The corporate governance of Fiera Milano S.p.A., which exercises direction and control over its direct and indirect subsidiaries, is based on a traditional administration and control model characterised by the existence of a Board of Directors and a Board of Statutory Auditors.
The Company has a corporate governance system that complies with prevailing law and regulations and with the Self-regulatory Code of Listed Companies of Borsa Italiana S.p.A. In 2016, the Milan Court – Prevention Court Independent Section issued administration orders under Article 34 of Legislative Decree 159/2011 to the subsidiary Nolostand and to Fiera Milano S.p.A.; the latter order was limited to the business area linked to Nolostand as evidence of business corruption was only found in the area linked to this subsidiary, the exhibition stand-fitting division.
The administration orders are not intended as punitive or severe measures but are to safeguard assets and strengthen business continuity. Following the issue of the administration orders, Fiera Milano and Nolostand, with the collaboration of the Court-appointed Administrator, implemented measures to improve, amend and introduce new rules for more effective and secure business management. Within the same context, the Group also implemented initiatives to break with the past and to optimise, correct and introduce new rules to improve corporate management based on new business models and methodologies.
Moreover, those employees of Nolostand and Fiera Milano cited in the investigations of the Milan Public Prosecutor and by the Milan Court were suspended and/or dismissed. The measures are designed to gradually bring the business management of the Company in line with current best practice in the sector. The new measures also enabled the exhibition business activities of the Fiera Milano Group to continue during a period of the calendar that was particularly important in terms of the number and importance of the exhibitions.