4.4 Independence

In assessing the independence of its members, the Board of Directors applies the criteria set out in the Swiss Code of Best Practice for Corporate Governance published by economiesuisse. Independent members are non-executive members of the Board of Directors who

• have not sat on the Executive Committee in the previous three years (if ever);
• have not served as auditor-in-charge of the external auditor in the previous two years (if ever); and
• have only comparatively minor business relations with the company (if any).

The criterion of term of office cannot be used in assessing the independence of members of the Board of Directors. Based on the criteria above, all members of the Board of Directors are considered independent. The Swiss Confederation, represented on the Board of Directors by Fritz Zurbrügg, holds the majority of the capital and voting rights in Swisscom in accordance with the Telecommunications Enterprise Act (TEA). The Swiss Confederation and Swisscom maintain customer and supplier relationships; details are provided in Note 6.2 to the consolidated financial statements.