UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant To Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 21, 2015
ACE LIMITED
(Exact name of registrant as specified in its charter)
Switzerland
|
1-11778
|
98-0091805
|
||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Baerengasse 32
CH-8001 Zurich, Switzerland
(Address of principal executive offices)
Registrants telephone number, including area code: +41 (0)43 456 76 00
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers |
(e) On May 21, 2015, the company entered into executive management non-competition agreements (the Non-Compete Agreements) with the following executive managers of the company: Evan G. Greenberg, Chairman, President and CEO; Philip V. Bancroft, Chief Financial Officer; John W. Keogh, Vice Chairman and Chief Operating Officer, and Chairman, ACE Overseas General; John J. Lupica, Vice Chairman, and Chairman, InsuranceNorth America; and Joseph F. Wayland, General Counsel and Secretary.
The Non-Compete Agreements generally prohibit executives from engaging in, or soliciting clients, customers and employees of the company in connection with, any business competitive with the company for a period of 24 months following termination of employment. The Non-Compete Agreements restrictions take effect if the company terminates such managers employment. If the termination is for reasons other than disability, gross negligence or willful misconduct, in exchange for complying with the agreements restrictions, the executive will receive a payment equal to the sum of (i) two times annual base salary, (ii) two times the average of the bonuses paid to the executive for the prior three years, (iii) a pro rata annual bonus for the year of termination, and (iv) an amount equal to 24 months of the companys portion of the health and dental premium payments, and the executive will receive 24 months of continued vesting of certain equity awards granted before the date of the Non-Compete Agreement. In addition, in such circumstances, unvested restricted stock awards will continue to vest and unvested stock options shall continue to vest and become exercisable, in each case as if the executive remained employed for two years (unless the change in control provisions of the award apply).The executives forfeit their rights to the payment and continued vesting, and they must repay amounts already paid in cash or the value of shares received through equity awards, if applicable, if they violate any provision of a Non-Compete Agreement. The Non-Compete Agreements also require the executive to sign a waiver and release to receive payment and continued vesting.
Each Non-Compete Agreement is substantially in the form attached here to as Exhibit 10.1. The foregoing description of the Non-Compete Agreements does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Non-Compete Agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 5.03 | Amendment to the Articles of Incorporation or Bylaws; Change in Fiscal Year |
At the companys annual general meeting held on May 21, 2015, the companys shareholders approved amendments to the companys Articles of Association to implement requirements under the Swiss Ordinance Against Excessive Compensation in Listed Stock Companies (the Minder Ordinance) regarding compensation of the Board of Directors and executive management, elections, related corporate governance and certain other matters (together, the Amendments). The proposals to adopt the Amendments were previously disclosed in Agenda Item Numbers 9 and 10 in the Companys Definitive Proxy Statement as filed with the Securities and Exchange Commission on April 8, 2015, with the precise amendments marked to show changes set forth in Annex A and Annex B to such proxy statement. The companys amended Articles of Association containing these amendments will become effective upon registration with the Commercial Register of the Canton of Zurich, Switzerland (the Swiss Commercial Register). Subject to the subsequent approval by Swiss Federal Commercial Register Office, the effective date of such registration is expected to be on or about May 22, 2015.
The foregoing description of the Amendments is qualified in its entirety by reference to the companys amended and restated Articles of Association attached hereto as Exhibit 3.1 and incorporated herein by reference.
On May 21, 2015, the Board of the company amended and restated its Organizational Regulations to make conforming changes to reflect the amendments to the companys Articles of Association as approved by shareholders at the annual general meeting, to clarify the powers and responsibilities of the Board of Directors, to streamline the sections discussing committees of the Board of Directors, including to incorporate committee charters into the Organizational Regulations, and to make certain editorial and re- numbering changes.
2
The foregoing description of the amendments to the Companys Organizational Regulations is qualified in its entirety by reference to the Companys amended and restated Organizational Regulations attached hereto as Exhibit 3.2 and incorporated herein by reference.
Item 5.07 | Submission of Matters to a Vote of Security Holders |
The company convened its annual general meeting of shareholders on May 21, 2015 pursuant to notice duly given. The agenda items submitted at the annual general meeting were passed. The matters voted upon at the meeting and the results of such voting are set forth below.
At the 2015 annual general meeting abstentions and broker non-votes were not considered in the tabulation of the vote (and thus should be disregarded) to determine approval of each of the items below. Approval of each item below (with the exception of Items 3 and 12) required the affirmative vote of a majority of the votes cast (in person or by proxy), as further described in the companys proxy statement filed on April 8, 2015, under the headings What is the Effect of Broker Non-Votes and Abstentions? and What Vote is Required to Approve Each Agenda Item?.
1. | Approval of the annual report, standalone financial statements and consolidated financial statements of ACE Limited for the year ended December 31, 2014 |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
283,128,263 | 36,057 | 1,164,042 | 0 |
2.2 | Allocation of disposable profit |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
283,897,579 | 29,474 | 401,309 | 0 |
2.3 | Distribution of a dividend |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
283,898,171 | 35,635 | 394,556 | 0 |
3. | Discharge of the Board of Directors |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
271,465,313 | 614,985 | 1,427,279 | 10,591,242 |
The voting results for Agenda Item No. 3 exclude shares held by the companys directors and executive officers, who are not permitted by law to vote their shares on the discharge of the Board of Directors.
4.1 | Election of PricewaterhouseCoopers AG (Zurich) as the companys statutory auditor until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
282,912,984 | 1,038,392 | 376,986 | 0 |
4.2 | Ratification of appointment of independent registered public accounting firm PricewaterhouseCoopers LLP (United States) for purposes of United States securities law reporting for the year ending December 31, 2015 |
3
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
282,745,313 | 1,206,547 | 376,501 | 0 |
4.3 | Election of BDO AG (Zurich) as special auditing firm until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
283,844,151 | 110,519 | 373,692 | 0 |
5.1 | Reelection of Evan G. Greenberg as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
267,978,907 | 4,620,321 | 1,137,892 | 10,591,242 |
5.2 | Reelection of Robert M. Hernandez as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
268,121,027 | 5,252,918 | 363,175 | 10,591,242 |
5.3 | Reelection of Michael G. Atieh as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
270,103,066 | 3,270,118 | 363,936 | 10,591,242 |
5.4 | Reelection of Mary A. Cirillo as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
269,526,430 | 3,806,739 | 403,951 | 10,591,242 |
5.5 | Reelection of Michael P. Connors as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
269,554,301 | 3,819,680 | 363,139 | 10,591,242 |
5.6 | Reelection of John Edwardson as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
270,085,095 | 3,289,050 | 362,975 | 10,591,242 |
5.7 | Reelection of Peter Menikoff as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
269,762,686 | 3,594,971 | 379,463 | 10,591,242 |
5.8 | Reelection of Leo F. Mullin as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,420,703 | 952,329 | 364,088 | 10,591,242 |
4
5.9 | Reelection of Kimberly Ross as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,360,620 | 1,016,008 | 360,492 | 10,591,242 |
