Corporate Governance

Our corporate governance is characterised by a clear culture of values and consistent compliance with legal regulations and internal guidelines. The basis for this is formed by the Group-wide standards of conduct, which we set out in our Code of Conduct, which is publicly available here. They provide binding orientation for all employees, managers and executive bodies.

Management Board

Within the framework of the statutory provisions, the Management Board is bound to the Company interests as well as to the business policy principles of ATOSS Software SE and the principles of proper corporate management. The purpose of his corporate governance is to sustainably increase the value of the Company. In addition to long-term economic goals, the Executive Board also takes into account ecological and social goals. In coordination with the Supervisory Board, it develops the ATOSS Software SE’s strategic direction and is responsible for its implementation. It is also responsible for keeping and developing appropriate planning, control and risk management systems.

The areas of responsibility of the individual members of the Management Board are defined in such a way that all major functions, products and markets are represented in the Management Board. Decisions of major importance are made in the entire Management Board on the basis of systematic and results-oriented preparations, an appropriate analysis of the expected effects on success and risks, and open-ended discussions.

In performing their management duties, the Management Board’s members may not pursue any personal interests which conflict with or impair ATOSS Software SE’s interests, nor may they accept benefits or other advantages of this kind. Neither directly nor indirectly, they may take advantage of business opportunities to which ATOSS Software SE is entitled, for themselves or for persons or companies closely associated with them. The Management Board’s members are also subject to a comprehensive non-competition clause as well as to the statutory insider rules. They are supported by a compliance officer who advises them on insider issues, monitors compliance with insider guidelines and is responsible for the relevant contacts with the competent authorities. These aforementioned principles also apply to executive members. Material transactions require the approval of the Supervisory Board.

Supervisory Board

The core task of the Supervisory Board consists of the personnel appointment and regular advice to the Management Board, as well as the monitoring of the company management and the achievement of long-term corporate goals. Monitoring and advisory services also include sustainability issues in particular.

In order to fulfil its monitoring function, ATOSS Software SE’s Supervisory Board has adopted rules of procedure. Certain transactions are subject to the approval of the Management Board within the framework of its rules of procedure, in particular strategic realignments, investment projects, loans, company formations and participations as well as other transactions above a certain size. The attendance of Supervisory Board members and Audit Committee members at meetings of the relevant body is reported in the Report of the Supervisory Board.

When selecting candidates to be proposed to the Annual General Meeting for election in the Supervisory Board, the Supervisory Board makes sure that they are persons who have the required expertise, skills and professional experience. In particular, ATOSS Software SE will comply with the recommendation of the Corporate Governance Code for future elections to the Supervisory Board or with a court appointment to propose at least one independent member with sufficient expertise in the field of auditing/accounting or with comparable expertise.

At least one member of the Supervisory Board and the Audit Committee must have expertise in the field of accounting and at least one other member of the Supervisory Board and the Audit Committee must have expertise in the field of auditing. Furthermore, in accordance with the recommendation of the Corporate Governance Code, ATOSS Software SE will ensure that in future elections to the Supervisory Board or a court appointment that the position of Chairman of the Audit Committee is filled by at least one independent member with special knowledge and experience in the application of accounting principles and internal control and risk management systems or in the auditing of financial statements.

All the Supervisory Board’s members undertake not to exercise a mandate with a competitor and not to accept benefits or other advantages that conflict with the Company or its customers. Material conflicts of interest that are not merely temporary shall lead to the termination of the office. At the Annual General Meeting, the body reports on any arisen conflicts of interest and on how they have been dealt with. The Supervisory Board’s members shall not disclose confidential information.

The Company does not pursue a diversity concept within the meaning of Section 289f, para. 2 no. 6 HGB [Handelsgesetzbuch; German Commercial Code]. In the composition of the authorised representative body and the Supervisory Board, the experience, skills and expertise of the individuals are of primary importance to the Company. For this reason, the Management Board and the Supervisory Board currently consider the diversity criteria to be of secondary importance, even though they are expressly welcomed.

Annual General Meeting

The Annual General Meeting of ATOSS Software SE is held annually in Munich. Among other things, it decides on the profits distribution, the discharge of the Management Board, the election of Supervisory Board members or their discharge, and the election of the auditor.

The Management Board informs the Supervisory Board on a regular basis, promptly, unsolicited and comprehensively about all material issues related to the business development as well as the potential risks to the Group's corporate development. At the same time, the corporate strategic direction is coordinated with each other in joint consultations. Should extraordinary events occur which are of significance for the assessment of the situation and development or ATOSS Software SE’ management, the Management Board shall promptly inform the Chairman of the Supervisory Board. The latter ensures that the ATOSS Supervisory Board is informed and, if necessary, calls a Supervisory Board extraordinary meeting.

ATOSS Software SE’s Board of Directors submits the sales, budget, balance sheet and cash flow planning to the Supervisory Board for approval before the beginning of each financial year. The Supervisory Board is informed about deviations of the actual values from the submitted planning as well as about the adjustments to the planning in the following meetings. If the development of business shows significant unexpected deviations from the submitted planning at short notice, ATOSS Software SE’s Management Board shall promptly inform the Chairman of the Supervisory Board. The latter shall - if necessary - convene a Supervisory Board’s extraordinary meeting.

