directors with a varied background and with the necessary expertise, diversity and capacity to ensure that it can effectively function as a cohesive body. Prior to proposing candidates to the relevant general meeting for election to the Board of Directors, the Corporate Governance and Nominations Committee seeks to consult with the Company’s major shareholders before recommending candidates to the Board of Directors.
If there is a vacancy on the Board of Directors, the remaining Directors appointed at a general meeting have the right to appoint a replacement Director until the next meeting of shareholders who will be asked to confirm such appointment.
With the exception of a candidate recommended by the Board of Directors, or a Director whose term of office expires at a general meeting of the Company, no candidate may be appointed unless at least three days and no more than 22 days before the date of the relevant meeting, a written proposal, signed by a duly authorised shareholder, shall have been deposited at the registered office of the Company together with a written declaration, signed by the proposed candidate, confirming his or her wish to be appointed.
The Directors of the Board are encouraged to hold shares in the Company as the Board of Directors believes it promotes a common financial interest between the members of the Board of Directors and the shareholders of the Company.