5.10 | Reelection of Robert Scully as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,334,541 | 1,038,993 | 363,586 | 10,591,242 |
5.11 | Reelection of Eugene B. Shanks, Jr. as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,642,798 | 730,697 | 363,625 | 10,591,242 |
5.12 | Reelection of Theodore E. Shasta as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,695,322 | 677,888 | 363,910 | 10,591,242 |
5.13 | Reelection of David Sidwell as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,686,248 | 687,418 | 363,454 | 10,591,242 |
5.14 | Reelection of Olivier Steimer as director until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,625,016 | 749,143 | 362,961 | 10,591,242 |
6. | Election of Evan G. Greenberg as the Chairman of the Board of Directors until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
216,272,291 | 56,326,975 | 1,137,854 | 10,591,242 |
7.1 | Election of Michael P. Connors as Compensation Committee member until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
271,086,836 | 2,281,113 | 369,171 | 10,591,242 |
7.2 | Election of Mary A. Cirillo as Compensation Committee member until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
270,950,407 | 2,419,846 | 366,867 | 10,591,242 |
5
7.3 | Election of John Edwardson as Compensation Committee member until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
271,476,440 | 1,891,146 | 369,534 | 10,591,242 |
7.4 | Election of Robert M. Hernandez as Compensation Committee member until the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
269,281,810 | 4,085,914 | 369,396 | 10,591,242 |
8. | Election of Homburger AG as independent proxy until the conclusion of the companys next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
283,854,157 | 57,163 | 417,042 | 0 |
9. | Amendment of the Articles of Association to implement new requirements under the Minder Ordinance regarding elections, related corporate governance and certain other matters |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,273,679 | 1,081,848 | 381,593 | 10,591,242 |
10. | Amendments to the Articles of Association to implement new requirements under the Minder Ordinance regarding the compensation of the Board of Directors and Executive Management and related matters |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
198,087,122 | 75,000,615 | 649,383 | 10,591,242 |
11.1 | Compensation of the Board of Directors until the next annual general meeting |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
272,211,314 | 443,337 | 1,082,469 | 10,591,242 |
11.2 | Compensation of Executive Management for the next calendar year |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
209,163,151 | 63,897,136 | 676,833 | 10,591,242 |
12. | Advisory vote to approve executive compensation |
Shares Voted For |
Shares Voted Against | Shares Abstained | Broker Non-Votes | |||
246,001,640 | 27,325,999 | 409,481 | 10,591,242 |
6
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
Exhibit Number |
Description |
|
3.1 | Articles of Association of the company as amended | |
3.2 | Organizational Regulations of the company as amended | |
4.1 | Articles of Association of the company as amended (Incorporated by reference to Exhibit 3.1) | |
4.2 | Organizational Regulations of the company as amended (Incorporated by reference to Exhibit 3.2) | |
10.1 | Form of Executive Management Non-Competition Agreement |
7
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ACE LIMITED |
||
By: |
/s/ Joseph F. Wayland |
|
Joseph F. Wayland |
||
General Counsel |
DATE: May 21, 2015
EXHIBIT INDEX
Exhibit Number |
Description |
|
3.1 |
Articles of Association of the company as amended |
|
3.2 |
Organizational Regulations of the company as amended |
|
4.1 |
Articles of Association of the company as amended (Incorporated by reference to Exhibit 3.1) |
|
4.2 |
Organizational Regulations of the company as amended (Incorporated by reference to Exhibit 3.2) |
|
10.1 |
Form of Executive Management Non-Competition Agreement |
Exhibit 3.1
Die Gesellschaft kann im In- und Ausland Grundstücke erwerben, halten und veräussern. |
The Company may acquire, hold and sell real estate in Switzerland and abroad. |
|
b) Die Gesellschaft kann alle Geschäfte tätigen, die geeignet sind, den Zweck der Gesellschaft zu fördern und mit dem Zweck im Zusammenhang stehen. |
b) The Company may engage in all types of transactions and may take all measures that appear appropriate to promote the purpose of the Company or that are related to the same. |
|
II. Aktienkapital und Aktien |
II. Share Capital and Shares |
|
Artikel 3 Aktienkapital
a) Das Aktienkapital der Gesellschaft beträgt CHF 8279402749.80 und ist eingeteilt in 342832412 auf den Namen lautende Aktien im Nennwert von CHF 24.15 je Aktie. Das Aktienkapital ist vollständig liberiert. |
Article 3 Share Capital
a) The share capital of the Company amounts to CHF 8,279,402,749.80 and is divided into 342,832,412 registered shares with a nominal value of CHF 24.15 per share. The share capital is fully paid-in. |
|
b) Auf Beschluss der Generalversammlung können jederzeit Namenaktien in Inhaberaktien und Inhaberaktien in Namenaktien umgewandelt werden. |
b) Upon resolution of the General Meeting of Shareholders, registered shares may be converted into bearer shares and bearer shares may be converted into registered shares, at any time. |
|
Artikel 4 Bedingtes Aktienkapital für Anleihensobligationen und ähnliche Instrumente der Fremdfinanzierung
a) Das Aktienkapital der Gesellschaft wird im Maximalbetrag von CHF 796950000.00 durch Ausgabe von höchstens 33000000 vollständig zu liberierenden Namenaktien mit einem Nennwert von CHF 24.15 je Aktie erhöht, bei und im Umfang der Ausübung von Wandel- und/oder Optionsrechten, welche im Zusammenhang mit von der Gesellschaft oder ihren Tochtergesellschaften emittierten oder noch zu emittierenden Anleihensobligationen, Notes oder ähnlichen Obligationen oder Schuldverpflichtungen eingeräumt wurden/werden, einschliesslich Wandelanleihen. |
Article 4 Conditional Share Capital for Bonds and Similar Debt Instruments
a) The share capital of the Company shall be increased by an amount not exceeding CHF 796,950,000.00 through the issue of a maximum of 33,000,000 registered shares, payable in full, each with a nominal value of CHF 24.15 through the exercise of conversion and/or option or warrant rights granted in connection with bonds, notes or similar instruments, issued or to be issued by the Company or by subsidiaries of the Company, including convertible debt instruments. |
2
3
4
5
6
7
III. Organisation
|
III. Organization
|
|
A. Die Generalversammlung
|
A. The General Meeting
|
|
Artikel 9 Befugnisse
Die Generalversammlung ist das oberste Organ der Gesellschaft. Sie hat die folgenden unübertragbaren Befugnisse: |
Article 9 Authorities
The General Meeting is the supreme corporate body of the Company. It has the following non-transferable powers: |
|
1. die Festsetzung und Änderung der Statuten; |
1. to adopt and amend the Articles of Association; |
|
2. die Wahl und Abwahl der Mitglieder des Verwaltungsrats, des Präsidenten des Verwaltungsrats, der Mitglieder des Vergütungsausschusses, der Revisionsstelle und des unabhängigen Stimmrechtsvertreters; |
2. to elect and remove the members of the Board of Directors, the Chairman of the Board of Directors, the members of the Compensation Committee, the Auditors and the independent proxy; |
|
3. die Genehmigung des Lageberichts, der Jahresrechnung und der Konzernrechnung sowie die Beschlussfassung über die Verwendung des Bilanzgewinns, insbesondere die Festsetzung der Dividende; |
3. to approve the statutorily required management report, the annual accounts and the consolidated financial statements as well as to pass resolutions regarding the allocation of profits as shown on the balance sheet, in particular to determine the dividends; |
|
4. die Entlastung der Mitglieder des Verwaltungsrats; |
4. to grant discharge to the members of the Board of Directors; |
|
5. die Genehmigung der Vergütungen des Verwaltungsrats und der Geschäftsleitung gemäss Art. 25 der Statuten; und |
5. to approve the compensation of the Board of Directors and the Executive Management in accordance with Article 25; and |
|
6. die Beschlussfassung über die Gegenstände, die der Generalversammlung durch das Gesetz oder die Statuten vorbehalten sind oder welche ihr vom Verwaltungsrat vorgelegt werden. |
6. to pass resolutions regarding items which are reserved to the General Meeting by law or by the Articles of Association or which are presented to it by the Board of Directors. |
|
Artikel 10 Generalversammlungen sowie deren Einberufung
a) Die ordentliche Generalversammlung findet alljährlich innerhalb von |
Article 10 Meetings and Convening the Meeting
