Governance and management

Pictured from left to right:
Anssi Koski, Petri Lintunen, Juha Lemström, Essi Kiuru, Matti Paavonsalo, Sami Yläoutinen, Mauno Sievänen

The decision-making and governance of University Properties of Finland Ltd complies with the Finnish Limited Liability Companies Act (624/2006), the company’s Articles of Association and the Shareholders’ Agreement. The company also has a Corporate Governance Code.

University Properties of Finland Ltd is owned by ten universities and the Finnish government. The company is two-thirds owned by the University of Eastern Finland, University of Jyväskylä, University of Oulu, University of Lapland, Lappeenranta University of Technology, University of Tampere, Tampere University of Technology, University of Turku, University of Vaasa, and Åbo Akademi University. The Finnish government’s ownership share is represented by Senate Properties, which owns one third of the total share capital.

General Meeting

University Properties of Finland Ltd’s supreme decision-making authority is exercised by its owners, i.e. universities and Senate Properties, in the General Meeting. The General Meeting elects the Board of Directors, which is responsible for the company’s governance and the appropriate organisation of its operations. The Annual General Meeting is held within six months of the end of the financial year. Extraordinary General Meetings are held when the company’s decision-making requires it.

Board of Directors

The Annual General Meeting elects the Chairman, Deputy Chairman and members of the Board of Directors annually. The Board of Directors is comprised of six members, elected pursuant to the company’s Articles of Association. The Board meets approximately 10 times per year.

As of 31 December 2017, the members of the Board of Directors are Petri Lintunen (Chairman), Juha Lemström (Deputy Chairman), Essi Kiuru, Sami Yläoutinen, Matti Paavonsalo and Kalervo Väänänen.

CEO and Executive Board

The CEO is responsible for the day-to-day management of the company in accordance with the provisions of the Limited Liability Companies Act and the instructions and policies issued by the Board of Directors. The Board of Directors appoints and dismisses the CEO and supervises his or her work.

The Executive Board appointed by the CEO supports the CEO in the company’s management and decision-making as well as the implementation of strategy and risk management. The CEO serves as the Chairman of the Executive Board.

The members of the Executive Board are Mauno Sievänen (CEO), Anssi Koski (CFO, Deputy CEO), Aki Havia (Director of Property Development), Juha Uotila (Director of Campus Development and Marketing) and Samuel Koivisto (Director of Customer Relations and Services).

Corporate Governance Code

Ratified by the General Meeting, the Corporate Governance Code ensures good governance at all levels of the company, promotes operating effectiveness and transparency and ensures a steady stream of information for owners as well as their equal treatment. Among other things, the Corporate Governance Code states that the company does not provide financial support to political activities or activities related to politics. More on the Corporate Governance Code.

The Charter of the Board of Directors

In addition to the Corporate Governance Code, the Board of Directors has a Charter that guides its operations.

Internal control

Internal control is aimed at ensuring the efficiency and productivity of the company’s operations, the reliability of the information produced by the company and compliance with regulations and the company’s operating principles.

Internal control is the responsibility of the Board of Directors and operating management and it is implemented by all personnel. The CEO maintains the organisational structure, which includes clear written definitions of responsibilities, authorisations and reporting relationships.

Any deficiencies or areas requiring further development related to internal control that are observed in the course of business operations or otherwise are documented and reported to the CEO, who must then initiate any measures necessitated by the observations without delay. The Board of Directors evaluates the effectiveness of the company’s internal control at regular intervals.

Risk management

The objective of risk management is to comprehensively identify risks associated with operations and ensure that the risks are appropriately managed in making business decisions. The overall responsibility for the implementation of risk management lies with the CEO. The other members of the Executive Board are responsible for risk management in their respective areas of operation.

The Executive Board discusses the risk management principles and guidelines and reviews the company’s valid risk management plan at least once a year. The Executive Board regularly evaluates and monitors the company’s risks and the implementation of risk management measures.

The CEO reports to the Board of Directors on risks and changes thereto at least twice a year. The Board discusses the most significant risks and their management, and evaluates the effectiveness of risk management, at least once a year.

Internal audit

The internal audit is part of the company’s internal control system. The purpose of the internal audit is to serve as the company’s independent evaluation and assurance function to systematically evaluate and verify the effectiveness of risk management, control and management.