Chapter 09

Make list of attributes of effective boards of Directors and effective board Members w.r.t to
your business model and discuss it in the class.

Company law requires the board of directors to prepare financial statements for each financial
year. Under company law, the board of directors must not approve the financial statements
unless they are satisfied about that they give a true and fair view of the assets, liabilities and
financial position. Chief operating decision maker is the President and Chief Executive Officer of
the company. Company has two operating and reportable segments: (1) Software Products, in
which license, subscription and related support revenue which include updates and technical
support for all our products that make customer dreams in real and (2) Professional Services, in
which consulting, implementation and training services. Company does not allocate sales &
marketing or general and administrative expense to company’s operating segments as these
activities are managed on a consolidated basis.

In preparing these financial statements the Directors are required to:

 Select suitable accounting policies and apply them consistently.
 Make judgments and accounting estimates that are reasonable and prudent.
 State whether the financial statements have been prepared in accordance with applicable
accounting standards, identify those standards, and note the effect and the reasons for any
material departure.
 Prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the Group and Parent Company will continue in business.

They are also responsible for taking such steps that are reasonably open to them to safeguard
the assets and to prevent and detect fraud and other irregularities. The board of directors are
responsible for the maintenance and integrity of the corporate and financial information
included on the Company’s website.

As well as leading and chairing the Board, chairman responsibilities are to ensure:
 Committees are properly structured and operate with appropriate terms of reference.
 The performance of individual Directors, the Board and its committees are reviewed on a
regular basis.
 The Company has a coherent strategy and sets objectives against this.
 There is effective communication between the Company and its shareholders.

The Board members recognizes that the long-term success of the Company is reliant upon the
efforts of employees, contractors, suppliers, regulators and many other stakeholders. The
Board members has put in place a range of processes and systems to ensure that there is
close oversight and contact with its key resources and relationships. The Company aims to be
very responsive to all customers on a daily basis, responding with technical assistance or
information as requested within 24 hours.

The Board members are satisfied that has a suitable balance between independence on the
one hand, and knowledge of the Company on the other. All the Directors are encouraged to
use their independent judgment and to challenge all the matters, whether strategic or
operational, enabling the Board members to discharge its duties and responsibilities
effectively. The Board members believes that the Committees have the necessary skills and
knowledge to discharge their duties effectively.

The Non-Executive Directors of company have both breadth and depth of skills and
experience to fulfill their roles. The Company believes that the current balance of skills across
the Board members as a whole reflects a very broad range of personal, commercial and
professional skills, providing the ability to deliver the Company’s strategy for the benefit of
shareholders over the medium and long-term.

The Executive Directors are responsible for the day-to-day running of the business, the
leadership of the management team and the development and execution of corporate
strategy.

 Establish strategies and business models which promote long-term value for
clients/customers.
 Seek to understand and meet customer’s needs and expectations.
 Embed effective risk management, considering both the opportunities and threats,
throughout the organization.
 Maintain the Board as a well-functioning, balanced team led by the Chairman.
 Ensure that between the board Directors have the necessary up-to-date experience, skills
and capabilities.

Company management including board of directors and board members fulfill their promises
with concrete responsibility actions.

 Safety and security, management ensures that people can see their dreams in the VR
headset in a safest way.
 Customer orientation, company management makes sure that we are our customers’
first choice.  
 Employee experience, together we build an inspiring workplace where everyone
thrives. 
 Corporate social responsibility, company management increase Finland's well-being.