a) The ordinary General Meeting shall be held annually within |
8
9
10
11
12
d) Der Verwaltungsrat hat das Recht die Bestimmungen des Artikels 14 der Statuten auszulegen und die Berechtigung von natürlichen und juristischen Personen an Aktien der Gesellschaft zur Sicherstellung der Umsetzung dieser Bestimmungen festzulegen. Bei der Auslegung kann der Verwaltungsrat Gesetze, Reglemente und übrige Bestimmungen sowie Rechtsprechung aus dem In- und Ausland beiziehen, welche Art. 14 der Statuten ähnlich sind. |
d) The Board of Directors shall have the authority to interpret the provisions of this Article 14 and to determine the ownership of shares by any individual or entity so as to fully implement the provisions of this Article 14. In so interpreting this Article 14, the Board of Directors may look to laws, rules, regulations and court decisions (including of countries outside of Switzerland) having language substantially similar to this Article 14. |
|
e) Der Verwaltungsrat kann in besonderen Fällen Ausnahmen von den vorerwähnten Stimmrechtsbeschränkungen gewähren. |
e) The Board of Directors may in special cases allow exceptions from this limitation on voting rights. |
|
Artikel 15 Unabhängiger Stimmrechtsvertreter und weitere Vertretungsregeln
a) Die Generalversammlung wählt einen unabhängigen Stimmrechtsvertreter. Die Amtszeit endet jeweils mit Abschluss der nächsten ordentlichen Generalversammlung. Wiederwahl ist möglich. |
Article 15 Independent Proxy and Additional Rules on Proxies
a) The General Meeting shall elect an Independent Proxy. The term of office ends in each case at the end of the next ordinary General Meeting. Re-election is permitted. |
|
b) Jeder stimmberechtigte Aktionär kann seine Aktien durch den von ihm schriftlich oder elektronisch bevollmächtigten unabhängigen Stimmrechtsvertreter oder durch eine andere Person in Übereinstimmung mit Art. 14 lit. a) vertreten lassen. Die Mitglieder des Verwaltungsrates und der Geschäftsleitung dürfen Aktionäre vertreten, sofern es sich nicht um eine institutionalisierte Vertretung handelt. Verwahrungsstellen dürfen Aktionäre vertreten und gelten nicht als Depotvertreter (im Sinne von Art. 689d OR), sofern sie aufgrund einer schriftlichen Vollmacht und nach Massgabe von konkreten oder allgemeinen Weisungen des betreffenden Aktionärs handeln. |
b) Each shareholder may be represented at the General Meeting by the Independent Proxy by way of a written or electronic proxy or by another person in accordance with Article 14(a). The members of the Board of Directors and the Executive Management are allowed to represent shareholders provided that this does not constitute an institutionalized representation of shareholders. Custodians may represent shareholders and shall not be deemed depositary representatives (in the sense of Art. 689d of the Swiss Code of Obligations), provided that they act based on a written proxy and in accordance with specific or general instructions of the relevant shareholder. |
|
c) Der unabhängige Stimmrechtsvertreter ist verpflichtet, die von ihm vertretenen Stimmrechte weisungsgemäss auszuüben. Hat er keine Weisungen erhalten, so enthält er sich der Stimme. Eine allgemeine oder konkludente Weisung, bei in der Einberufung bekanntgegebenen und/oder |
c) The Independent Proxy is obliged to exercise the represented voting rights in accordance with instructions. If no instructions were obtained, it shall abstain from voting. A general or implied instruction to vote according to the proposal of |
13
14
einfachen Mehrheit der abgegebenen Stimmen (wobei Enthaltungen, sog. Broker Nonvotes, leere oder ungültige Stimmen für die Bestimmung des Mehr nicht berücksichtigt werden). |
out its elections with the simple majority of the votes cast (whereby abstentions, broker non-votes, blank or invalid ballots shall be disregarded for purposes of establishing the majority). |
|
c) Der Vorsitzende bestimmt das Abstimmungsverfahren. Erfolgen die Wahlen nicht elektronisch haben sie mittels Stimmzettel zu erfolgen, wenn mindestens 50 anwesende Aktionäre dies per Handzeichen verlangen. Die Weisungserteilung via Internet oder Telefon kann durch den Vorsitzenden gestattet werden. |
c) The Chairman of the General Meeting shall determine the voting procedure. Provided that the voting is not done electronically, voting shall be by ballot if more than 50 of the shareholders present so demand by a show of hands. The accord of instructions by using the internet or the telephone can be permitted by the Chairman. |
|
Artikel 17 Quorum
Ein Beschluss der Generalversammlung, der mindestens zwei Drittel der vertretenen Stimmen und die absolute Mehrheit der vertretenen Aktiennennwerte auf sich vereinigt, ist erforderlich für: |
Article 17 Quorums
A resolution of the General Meeting passed by at least two thirds of the represented share votes and the absolute majority of the represented shares par value is required for: |
|
1. die in Art. 704 Abs. 1 OR aufgeführten Geschäfte, d.h. für: |
1. the cases listed in art. 704 para. 1 CO, i.e.: |
|
(a) die Änderung des Gesellschaftszwecks; |
(a) the change of the company purpose; |
|
(b) die Einführung von Stimmrechtsaktien; |
(b) the creation of shares with privileged voting rights; |
|
(c) die Beschränkung der Übertragbarkeit von Namenaktien; |
(c) the restriction of the transferability of registered shares; |
|
(d) eine genehmigte oder bedingte Kapitalerhöhung; |
(d) an increase of capital, authorized or subject to a condition; |
|
(e) die Kapitalerhöhung aus Eigenkapital, gegen Sacheinlage oder zwecks Sachübernahme und die Gewährung von besonderen Vorteilen; |
(e) an increase of capital out of equity, against contribution in kind, or for the purpose of acquisition of assets and the granting of special benefits; |
|
(f) die Einschränkung oder Aufhebung des Bezugsrechts; |
(f) the limitation or withdrawal of pre-emptive rights; |
15
16
c) Der Verwaltungsrat konstituiert sich selber, sofern das Gesetz oder die Statuten nichts anderes bestimmen. Er bezeichnet einen Sekretär; dieser braucht nicht dem Verwaltungsrat anzugehören. |
c) The Board of Directors shall constitute itself unless provided otherwise by law or the Articles of Association. It appoints a Secretary who does not need to be a member of the Board of Directors. |
|
d) Fällt der Präsident aus oder hat die Gesellschaft aus anderen Gründen keinen handlungs- und funktionsfähigen Präsidenten, so ernennt der Verwaltungsrat eines seiner Mitglieder zum Präsidenten bis zur nächsten ordentlichen Generalversammlung; die Einberufung einer Generalversammlung nach Art. 726 Abs. 2 OR bleibt vorbehalten. |
d) If the Chairman is not available to continue to hold office or if the Company does not have a Chairman capable of acting and of holding office for other reasons, then the Board of Directors shall appoint one of its members as Chairman until the next ordinary General Meeting; the calling of a General Meeting in accordance with Art. 726 para. 2 CO is reserved. |
|
Artikel 19 Zuständigkeit und Delegation
a) Der Verwaltungsrat hat die Oberleitung der Gesellschaft sowie die Aufsicht über die Geschäftsleitung. Er vertritt die Gesellschaft gegenüber Dritten und kann in allen Angelegenheiten Beschluss fassen, welche nicht gemäss Gesetz, Statuten oder Organisationsreglement einem anderen Organ zugewiesen sind. |
Article 19 Ultimate Direction, Delegation
a) The Board of Directors is entrusted with the ultimate direction of the Company as well as the supervision of the management. It represents the Company towards third parties and attends to all matters which are not delegated to or reserved for another corporate body of the Company by law, the Articles of Association or the regulations. |
|
b) Der Verwaltungsrat kann aus seiner Mitte Ausschüssen bestellen oder einzelne Mitglieder bestimmen, welche mit der Vorbereitung und/oder Ausführung seiner Beschlüsse oder der Überwachung bestimmter Geschäfte betraut sind. Der Verwaltungsrat erlässt hierzu die notwendigen organisatorischen Weisungen. Mit Ausnahme der unübertragbaren Befugnisse kann der Verwaltungsrat die Geschäftsführung ganz oder teilweise an ein Mitglied oder mehrere Mitglieder des Verwaltungsrats oder an andere natürliche Personen, welche keine Aktionäre zu sein brauchen, übertragen. Der Verwaltungsrat erlässt hierzu die notwendigen Organisationsreglemente und erstellt die erforderlichen Vertragsdokumente. |
b) The Board of Directors may delegate preparation and/or implementation of its decisions and supervision of the business to committees or to individual members of the Board of Directors. The organizational regulations will be defined by the Board of Directors. While reserving its non-transferable powers, the Board of Directors may further delegate the management of the business or parts thereof to one or more members of the Board of Directors or other natural persons who need not be shareholders. The Board of Directors shall record all such arrangements in a set of regulations for the Company and set up the necessary contractual framework. |
