Corporate Governance

Pirelli is strongly committed in keeping its own corporate governance system constantly in line with national and international best practises, as well as making sure that it is up to date with legislative changes. Our corporate governance system is based on the following milestones:

• Central position of the Board of Directors

• Disclosure practices regarding the choices and the procedures for the decisions of the Company totally compliant with legislative regulations

• Effective system of internal control

• Effective monitoring for potential clash of interests and on a rigorous code of conduct regarding the implementation of transaction with related parties

Henceforth, in 1999 Pirelli was one of the first Italian company to adopt the "Self-Regulatory Code for listed companies" recommended by Borsa Italiana SpA, and   had as well adopted since 2002 the "Procedure of compliance with the requirements of the article 150 comma1 of the legislative decree n. 58/1998" .

During 2006, Pirelli  – after having implemented changes according to the national legislation and regulations regarding market abuses –  surveyed and updated its corporate governance instruments, in order to align them with provisions under the law no. 262/2005  and the legislative decree No. 303/2006 ("Savings Law" and the "Corrective Decree"), as well as recommendations in the new edition of the "Self-Regulatory Code for listed companies" published in March 2006.

Please find below the 2006 Annual Report on the Corporate Governance