Although the Articles of Association of ATOSS Software SE include the option of appointing only one person to the Management Board, the Supervisory Board ensures that the Management Board consists of at least two persons. The Supervisory Board appoints a person from the Management Board as Chairman or spokesman of the Management Board.

Verbal reports of the Management Board to the Supervisory Board shall be accompanied by the submission of written documentation (also in electronic form). As a matter of principle, ATOSS Software SE’s Management Board, in consultation with the Chairman of the Supervisory Board, forwards these documents to the Supervisory Board members in good time prior to the relevant Supervisory Board meeting in order to enable them to an intensive preparation.

As part of its task of appointing the Management Board’s members, the Supervisory Board ensures

• a balanced variety of qualifications and the ability of the individual members of the Management Board to work in a team;
• together with the Management Board, a long-term succession planning;
• that only in the case of special circumstances a reappointment is possible within one year before the end of the appointment period with simultaneous cancellation of the current appointment;
•  an objective performance assessment as a basis for deciding on contract extensions of the members in office of the Management Board.

The ATOSS Software SE’s Management Board shall inform the Supervisory Board in good time of any planned transactions (other than day-to-day business) between ATOSS Software SE and the Management Board’s members and shall ensure that such transactions are not carried out without the prior consent of the Supervisory Board. The Supervisory Board will only give its approval to such a transaction if it is in line with usual industry conditions and does not run counter to the interests of ATOSS Software SE.

The Management Board shall inform the Supervisory Board at an early stage of the planned transactions (other than day-to-day business) among members of the Management Board. These require the prior approval of the Supervisory Board. Sideline activities of the Management Board’s members, in particular the assumption of supervisory board mandates within companies not belonging to ATOSS Software SE, require the approval of the Supervisory Board.

The Management Board shall ensure that the Compliance Officer for Insider Law reports to the Supervisory Board at least once a year.

The Supervisory Board has established an audit committee to support the Supervisory Board in the performance of its duties. The audit committee deals in particular with the tasks specified in Section 107, para. 3 sentence 2 AktG [Aktiengesetz; German Stock Corporation Act], i.e. primarily with the monitoring of accounting, the accounting process, the effectiveness of the internal control system, the risk management system and the internal audit system, the audit of the financial statements and compliance. The audit committee is concerned with the independence of the auditor, the determination of audit focal points as well as the additional services provided by the auditor and preliminarily decides on the approval of permissible non-audit services. It regularly assesses the quality of the audit. The audit committee discusses with the auditor the assessment of the audit risk, the audit strategy and audit planning as well as the audit results. The chairman of the audit committee regularly discusses the progress of the audit with the auditor and reports to the committee on this. The audit committee regularly consults with the auditor, also without the Executive Board, and otherwise meets mainly on an ad hoc basis.

The audit committee shall consist of the following members:

• Mr. Klaus Bauer (Chairman of the audit committee)
• Mr. Moritz Zimmermann
• Mr. Rolf Baron Vielhauer von Hohenhau
• Mr. Jörn Nikolay (since 9 November 2023)

The Chairman of the Audit Committee, Mr Klaus Bauer, is independent and has special knowledge and experience in the application of accounting principles and internal control and risk management systems. He is a trained accountant and has held senior positions in accounting, finance and controlling for many years, most recently as a member of the executive board of a listed company and Chief Operating Officer there, where he was also regularly involved in auditing issues.  This also includes sustainability reporting and its audit.

Mr. Moritz Zimmermann also has expertise in the fields of accounting and auditing due to his education, his many years of experience as a founder and managing director of a stock corporation, in management positions of a listed technology group and as a general partner of a venture capital company.

Mr. Rolf Baron Vielhauer von Hohenhau is a graduate in business administration and has been President of the Association of Taxpayers (Bavarian State Association) for many years. Due to his professional background, he fulfils the qualification of a financial expert and has special knowledge in the field of auditing.

The members of the Audit Committee as a whole are familiar with the sector in which the Company operates.

Further information pursuant to Section 285, no. 10 HGB on the composition of the bodies can be found in the notes to the consolidated financial statements.

The Supervisory Board considers all at least three of its current members (Moritz Zimmermann, Klaus Bauer, Rolf Baron Vielhauer von Hohenhau) to be independent within the meaning of Clause C.6 GCGC [German Corporate Governance Code]. According to the recommendation in Clause C.7, paragraph 2 DCGK, when assessing the independence of its members, shareholder representatives shall take into consideration, among other things, whether he/she has been a member of the Supervisory Board for more than 12 years. Baron Vielhauer von Hohenhau has been a member of the Supervisory Board of the Company since 2001, so that according to Clause C.7, paragraph 2 last indent DCGK a formal indicator is given which could speak against his independence. However, Baron Vielhauer von Hohenhau's long membership in the Supervisory Board is an expression of special expertise, on the basis of which he has repeatedly been proposed for election to the Supervisory Board and elected by the Company's Annual General Meeting. His long time experience enrich the work of the Supervisory Board and do not impair its ability to perform its duties with the due independence.