17
Artikel 20 Einzelne Befugnisse
Der Verwaltungsrat hat folgende unübertragbare und unentziehbare Befugnisse:
|
Article 20 Duties
The Board of Directors has the following non-transferable and inalienable duties:
|
|
1. die Oberleitung der Gesellschaft und die Erteilung der nötigen Weisungen;
|
1. to ultimately oversee the Company and issue the necessary directives;
|
|
2. die Festlegung der Organisation;
|
2. to determine the organization;
|
|
3. die Ausgestaltung des Rechnungswesens, der Finanzkontrolle sowie der Finanzplanung, sofern diese für die Führung der Gesellschaft notwendig ist;
|
3. to organize the accounting, the financial control, as well as the financial planning;
|
|
4. die Ernennung und Abberufung der mit der Geschäftsführung und der Vertretung betrauten Personen, sowie die Erteilung der Zeichnungsberechtigungen;
|
4. to appoint and remove the persons entrusted with the management and representation of the Company and to grant signatory power;
|
|
5. die Oberaufsicht über die mit der Geschäftsführung und der Vertretung betrauten Personen, namentlich im Hinblick auf die Befolgung der Gesetze, Statuten, Reglemente und Weisungen;
|
5. to ultimately supervise the persons entrusted with the management, in particular with respect to compliance with the law and with the Articles of Association, regulations and directives;
|
|
6. die Erstellung des Geschäftsberichtes, des Vergütungsberichtes sowie die Vorbereitung der Generalversammlung und die Ausführung ihrer Beschlüsse;
|
6. to prepare the business report, the compensation report as well as the General Meeting and to implement the latters resolutions;
|
|
7. die Benachrichtigung des Richters im Falle der Überschuldung;
|
7. to inform the judge in the event of overindebtedness;
|
|
8. die Beschlussfassung über die nachträgliche Liberierung von nicht vollständig liberierten Aktien;
|
8. to pass resolutions regarding the subsequent payment of capital with respect to non-fully paid-in shares;
|
|
9. die Beschlussfassung über die Feststellung von Kapitalerhöhungen und die entsprechenden Statutenänderungen; |
9. to pass resolutions confirming increases in share capital and regarding the amendments to the Articles of Association entailed thereby; |
18
19
20
21
22
23
24
c) Der Bonus in bar wird unter Anwendung der obengenannten Kriterien und Rahmenbedingungen basierend auf Leistungen ausbezahlt, die grundsätzlich unter Zugrundelegung des einjährigen Zeitraums gemessen werden, auf den sich der Bonus in bar bezieht.
|
c) The cash bonus is paid out based on achievements which are generally measured based on the one-year period to which the cash bonus relates, applying the above criteria and framework. |
|
d) Der Umfang der Zuteilungen von Beteiligungsrechten (aktienbasierten Awards) mit langfristiger Anreizwirkung (long-term incentive) wird durch den Verwaltungsrat oder den Vergütungsausschuss festgelegt. Er kann aus Aktienoptionen, Aktien mit Veräusserungssperre, Performance-Aktien und sonstigen Beteiligungsinstrumenten bestehen, die gemäss einem Beteiligungsplan zulässig sind, welcher von der Generalversammlung mittels konsultativem oder bindendem Beschluss, wie vom anwendbaren Recht (inklusive den US-Wertschriftengesetzen) verlangt, genehmigt wurde.
|
d) The amount of long-term incentive equity awards granted shall be determined by the Board of Directors or the Compensation Committee and may consist of stock options, restricted stock, performance shares or any other equity instruments permitted by an equity plan that has been approved by the General Meeting by a binding or advisory vote as required by applicable law (including U.S. securities laws). |
|
e) Zuteilungen von Beteiligungsrechten (aktienbasierte Awards) stellen grundsätzlich Vergütungen im Jahr dar, in der gegebenenfalls die Performance zum Zwecke der Festlegung des Umfangs der Zuteilung gemessen wurde (d.h. wenn eine Zuteilung im Zusammenhang mit der Beurteilung der Performance im Vorjahr erfolgt, stellt diese Zuteilung Vergütung in Bezug auf dieses Vorjahr dar), oder andernfalls Vergütungen am Tag der Zuteilung dar. Sie sind grundsätzlich zu ihrem Fair Value am Zuteilungsdatum zu bewerten, wie vom Verwaltungsrat oder Vergütungsausschuss festgelegt. Wenn der Verwaltungsrat oder der Vergütungsausschuss es unter den gegebenen Umständen als angemessen erachtet, kann er bestimmen, dass eine Zuteilung oder ein Teil einer Zuteilung eine Vergütung in einem anderen Jahr darstellt und an einem anderen Datum bewertet wird (soweit dies nach anwendbarem Recht, inklusive den US-Wertschriftengesetzen, zulässig ist).
|
e) Any equity awards generally constitute compensation for the year during which performance was measured in order to determine the size of the award, if applicable (i.e., if an award is granted in connection with review of prior-year performance, then such award shall constitute compensation with respect to such prior year), and otherwise at the date of grant. They shall be generally valued at their fair value at the date of grant as determined by the Board of Directors or the Compensation Committee. If the Board of Directors or the Compensation Committee deems it reasonable under the circumstances, it may determine that all or part of an award shall constitute variable compensation in a different year and be valued at a different date (to extent permitted by applicable law, including U.S. securities laws). |
|
f) Der Verwaltungsrat oder der Vergütungsausschuss ist autorisiert, die näheren Vorschriften und Bedingungen von variablen Vergütungen zu spezifizieren, sei dies in Bonus- und Beteiligungsplänen, Arbeits- oder Zuteilungsverträgen oder anderweitig. Sie bestimmen die Bedingungen |
f) The Board of Directors or the Compensation Committee is authorized to specify any further terms and conditions of variable compensation, be it in bonus and equity incentive plans, employment or award agreements or otherwise. They |
25
26
27
28
d) Ein Mandat im Sinne dieses Artikels ist ein Mandat in den obersten Leitungs- oder Verwaltungsorganen von Rechtseinheiten, die verpflichtet sind, sich ins Handelsregister oder in ein entsprechendes ausländisches Register eintragen zu lassen, mit Ausnahme der Gesellschaft und Rechtseinheiten, die durch die Gesellschaft kontrolliert werden oder diese kontrollieren. |
d) A mandate within the meaning of this Article shall mean a mandate in superior governing or administrative bodies of legal entities that are obliged to register themselves in the commercial registry or any comparable foreign register except for the Company and any entity controlled by, or controlling, the Company. |
|
Artikel 27 Vereinbarungen mit der Geschäftsleitung und dem Verwaltungsrat |
Article 27 Agreements with Executive Management and the Board of Directors |
|
a) Arbeits- und Dienstleistungsverträge mit Mitgliedern der Geschäftsleitung und, falls anwendbar, mit Mitgliedern des Verwaltungsrates sind in der Regel unbefristet und können eine Kündigungsfrist von bis zu 12 Monaten vorsehen. Falls der Verwaltungsrat oder einer seiner Ausschüsse zum Schluss gelangt, dass eine befristete Vertragsdauer angemessen ist, so übersteigt diese nicht 12 Monate.
b) Die Gesellschaft kann mit Mitgliedern der Geschäftsleitung entschädigte Konkurrenzverbote für eine Dauer von bis zu 2 Jahren nach der Beendigung des Arbeitsverhältnisses vereinbaren. Die Entschädigung, die pro Jahr des Konkurrenzverbots zu entrichten ist, beträgt maximal die Summe (i) der letzten jährlichen Grundvergütung des Mitglieds, (ii) des Durchschnitts der letzten drei tatsächlichen Jahresboni des Mitglieds, und (iii) der Prämienzahlungen für Kranken- und/oder Zahnversicherung basierend auf der Wahl des Mitglieds zur Zeit der Beendigung des Arbeitsverhältnisses. Zudem kann die Gesellschaft die Ausrichtung bestimmter Vergütungselemente, die mit in der Vergangenheit erbrachten Leistungen eines Mitglieds im Zusammenhang stehen, vom Abschluss und der Einhaltung eines Konkurrenzverbots abhängig machen, so insbesondere (i) die Ausrichtung eines pro rata Bonusbetrags für das Jahr, in welchem das Arbeitsverhältnis mit dem Mitglied beendet wurde, |
a) Any employment or service agreements of the members of the Executive Management and, if applicable, with members of the Board of Directors are as a general rule without fixed term and may provide for notice periods of up to 12 months. If the Board of Directors or any of its Committees comes to the conclusion that a fixed term is appropriate, the fixed term shall not exceed 12 months.
