Responsible Responsible Specialist
Chairman/ BoD Group CEO + Group CEO or Executive Department (Purchaser) /
Ref. Description Notes
of MEDK Group CFO Group CFO Management Head / General Project
member Manager Manager
1 Extraordinary Business Events
Acquisition or disposal of land and buildings:
1.01 Owned by a Group Company X In alignment with Group CEO and Group CFO.
Owned by MEDK X
- In alignment with Group CEO and Group CFO.
1.02 Acquisition of business X
- This shall include acquisitions on new business lines/segments.
- In alignment with Group CEO and Group CFO.
1.03 Disposal of business X
- This shall include disposal of new business lines/segments.
1.04 Restructuring/business closure X In alignment with Group CEO and Group CFO.
1.05 Press releases and articles written X X
Interviews PR responsible members of the marketing and corporate communication
1.06 - trade publications X X department can speak with the trade press at exhibitions, press meetings,
- general/financial/business press phone interviews etc.
Definition: when the company commits money or resources to a nonprofit
1.07 Sponserships X X
event or program in exchange for specific promotional benefits
Establishment of Management Incentive Compensation
1.08 X
Plan
2 Assets/inventory
Acquisition (at cost) or disposal (at NBV) of plant,
machinery, motor vehicles, fixtures & fittings, office
equipment:
In case of deviations between this and the Limits stated under the
2.01
Up to EUR 20k X Financial Control Policy (FCP), then the FCP limits shall prevail.
Over EUR 20k X
Over EUR 250k X
Finance Leases (excluding motor vehicles)
Up to EUR 10k (annual leasing) X Responsible Executive Management member in this case shall be the CEO
2.02
Over EUR 10k X X of the operating company
Over EUR 150k X X
Acquisition or disposal of plant, machinery or equipment
through operating leases:
2.03 Any requests to be issued to procurement?finance?IT?
Up to EUR 100k X
Over EUR 100k X
- In case of deviations between this and the Limits stated under the
Sale of assets in normal course of business commercial Limits of Authorities (LoI) or the Financial Control Policy (FCP),
then the LoI or FCP limits shall prevail.
2.04 Up to EUR 10k X
- ‘Normal course of business’ implies sale at market value.
Over EUR 10k X - Surplus material disposal must be approved.
- Any requests to be issued to procurement?finance?IT?
Scrapping of inventories shall be done in accordance with the following:
- Accounting Manual of MEDK and any related guidelines. and;
- Applicable local laws and regulations in this regard.
2.05 Scrapping (write off) of obsolete inventory X
Fiscal scrapping shall be subject to the decision of the responsible
technical lead and Responsible Department Head/GM, based on no-value
and no-utilization possibilities.
For Gas Solutions segment: purchases items for
inventory need approval according to the following: - This rule applies to the Gas Solutions segment. Another rules will be
defined for the Envirotech segment.
2.06 - This rule shall not apply to project execution and shall only be managed
Up to EUR 70k X by Procurement department.
Up to EUR 135k X - In case of a purchase above EUR 135k, Group CFO shall be informed.
Over EUR 135k X
For Gas Equipment segment: stock purchases (without
order) need approval according to the following:
- For GEC, current established local guidelines and instructions shall
2.07 prevail.
Up to EUR 30k X - In case of a purchase above EUR 60k, Group CFO shall be informed.
Up to EUR 60k Unit Director
Over EUR 60k X
3 Personal /employees
- Appointment/dismissal of any employee shall be approved jointly by 1st
Appointment and dismissal of employees (including
and 2nd levels up.
3.01 temps) not reporting directly to the Group CEO/Group
- Appointment/dismissal of any employee is subject to appropriate pre-
CFO
signed requisitions and approved documentation.
Appointment and dismissal of employees (including Changes in Executive Management team shall be approved by the Group
3.02 X
temps) reporting directly to the Group CEO/Group CFO CEO and the Chairman of the Board.
- Includes merit awards and increases due to promotions.
- Salary levels are those following the increase and include benefits and
Employee Remuneration packages for new employees
3.03 X any other incremental costs or allowances, e.g. use of company car,
and increases for existing employees
private fuel, home office allowance etc.
- Joint approval by 1st and 2nd levels up is required.
Establishment or payment of individual department or
Responsible Executive Management member in this case shall be the CEO
3.04 collective bonus or commission scheme which are not X X
of the operating company
part of Management Incentive Compensation Plan
- All authority levels must be 1 level higher than the claimant.
3.05 Employee expenses
- Accounts approval must occur for compliance purposes.
- Advances are prohibited
3.06 Expenses advances - In case of deviations between this and the rules stated under the
Financial Control Policy (FCP), then the FCP rules shall prevail.
