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CORPORATE GOVERNANCE (CONTINUED)
AUDIT COMMITTEE
The Audit Committee was established to review the Group’s financial reporting, internal controls and corporate governance issues
and make relevant recommendations to the Board. All Committee members possess appropriate professional qualifications,
accounting or related financial management expertise as required under the Listing Rules.
The Audit Committee met three times to date in 2012 (with a 100% attendance rate) to review with management and the
Company’s internal and external auditors, the Group’s significant internal controls and financial matters as set out in the
Committee’s written terms of reference and make relevant recommendations to the Board.
The Committee’s review covers the audit plans and findings of internal and external auditors, external auditor’s independence and
performance, provision of non-audit services by our external auditor, the Group’s accounting principles and practices, goodwill
assessment, listing rules and statutory compliance, connected transactions, internal controls, risk management, treasury, financial
reporting matters (including the interim financial report for the six months ended 30 June 2012 for the Board’s approval) and the
adequacy of resources, qualifications and experience of staff of the Company’s accounting and financial reporting function as well
as their training programmes and budget. Its current members include:
Mr Paul Edward SELWAY-SWIFT* – Committee Chairman
Mr Allan WONG Chi Yun*
Professor Franklin Warren McFARLAN*
Mr Martin TANG Yue Nien*
Dr FU Yuning*
RISK MANAGEMENT AND SUSTAINABILITY COMMITTEE
The Risk Management and Sustainability Committee was established to make recommendations to the Board on the Group’s risk
management and internal control systems, and the Group’s practices and strategies on corporate responsibility and sustainability.
The Committee reports to the Board in conjunction with the Audit Committee.
The Risk Management and Sustainability Committee met three times to date in 2012 (with an average attendance rate of 87%) to
review risk management procedures pertinent to the Group’s significant investments and operations. The scope of review covers
receivables management, credit risk management, inventory management, goodwill assessment, tax compliance issues, litigation
exposures, acquisitions and integration, contingency plans, other operational and financial risk management as well as corporate
responsibility and sustainability. Its current members include:
Dr Victor FUNG Kwok King – Committee Chairman
Mr Martin TANG Yue Nien*
Dr William FUNG Kwok Lun
Mr Bruce Philip ROCKOWITZ
Mr Spencer Theodore FUNG (appointed on 14 May 2012)
Mr Srinivasan PARTHASARATHY (Group Chief Compliance Officer)
12 LI & FUNG LIMITED | INTERIM REPORT 2012