b) The Company may enter into compensated non-competition agreements with members of the Executive Management with a duration of up to 2 years after termination of the employment. The compensation payable for each year of the non-compete obligation shall not exceed the sum of (i) the last annual base salary of the member, (ii) the average of the members last three actual annual bonuses, and (iii) health and/or dental premium payments based upon the members elections in effect as of the termination. Furthermore, the Company may condition the payment of certain compensation items related to a members past services on the entering into and compliance with a non-competition agreement, including without limitation the payment of (i) a pro rata bonus amount for the year in which the member is terminated |
29
30
Geschäftsleitung an den von der Gesellschaft unterhaltenen Krankenversicherungsprogrammen teilnehmen. |
retirement age is possible. In addition, the members of the Executive Management may participate in the health plans maintained by the Company.
|
|
Artikel 29 Rechtsnatur
Die Bestimmungen dieses Abschnitts sind gesellschaftsrechtlicher Natur und begründen keine individuellen Leistungsansprüche.
|
Article 29 Legal Nature
The provisions of this section are of a company-law nature and do not create individual claims for benefits. |
|
V. Liquidation
|
V. Liquidation | |
Artikel 30 Auflösung und Liquidation
a) Die Generalversammlung kann jederzeit in Übereinstimmung mit den gesetzlichen und statutarischen Bestimmungen die Auflösung und die Liquidation der Gesellschaft beschliessen.
|
Article 30 Dissolution and Liquidation
a) The General Meeting may at any time resolve the dissolution and liquidation of the Company in accordance with the provisions of the law and of the Articles of Association.
|
|
b) Die Liquidation wird durch den Verwaltungsrat besorgt, sofern sie nicht durch einen Beschluss der Generalversammlung anderen Personen übertragen wird.
|
b) The liquidation shall be carried out by the Board of Directors to the extent that the General Meeting has not entrusted the same to other persons.
|
|
c) Die Liquidation ist gemäss Art. 742 ff. OR durchzuführen. Dabei können die Liquidatoren über das Vermögen der Gesellschaft (einschliesslich Immobilien) durch privaten Rechtsakt verfügen.
|
c) The liquidation of the Company shall take place in accordance with art. 742 et seq. of the Swiss Code of Obligations. The liquidators are authorized to dispose of the assets (including real estate) by way of private contract.
|
|
d) Das Vermögen der aufgelösten Gesellschaft wird nach Tilgung ihrer Schulden unter die Aktionäre nach Massgabe der einbezahlten Beträge verteilt. |
d) After all debts have been satisfied, the net proceeds shall be distributed among the shareholders in proportion to the amounts paid-in. |
31
32
Exhibit 3.2
Organizational Regulations
of
ACE Limited
with registered office in Zurich, Switzerland
Contents
2
3
1. |
BASICS AND SCOPE OF APPLICATION |
1.1 |
Basics |
The board of directors of ACE Limited, Switzerland, ( Company ) issues the following organizational regulations ( Organizational Regulations ) based on art. 716b CO and art.19 of the articles of association of ACE Limited ( Articles of Association ).
1.2 |
Scope of Application |
The Organizational Regulations define the organization and responsibilities of the executive bodies, i.e. the board of directors and its members ( Board Members ), its committees and its chairs, the delegate of the board of directors and the chief executive officer as well as the executive management of the Company and its subsidiaries (together with the Company the Group ). They implement and supplement applicable law and the Articles of Association by establishing binding rules regarding the organization of the Group and its overall management.
1.3 |
Executive Bodies of the Company |
The |
executive bodies of the Company are: |
(a) |
the board of directors of the Company ( Board of Directors ); |
(b) |
the chairman of the Board of Directors ( Chairman ); |
(c) |
the committees of the Board of Directors ( Committees ); |
(d) |
the delegate of the Board of Directors ( Delegate ) and the chief executive officer of the Company ( Chief Executive Officer ); and |
(e) |
the executive management ( Executive Management ). |
2. |
BOARD OF DIRECTORS |
2.1 |
Statutory Powers and Responsibilities |
2.1.1 |
The Board of Directors is entrusted with the ultimate management of the Company, the overall supervision of the Group as well as with the supervision and control of management. |
The Board of Directors is entitled to pass resolutions on all matters which are not delegated to, or reserved for, the shareholders meeting or another body of the Company by applicable law, the Articles of Association or the Organizational Regulations.
4
2.1.2 |
The Board of Directors has the following (non-transferable) duties and competences with regard to the Company and the Group: |
(a) |
to ultimately manage and direct the Company and the Group and to issue the necessary directives; |
(b) |
to determine the overall organization and strategy; |
(c) |
to organize the finances, in particular determine the applicable accounting principles, the structuring of the accounting system, of the financial controls and of the internal audit as well as the financial planning; |
(d) |
appointment and removal of a Delegate and his/her deputy; |
(e) |
appointment and removal of the members of the Executive Management and of the internal audit, and to grant signatory power; |
(f) |
to verify the professional qualifications of the specially qualified independent auditors of the Company; |
(g) |
to ultimately supervise the persons entrusted with the management, in particular with respect to compliance with the law, the Articles of Association, the Organizational Regulations and other regulations and directives; |
(h) |
preparation of the business report (including the financial statements), the compensation report, as well as the preparation of the shareholders meetings and the implementing of their resolutions; |
(i) |
to pass resolutions regarding increases in share capital, as far as they are within the competence of the Board of Directors (art. 651 para. 4 CO) as well as the adoption of capital increases and the amendments to the Articles of Association entailed therewith; |
(j) |
to propose reorganization measures to the shareholders meeting if half the share capital is no longer covered by the Companys net assets; |
(k) |
notification of the judge (filing for bankruptcy) in the case of over-indebtedness; |
(l) |
to decide on agreements relating to mergers, spin-offs, conversions and/or transfer of assets ( Vermögensübertragung ) pursuant to the Swiss Merger Act ( Fusionsgesetz ). |
5
2.2 |
Further Powers and Responsibilities |
The Board of Directors has the following further powers and responsibilities with regard to the Company and the Group:
2.2.1 |
Regarding the Board of Directors: |
(a) |
appointment and removal of the Lead Director, the Delegate and the Secretary, who need not be a member of the Board of Directors; |
(b) |
appointment and removal, upon recommendation by the nominating & governance committee ( Nominating & Governance Committee ), of the members of the Committees of the Board of Directors, except for the members of the Compensation Committee; |
(c) |
to the extent allowed by applicable law and the Articles of Association, appointment to and suspension from office of the Chairman and the Compensation Committee; |
(d) |
subject to the powers of the shareholders meeting pursuant to the Articles of Association, determine the compensation of (1) the Board Members, upon recommendation by the Nominating & Governance Committee and (ii) the Chairman, the Delegate and the Executive Management, upon recommendation of the compensation committee of the Board of Directors (the Compensation Committee ); |
(e) |
consider the reports and recommendations submitted to it by the committees of the Board of Directors ( Committees ) and resolve on the proposals of the Committees; |
(f) |
propose to the shareholders meeting, upon recommendation by the Nominating & Governance Committee candidates for election or re-election to the Board of Directors; |
(g) |
propose to the shareholders meeting, upon recommendation by the Nominating & Governance Committee a candidate for election or re-election as Chairman; |
(h) |
propose to the shareholders meeting, upon recommendation by the Nominating & Governance candidates for election or re-election to the Compensation Committee; and |
(i) |
yearly review of the performance of the Board of Directors, the Committees and the Board Members. |
6
2.2.2 |
Regarding operational matters: |
(a) |
have overall responsibility for corporate governance matters and the authority to delegate responsibilities to its Committees and the Executive Management, as it deems appropriate; |
(b) |
appoint and remove the members of the Executive Management; |
(c) |
determine the strategy of the Group and review the strategy of the Executive Management; |
(d) |
determine and amend the structure of the Group and designate the business segments; |
(e) |
approval of the medium and short term business plan of the Group, on the basis of the strategic goals; |
(f) |
determine the risk tolerance level and monitor the risk development, in conjunction with the risk & finance committee of the Board of Directors ( Risk & Finance Committee ); |
(g) |
resolve on material acquisitions, dispositions, investments, strategic and financing transactions; |
(h) |
be informed of provisions, write-offs and depreciations outside the ordinary course of business; |
(i) |
approve capital market transactions for the account of the Group, including buy-backs of Company shares; |
(j) |
delegate management powers and responsibilities to Committees, Board Members and the Executive Management; |
(k) |
approve an upper limit for aggregate debt issuances, credit facilities or similar instruments (including repurchase facilities and letter of credit facilities); |
(l) |
approve year-end reports of the Company and the Group, subject to the authority of the shareholders meeting; |
(m) |
review and consider periodic core business status reports as well as reports on major business transactions and events; |
(n) |
review the Groups adherence to legal, regulatory and compliance standards and the status of significant legal, regulatory or compliance matters, in conjunction with the Audit Committee; |
7
(o) |
assess, on an annual basis, the performance of the Chief Executive Officer and the members of the Executive Management; and |
(p) |
approve the compensation principles of the Group upon recommendation of the Compensation Committee. |
2.3 |
Delegation of Management to Chief Executive Officer and Executive Management |
The Board of Directors delegates the management of the Company and the Group to the Chief Executive Officer and the other members of the Executive Management as provided for by these Organizational Regulations.