3.07 Providing mobile and computing devices X - All authority levels must be 1 level higher than the claimant.
- Request must be raised and approved in writing. The employee must sign
3.08 Loan of company equipment to employees X to take full responsibility for all loss or damage and third party risks.
- All authority levels must be 1 level higher than the claimant.
3.09 Loans to employees All loans to employees are prohibited.
4 Expenses
Development activities, including R&D, product
development: - All R&D and product development projects shall have a business plan
and shall require approval from R&D committee.
4.01 Up to EUR 5k X
- Limit values for R&D project shall be per transaction, limits for other
Up to EUR 70k X activities shall be per ptoject.
Over EUR 70k X
Department costs/single expenditure approval levels
within annual overhead budget (including service costs
and freight - excluding employee expenses and capital
items covered elsewhere): Conflict of Interest principle applies here: The authorized persons shall not
4.02 approve their own requests, and the request shall be escalated to the next
Up to EUR 5k X level.
Up to EUR 70k X
Over EUR 70k X
4.03 Travel, Subsistence and Entertainment As per the travel policy and the Financial Control Policy.
4.04 Audit fees X Audit fees are to be approved by CFO.
5 Operations/Projects
For materials and services for production purposes and
not purchased against a specific customer contract - This may include materials / services used internally for standard
number: production.
5.01
- In case of pre-ordering (no confirmed order), an investment application
Up to 4 months forecast usage (max. EUR 100k) X X shall be completed.
Above 4 months forecast usage (or over EUR 100k) X
- This rule shall apply only in case of projects without a steering
Negative deviations from the base projects budget Committee. For projects with a steering Committee, the approval
should be approved. authority of any deviations shall be with the steering Committee.
- in any case, the Project Manager shall report any nigative deviations at
least once a month.
5.02 - the Project Manager has the responsibility to report, as soon as possible,
when a possible negative deviation is known.
Up to EUR 3k of the base project size X - a NMD (negative Margin deviation) form need to be signed or referred to
in an email when deviation occur.
Up to EUR 10k of the base project size X - Responsible Executive Management members: MBC for Gas Solutions,
Up to EUR 25k of the base project size X BOL for Gas Equipment, and ABJ for Envirotech.
Up to EUR 100k of the base project size X
Over EUR 100k of the base project size X
For Gas Solutions segment: purchases within
project/contract budget need approval according to the - This rule applies to the Gas Solutions segment. Another rules will be
following: defined for the Envirotech segment.
- Purchase orders need to be issued at every transaction. If PO has not
5.03 been prepared and >EUR 50k, Group CFO needs to approve.
Up to EUR 70k X - For purchases over EUR 130k, CTO (in case of inventory/production
related POs) or COO (in case of a project delivery and excution) shall
Up to EUR 135k X approve. Group CFO shall be informed.
Over EUR 135k X
- Purchases against a contract/PO shall be limited to the same amount as
For Gas Equipment segment: Purchases against a the sales limit under the issued PoA.
5.04
contract/PO need approval according to the following: - For GEC, current established local guidelines and instructions shall
prevail.
- In case of a project specific credit note, this should follow the rules
applicable in case of a cost deviation.
- In case of a Returned Material Authorization (RMA), this shall be
5.05 Credit notes (affecting profit or increasing stock value)
managed by the After sales unit.
- In case of any other type of credit notes, this shall be refared to
responsible EM member at MEDK.
6 Legal /commercial
6.01 Change of auditors X
In case of replacements, then it hall be approved jointly by 1st and 2nd
6.02 Employment of manpower X X
levels up.
- Excludes approved project (both commercial and internal) related
consultants.
6.03 Employment of business consultants + advisors X
- Business consultants shall not be engaged in any sales/commercial
activities without a prior approval from the responsible EM member.
Litigation of other than debt collection of routine nature,
6.04 X
(incl. contract disputes)
6.05 Technology/process licensing agreements X
6.06 Patent / attorney agreements X
6.07 Agency and Co-operation agreements X X
7 Provisions
7.01 Creation of specific provisions for bad debts Shall be managed by responsible finance team
7.02 Creation of specific provisions for inventory/stock Shall be in accordance with the model approved by MEDK
To be managed by finance and Spare Parts (in case of a service) or Project
7.03 Creation of specific provisions for warranty
Management (in case of a project).
7.04 Release of provisions Must be in line with instructions issued from time to time by MEDK.
Utilization of provisions against items that are fully
7.05 Must be in line with instructions issued from time to time by MEDK.
provided
7.06 Definition of general rules for provisions X
