Applicable rules and regulations
Neova Oy is a Finnish non-listed limited liability company whose decision-making and management comply with the applicable legislation, such as the Finnish Limited Liability Companies Act, the Finnish Accounting Act and the company’s Articles of Association (Appendix 1) as well as the Shareholders’ Agreement between the company’s owners. In addition, Neova Oy complies with the Government Resolution on the handling of Corporate Governance matters in publicly owned and affiliated companies issued by the Ownership Steering Department of the Prime Minister’s Office (“Government Resolution on the State Ownership Policy, available at https://vnk.fi/en/government-ownership-steering/ownership-policy/data-bank) and, where applicable, the Securities Market Association’s Finnish Corporate Governance Code, which took effect on 1 January 2020 (“Corporate Governance Code”, available at https://cgfinland.fi/en/corporate-governance-code/).
The company’s Articles of Association (Appendix 1) include a redemption clause. Pursuant to the redemption clause, if a share is transferred to an outside party, other than one that exercises control over a shareholder of the company, the other shareholders shall have the right to redeem the transferred shares.
The company publishes a Corporate Governance Statement annually together with the annual report and management report.
Divisions and business functions
Neova Group’s operations consist of Kekkilä-BVB Oy and the Neova Terra division as well as Group Services operations.
Kekkilä-BVB consists of four business areas: Central Europe, Global, Nordics and Materials. Kekkilä-BVB specialises in growing media, recycling, wholesale of peat raw material and sale of bedding peat.
The Neova Terra division consists of four business areas. The Real Estate Development and Renewable Energy business is responsible for Neova’s land assets and develops land owned by Neova for the next form of land use, such as wind and solar power. The Peat and New Materials business is responsible for the Group’s peat production, logistics and sales to external customers. Novactor is at the forefront of the activated carbon market. The Innovation and New Business Accelerator business develops new products from peat and other natural materials
The Group Services function consists of HR, Finance & Business Control, ICT, Communications & Public Affairs and Legal Services & Internal Audit for the entire Group.
Each division and function is responsible for its operations throughout Neova Group’s operating countries and subsidiaries.
Neova’s governing bodies
The highest decision-making power in Neova is exercised by the shareholders at the General Meeting. The management of the Group is the responsibility of the Board of Directors appointed by the General Meeting and the CEO appointed by the Board of Directors. The work of the Board of Directors and CEO is supervised by the Supervisory Board appointed by the General Meeting. The Group Management Team and other senior management assist the CEO in his duties. The Board of Directors decides on the Group’s governance systems and ensures that the company observes good corporate governance.