Board Members will have complete and open access to the Chief Executive Officer, chief financial officer, general counsel, chief compliance officer and the head of internal audit.
2.4 |
Constitution |
The Board of Directors shall elect a Lead Director (who also acts as vice-chairman) from amongst its members.
The Board of Directors shall appoint a Secretary (a person keeping the minutes and assisting in the preparation of board meetings) who need not to be a member of the Board of Directors.
2.5 |
Meetings, Convocation of Meetings, Agenda |
2.5.1 |
The Board of Directors shall be convened whenever required by business, a minimum of four times a year. |
2.5.2 |
Meetings shall be convened by the Chairman or, in his/her absence, by another Board Member. Each Board Member shall be entitled to request an immediate convening of a meeting and shall, in this event, set forth the items to be discussed. |
2.5.3 |
Meetings shall be announced at least 10 (ten) calendar days in advance by letter, facsimile or e-mail. Items on the agenda shall be set forth in this correspondence. |
In case of urgency shorter notice periods are permitted. If all Board Members are present and agree, deviations from these formal requirements are permitted; in particular, decisions can be taken that are not mentioned on the agenda.
Furthermore, these formal requirements do not have to be observed, if a meeting is only convened in order to record the implementation of a capital increase, to pass resolutions regarding the amendments of the Articles of Association entailed therewith and to adopt the report on the capital increase.
8
2.5.4 |
The Chairman, or in his/her absence, a vice-chairman or, in their absence, another Board Member, shall chair the meetings. |
2.5.5 |
At board meetings, each Board Member shall be entitled to submit proposals regarding the items on the agenda. This right may also be executed by way of correspondence. |
2.6 |
Quorum, Passing of Resolutions and Minutes |
2.6.1 |
A board quorum shall be constituted when a majority of the Board Members are present in person or participate using some alternative means of instant communication. |
A quorum of Board Members shall not be required in order to record the implementation of a capital increase, to pass resolutions regarding the amendments of the Articles of Association entailed therewith and to adopt the report on the capital increase.
2.6.2 |
The Board of Directors shall pass its resolutions with the majority of the votes cast. In case of a tie of votes, the Chairman shall not have the casting vote. Board Members may not be represented. |
2.6.3 |
Board resolutions may also be passed by means of written resolutions (circular resolutions), in writing, by facsimile or by a signed copy sent by e-mail, provided that no Board Member requests, either by phone, facsimile or similar means, deliberation in a meeting, within 5 (five) calendar days after hearing of the proposed resolution. Board resolutions by means of written resolutions require the affirmative vote of a majority of all of the Board Members. |
2.6.4 |
Board meetings may be held and resolutions may be passed by means of a telephone or video conference or similar means of instant communication provided that (i) all Board Members can be reached by such means and (ii) no Board Member, when contacted for such conference, requests deliberation in a meeting. |
2.6.5 |
All resolutions shall be recorded. The minutes shall be signed by the Chairman and the person keeping the minutes and must be approved by the Board of Directors. |
2.7 |
Right to Request Information and Reporting |
2.7.1 |
Each Board Member is entitled to request information from the Chairman on all Company and Group matters. |
2.7.2 |
At every meeting the Delegate shall inform the Board of Directors on the current course of business and on important business developments of the Company and the Group. The Board of Directors shall be informed promptly of any extraordinary business development. If necessary, members of the Executive Management may be invited to attend board meetings. Board Members shall be informed of extraordinary occurrences immediately by way of circulating letter, or, if necessary, also by telephone, facsimile or e-mail. |
9
2.7.3 |
Each Board Member is also entitled to request information or access to business documents in the intervals between board meetings. Such requests shall be addressed in writing to the Chairman of the Board of Directors. |
2.7.4 |
To the extent necessary to fulfill his/her duties, each Board Member may request from the Chairman authorization to review books and records of the Company. If the Chairman rejects the Board Members request for information, for a hearing or for an inspection, then the Board of Directors shall decide on such request. |
2.8 |
Composition and Independence |
The Board of Directors, upon recommendation by the Nominating & Governance Committee, shall submit nominations of new Board Members for election at the shareholders meeting that ensure an adequate size and well-balanced composition of the Board of Directors and further ensure that a majority of the Board Members are independent within applicable legal and stock exchange requirements.
3. |
THE CHAIRMAN |
3.1 |
Powers and Responsibilities |
3.1.1 |
The Chairman shall convene board meetings and take the chair. Together with the person keeping the minutes, he/she shall sign the minutes regarding the deliberations and resolutions of the Board of Directors. |
The Chairman shall preside over the shareholders meeting. Together with the person keeping the minutes, he/she shall sign the minutes of the shareholders meeting.
The Chairman has the right to call in third parties as advisors in meetings of the Board of Directors.
3.1.2 |
In addition, the Chairman shall have the responsibilities delegated to him/her by law, the Articles of Association and the Organizational Regulations. |
3.2 |
Substitution |
If the Chairman of the Board of Directors is prevented from performing his/her duties, they shall be performed by the Lead Director.