The current remuneration report, the auditor's report on the audit of the remuneration report, the applicable remuneration system for the members of the Management Board and the Supervisory Board and the last resolutions of the Annual General Meeting on the remuneration systems of the Management Board and the Supervisory Board or the remuneration of the Supervisory Board are available on the Company's website.

Targets for the proportion of women in the Management Board and Supervisory Board

Pursuant to Section 111, para. 5 AktG, the Supervisory Board shall set targets for the proportion of women in the Management Board and in the Supervisory Board. If the proportion of women is below 30 per cent when the target figures are set, the target figures may no longer fall below the respective proportion achieved. At the same time, deadlines for achieving the target figures must be set, with a maximum period of five years.

In its meeting on 29 April 2022 the Supervisory Board has decided, with effect from 1st July 2022, that the target figure for the proportion of women on the Management Board and Supervisory Board shall  be at least 0 per cent respectively. A deadline on 30 June 2027 was set for the achievement of each of these target figures.

In setting the target figure of 0 per cent for the Management Board, the Supervisory Board was guided by the following considerations and justified this determination as follows: the Supervisory Board respects the objectives pursued by introducing a women's quota and places great value to equal treatment and equal opportunities for women and men as well as wider diversity. The staffing of Management Board positions shall be oriented towards the good of the Company. When selecting members of the Management Board, the Supervisory Board looks for personal suitability, integrity, convincing leadership qualities, international experience, professional qualifications for the task to be taken on, past performance, knowledge of the Company and the ability to adapt to changing processes. The aspect of diversity is an important selection criterion when staffing Management Board positions, also with regard to aspects such as age, gender, origin and educational and professional background. Following the successful filling of two vacancies in the Management Board in 2021 and the expansion of the Management Board to four members, the restructuring and expansion of the Management Board has been completed for the time being from the perspective of the Supervisory Board. Based on the size and composition of the Management Board now available and the terms of the current Management Board employment contracts, no changes in staffing are planned, so that the target applicable until 30 June 2027 for the proportion of women in the Management Board was set at 0 per cent.

In setting the target figure of 0 per cent for the Supervisory Board, the Supervisory Board was guided by the following considerations and justified this determination as follows: the Supervisory Board respects the objectives pursued by introducing a women's quota and places great value to equal treatment and equal opportunities for women and men as well as wider diversity. The staffing of Supervisory Board positions shall also be oriented towards the good of the Company. The Supervisory Board’s members shall each have the expertise, skills and professional experience necessary for the proper performance of their duties and shall be familiar as a whole with the sector in which the Company operates. At least one member of the Supervisory Board shall have expertise in the field of accounting, at least one other in the field of auditing. When proposing candidates for election to the Supervisory Board, the Supervisory Board looks for personal suitability, integrity, convincing leadership qualities, international experience, professional qualifications and also takes into account previous experience and knowledge of the Company. The aspect of diversity is an important selection criterion in the nomination of Supervisory Board candidates, also with regard to aspects such as age, gender and educational and professional background. Nevertheless, the Supervisory Board pursues the purpose of furtherly developing the skills and experience in the Supervisory Board on the basis of all the criteria outlined above and of keeping a balance between continuity and innovation. Against this backdrop, in the opinion of the Supervisory Board and subject to the decision-making authority of the Annual General Meeting, no changes were required in the staffing of the Supervisory Board at the time of determination, so that the target for the proportion of women in the Supervisory Board, which applies until 30 June 2027, continues to be set at 0 per cent.

Target figures for the proportion of women at the first and second management levels

Pursuant to Section 76, para. 4 AktG, the Management Board shall set a target figure for the proportion of women in the two management levels below the Management Board. If the proportion of women is below 30 per cent when the target figures are set, the target figures may no longer fall below the respective proportion achieved. At the same time, deadlines shall be set for achieving the target figures. The deadlines may not exceed five years in each case.

At its meeting on 4 April 2022, the Management Board decided that the target figure for the proportion of women should be at least 30 per cent at the first management level and at least 40 per cent at the second management level with effect from 1 July 2022. A deadline on 30 June 2027 has been set for achieving these target figures. The first management level below the Executive Board includes members of the Executive Management Committee and authorised signatories, while the second management level below the Executive Board includes all managers with personnel responsibility.

Good corporate governance is an essential basis for sustainable and long-term Company success. The Supervisory Board and the Management Board of ATOSS Software SE are committed to this good corporate governance. Their principles of responsible corporate governance and control determine the actions of the Company's executive bodies. Future developments in this field will be closely monitored and the corporate governance structures - if deemed necessary or appropriate - will be further developed accordingly.

In accordance with Principle 23 of the German Corporate Governance Code, the Board of Management and Supervisory Board of ATOSS Software SE report annually on the corporate governance of the company. The declaration of conformity with the recommendations of the German Corporate Governance Code in the version dated 28 April 2022, as required by Section 161 of the German Stock Corporation Act (AktG), was adopted by the Board of Management and Supervisory Board on 7 December 2023 and made publicly available on the company's website on 7 December 2023.