10
4. |
LEAD DIRECTOR |
The Board of Directors shall appoint a Lead Director, who shall have the following responsibilities, together with such others as the Board of Directors might from time to time specify:
(a) |
to participate with the Chairman and the Delegate in establishing the agenda for board meetings, and to circulate to the other Board Members the proposed agenda so as to receive and incorporate their suggestions as to additional agenda items; |
(b) |
to preside at executive sessions of the non-management and the independent Board Members; |
(c) |
to work with the Nominating and Governance Committee in the Board of Directors performance evaluation process; |
(d) |
to facilitate communication between Board Members and, respectively, the Chairman, the Delegate and the Chief Executive Officer without in any way becoming the exclusive means of such communication; |
(e) |
to help assure that all Board Members receive on a timely basis the reports, background materials and resources necessary or desirable to assist them in carrying out their responsibilities; |
(f) |
to monitor the Companys mechanism for receiving and responding to communications to the Board of Directors from shareholders; |
(g) |
to respond to shareholder inquiries regarding matters other than audit-related matters; and |
(h) |
to monitor the Board of Directors activities to ensure sound corporate governance. |
5. |
COMMITTEES |
5.1 |
Purpose, Powers and Responsibilities in General |
5.1.1 |
The Board of Directors may allocate the preparation and implementation of its resolutions and the supervision of the business of the Company and the Group to Committees. The Committees shall timely inform the Board of Directors on its findings and actions. |
5.1.2 |
The Committees have the right, at any time and in their discretion, to make or request inquires in all matters falling into their responsibilities. By doing so, they shall take into account the industry practice and general principles of best practice. They may, if required, hire independent legal advisors, auditors or other experts, in particular to establish a comparison with general principles of best practice. The expenses shall be borne by the Company. |
5.2 |
Types of Committees, Charters |
11
5.2.1 |
The Board of Directors shall have an Audit Committee, a Compensation Committee, an Executive Committee, a Risk & Finance Committee and a Nominating & Governance Committee. |
5.2.2 |
The Board of Directors may designate one or more additional Committees at any time. |
5.2.3 |
The Board of Directors shall issue separate charters for each Committee which set out the powers and, as the case may be, the procedures of any such Committee. These charters, as amended from time to time, are incorporated by reference into these Organizational Regulations. |
5.3 |
Composition and Eligibility |
Subject to the powers of the shareholders meeting in respect to the Compensation Committee and unless otherwise determined by a Committees charter, each Committee is constituted by a chairman and at least one further member, each appointed by the Board of Directors among its members.
5.4 |
Term |
Unless otherwise determined by a Committees charter, the term of a membership in a Committee is one year upon appointment.
5.5 |
Meetings, Convocation of Meetings, Agenda |
Unless otherwise determined by a Committees charter:
(a) |
Meetings of the Committees shall be convened whenever required by business, usually on the day before an ordinary board meeting. |
(b) |
Meetings shall be convened by the chairman of the Committee. Each member of a Committee shall be entitled to request an immediate convening of a Committee meeting and must, in this event, set forth the items to be discussed. |
(c) |
The chairs of the Committees may invite other participants than the members of the Committees and the participants provided for in the Organizational Regulations. |
(d) |
The chairs of the Committees prepare the meetings and invite the participants with advisory functions. The meetings are headed by the chair of the Committee. |
(e) |
The chair of the Committee may exclude members of the Executive Management from meetings or from parts of a meeting. |
5.6 |
Resolutions and Proposals to the Board of Directors |
12
Unless otherwise determined by a Committees charter:
(a) |
A Committee quorum shall be constituted when a majority of the members of the Committee are present in person or participate using some alternative means of instant communication. |
(b) |
The Committees shall pass their resolutions and adopt proposals to the Board of Directors with the majority of the votes cast. In case of a tie of votes, the chair shall not have the casting vote. |
(c) |
Committee resolutions and proposals to the Board of Directors may also be passed by means of written resolutions (circular resolutions), in writing, by facsimile or by a signed copy sent by e-mail, provided that no member requests, either by phone, facsimile or similar means, deliberation in a meeting, within 5 (five) calendar days after hearing of the proposed resolution or proposal. Committee resolutions and proposals by means of written resolutions require the affirmative vote of a majority of all of the Committee members. |
(d) |
All resolutions shall be recorded. The minutes shall be signed by the chair of the Committee and the person keeping the minutes and must be approved by the next meeting of the Committee. |
6. |
DELEGATE |
6.1 |
Powers and Responsibilities |
6.1.1 |
The Delegate is a member of the Board of Directors ( Verwaltungsratsdelegierter ) and the Chief Executive Officer of the Executive Management. The Chairman may also be appointed as the Delegate. |
6.1.2 |
If the Board of Directors appointed a Delegate in accordance with Clause 2.1.2(d), this Delegate shall have the following powers and responsibilities: |
(a) |
head the Executive Management and convene and chair its meetings; |
(b) |
liaise between the Board of Directors and the Executive Management in all areas that are not reserved to the Chairman; |
(c) |
chair the meetings of the Executive Management; |
(d) |
supervise and prepare the implementation of the resolutions of the Board of Directors on the ultimate management of the Company; |
(e) |
supervise the development of the strategies of the Company by the Executive Management; and |
13
(f) |
supervise the formation for the top management of the Company. |
6.2 |
Further Powers and Responsibilities |
6.2.1 |
Furthermore, the Delegate has the responsibilities as set forth in the Articles of Association and these Organizational Regulations. In particular, he or she is responsible and supervises the implementation of the resolutions by the Board of Directors. |
6.2.2 |
The Board of Directors may delegate further powers and responsibilities to the Delegate. |
7. |
EXECUTIVE MANAGEMENT |
7.1 |
Powers and Responsibilities |
7.1.1 |
The Executive Management shall manage the operations of the Company and the overall business of the Group and shall control all employees of the Company. |
7.1.2 |
In particular, the Executive Management shall exercise the following duties and competencies: |
(a) |
operational management of the Group, the implementation of the strategic business policy, the implementation of these Organizational Regulations as well as the drawing up of the necessary additional regulations and directives for approval by the Board of Directors as well as the implementation of the approved regulations and directives; |
(b) |
manage and supervise all on-going business and transactions of the Group within the framework of these Organizational Regulations save for decisions with an extraordinary importance which require prior approval by the Board of Directors; |
(c) |
preparation for approval by the Board of Directors and implementation of the accounting, financial control and the financial planning; |
(d) |
prepare and present the annual accounts, the quarterly balance sheet as well as the annual report to the Board of Directors and the subsidiary boards as well as periodical and legally required reporting to these boards regarding the course of business of the individual subsidiaries. |
7.2 |
Appointments |
7.2.1 |
The members of the Executive Management are appointed and removed by the Board of Directors. |
14
7.2.2 |
The Executive Management is constituted of the Chief Executive Officer, the chief financial officer, the general counsel and such other members as the Board of Directors may appoint from time to time. |
7.3 |
Meetings, Convocation of Meetings, Agenda |
7.3.1 |
The Executive Management shall be convened whenever required by business, a minimum of once per month. |
7.3.2 |
Meetings shall be convened by the Chief Executive Officer or, in his/her absence, by another member of the Executive Management. Each member of the Executive Management shall be entitled to request an immediate convening of a meeting and must, in this event, set forth the items to be discussed. |
7.3.3 |
Meetings shall be announced at least one calendar day in advance by letter, facsimile or e-mail. Items on the agenda shall be set forth in this correspondence. |
In case of urgency shorter notice periods are permitted. If all members of the Executive Management are present and agree, deviations from these formal requirements are permitted; in particular, decisions can be taken that are not mentioned on the agenda.
7.3.4 |
The Chief Executive Officer, or in his/her absence his/her deputy, shall chair the meetings. |
7.3.5 |
Each member shall be entitled to submit proposals regarding the items on the agenda. This right may also be executed by way of correspondence. |
7.3.6 |
The Chief Executive Officer shall decide whether individuals not belonging to the Executive Management are to participate in meetings in a consultant capacity. |
7.4 |
Quorum and Minutes |
7.4.1 |
A quorum shall be constituted when an absolute majority of the members of the Executive Management are present in person or participate using some alternative means of instant communication. |
7.4.2 |
The substance of the meeting and any decisions taken by the Executive Management shall be recorded. The minutes shall be signed by the Chief Executive Officer and the person keeping the minutes. Each member of the Executive Management shall receive a copy of the minutes. They shall be considered approved if no remarks to the contrary are made before the end of the next meeting. The minutes shall be accessible for the Board Members at any time. |
15
8. |
GROUP INTERNAL AUDIT |
8.1 |
Responsibilities |
The internal audit group of the Company ( Group Internal Audit ) shall examine and evaluate the adequacy and effectiveness of the Groups internal control environment, and the quality of performance in carrying out assigned responsibilities to achieve the Groups goals and objectives.
In fulfilling its responsibilities, Group Internal Audit shall:
(a) |
submit audit services plans to the Audit Committee for approval; |
(b) |
periodically report to the Audit Committee; |
(c) |
inform the Audit Committee about significant findings during the year; and |
(d) |
provide any additional information requested by the Audit Committee. |
8.2 |
Organization |
The organizational structure of Group Internal Audit and resource requirements necessary for Group Internal Audit to perform its activities shall be defined by the head of Group Internal Audit and submitted to the Audit Committee for approval. The head of Group Internal Audit shall review and approve all new hires and terminations of staff.
8.3 |
Professional Standards |
Group Internal Audit shall adhere to the Groups guidelines and procedures and Group Internal Audits organization and processes manuals and guidelines or to such other standards as required by applicable law or regulation.
8.4 |
Independence |
8.4.1 |
Group Internal Audit performs its internal audit activities with independence and objectivity. It shall have no direct operational responsibility or authority over any of the activities they review. |
8.4.2 |
Group Internal Audit shall coordinate its activities with other assurance functions in the Group and the external auditor. |
9. |
GENERAL PROVISIONS |
9.1 |
Signatory Powers |
9.1.1 |
Signatory powers for the Company may be sole ( Einzelunterschrift ). |
9.2 |
Conflict of Interest |
16
9.2.1 |
Members of the Board of Directors and of the Executive Management shall avoid any action, position or interest that conflict with the interests of the Company or the Group or give the appearance of a conflict of interest within the Companys code of conduct or under applicable law. |
9.2.2 |
When a conflict of interest is believed to exist, the relevant member of the Board of Directors and of the Executive Management is obliged to refrain from all discussions of, and abstain from voting upon, all matters touching his/her personal interests or the interests of any individual or legal person, or partnership with whom he/she is closely associated and to inform the Chairman accordingly. |
9.3 |
Non-Disclosure |
The Board Members as well as all other executive bodies and employees are obliged to maintain secrecy towards third parties regarding all facts they obtain knowledge of during the performance of their duties. These duties of non-disclosure survive the termination of the relationship of the respective individual with the Company.
9.4 |
Returning of Files |
Upon termination of the relationship with the Company, all business files must be returned with the exception of documents used by a Board Member to follow-up his/her own actions.
10. |
BUSINESS YEAR |
The business year of the Company starts on 1 January and ends on 31 December.
11. |
FINAL PROVISIONS |
11.1 |
Entering into Force |
These Organizational Regulations shall enter into force on the date of adoption by the Board of Directors; be it in a meeting or by circular resolution.
11.2 |
Review and Amendments |
These Organizational Regulations shall be reviewed and if necessary amended on a regular basis by the Board of Directors.
12. |
INDEMNIFICATION |
The Company shall indemnify, in accordance with and to the full extent now or hereafter permitted by law, any member of the Board of Directors or officer of the Company who
17
was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (including, without limitation, an action by or in the right of the Company), by reason of his acting as a director or officer of the Company, against any liability or expense actually and reasonably incurred by such person in respect thereof. The Company shall advance the expenses of defending any such act, suit or proceeding in accordance with and to the full extent now or hereafter permitted by law. Such indemnification and advancement of expenses are not exclusive of any other right to indemnification or advancement of expenses provided by law or otherwise.
The Board of Directors may authorize the Company to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another company, partnership, joint venture, trust or other enterprise, or in a fiduciary or other capacity with respect to any employee benefit plan maintained by the Company, against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the Company would have the power to indemnify him against such liability under the provisions of this Clause 12.
18
May 21, 2015
/s/ Evan G. Greenberg |
Evan G. Greenberg Chairman
|
/s/ Joseph F. Wayland |
Joseph F. Wayland |
Secretary |
19
Exhibit 10.1
[LETTERHEAD OF ACE LIMITED]
[Executive Management]
[Executive Address]
, 2015
Dear ,
This letter confirms our agreement with you regarding your obligation to not compete with ACE Limited and its subsidiaries (the Company) following the termination of your employment as explained in more detail below.
If the Company terminates your employment, you agree for a period of two years following such termination of employment, that you shall not at any time, directly or indirectly, whether on behalf of yourself or any other person or entity, (a) engage in a Competitive Activity (as defined below), (b) solicit any client and/or customer of the Company or any affiliate with respect to a Competitive Activity or (c) solicit or employ any employee of the Company or any affiliate for the purpose of causing such employee to terminate his or her employment with the Company or such affiliate. For purposes of this letter, Competitive Activity shall mean your engagement in an activity whether as an employee, consultant, principal, member, agent, officer, director, partner or shareholder (except as a less than 1% shareholder of a publicly traded company) that is competitive with any business of the Company or any of its affiliates. In addition, you are obligated to keep confidential all Company trade secrets, proprietary and confidential information.
In exchange for the above non-compete restrictions, if the Company terminates your employment for reasons other than due to your disability or other than due to willful misconduct or gross negligence by you in the performance of your duties, within sixty days of the date of your termination, the Company agrees to pay you the following: (i) an amount equal to two times your annual salary as in effect as of the date of such termination, (ii) an amount equal to two times the average of your last 3 annual bonuses, (iii) a pro rata bonus amount for the year in which you terminate which is based on time worked during the year and the average of your last 3 annual bonuses, and (iv) an amount equal to 24 months of the Companys portion of the health and/or dental premium payments based on your elections as in effect as of the termination (collectively the Non-Competition Payment). Your right to continue medical and dental coverage under the benefit plans of the Company on and after your termination will be determined in accordance with applicable law. You shall receive separate notification of your rights to continue coverage on or after your termination.
Additionally, in exchange for the above non-compete restrictions, if the Company terminates your employment for reasons other than due to your disability or other than due to willful misconduct or gross negligence by you in the performance of your duties, with respect to any equity awards granted to you prior to the date of this letter pursuant to the ACE Limited 2004 Long-Term Incentive Plan (the Equity Awards), the Company agrees to the following: (i) any Equity Awards that are unvested shares of restricted stock or restricted stock units (excluding any premium awards as part of any performance-based stock award) held by you as of the date of termination shall continue to vest as if you remained employed for a period of two years following your date of termination, and (ii) any Equity Awards that are unvested stock options shall continue to vest and become exercisable as if you remained employed for a period of two years following your date of termination and any options held by you on the date of your termination shall remain exercisable until the earlier of the third anniversary of your date of termination or the options original expiration date.
1
Notwithstanding the foregoing terms of this paragraph, if the Company terminates your employment for reasons other than due to your disability or other than due to willful misconduct or gross negligence by you in the performance of your duties and such termination constitutes a Change in Control Date of Termination as defined in the applicable Equity Award, you shall become vested in any Equity Awards pursuant to the terms of such Equity Award.
As a condition for receiving the Non-Competition Payment and the continued vesting of the Equity Awards, you must also execute a release of claims against the Company and its affiliates and not revoke it such that the release of claims becomes effective no later than the sixty-day anniversary of your date of termination.
If you violate any provision of this letter, you shall immediately forfeit your right to the Non-Competition Payment to the extent that such payment has not yet been paid and you shall be required to repay to the Company a cash payment equal to the Non-Competition Payment to the extent that you have already received such payment. Additionally, if you violate any provision of this letter, you shall immediately forfeit your right to continued vesting of the Equity Awards (or your right to exercise any vested but unexercised stock options) to the extent that you have not yet received a distribution of vested shares or a cash payment in relation to such Equity Awards and you shall be required to repay to the Company a cash payment equal to the value received (including any gain on any exercised options equal to the amount included in your income on the date of exercise) to the extent that you have already received a distribution of vested shares or cash payment in relation to such Equity Awards.
This letter shall be governed by and construed in accordance with the laws of New York without reference to principles of conflict of laws and you and the Company agree that venue is proper in New York. Both the Company and you agree that the parties intend for the non-compete restrictions stated above to be enforced to the maximum extent permitted by law. This Agreement concerns your activities after you are no longer employed by the Company and is not an employment agreement. All amounts otherwise payable under this letter shall be subject to customary withholding and other employment taxes, and shall be subject to such other withholding as may be required in accordance with the terms of this letter. Nothing in this letter shall be deemed to waive or modify any other agreement between you and the Company.
If you have any questions about the content of this letter, please contact the undersigned at
( ) - .
Very truly yours,
[NAME]
[TITLE]
ACCEPTED:
|
DATE: |
2