ODEON & UCI Cinemas Group Annual Review 2011

ODEON & UCI Cinemas Annual Review 2011
28
Corporate Governance
Report
The boards of ODEON & UCI Cinemas Holdings Ltd and ODEON Property Group
LLP are committed to the highest standards of corporate governance as set out in
the Combined Code on corporate governance.
ODEON & UCI Cinemas Holdings Ltd
ODEON & UCI Cinemas Holdings Ltd’s
Board believes that effective corporate
governance is a fundamental aspect of
a well run company and is committed
to achieving the highest standards
of corporate governance, corporate
responsibility and risk management in
directing and controlling the business.
The following paragraphs describe
the key governance structures and
internal controls operating within the
company. Through these mechanisms,
the company aims to apply the highest
standards of corporate governance
and to conform with the spirit of the
‘Combined Code’.
Board Constitution and Procedures
The Board comprises of 10 members:
a non-executive Chairman, 2 executive
directors and 7 non-executive directors.
The Chairman is responsible for the
effective running of the Board and for
communications with all directors and
shareholders. He ensures that the Board
receives sufficient information on financial
trading and corporate issues prior to the
Board meetings. The executive directors
are responsible for day-to-day operations
and the development of strategic
plans for consideration by the Board
as a whole.
The Board meets regularly during the
year. In 2011, 12 scheduled meetings
were held in the UK during the year.
All members of the Board receive
detailed financial information and regular
presentations from executives on the
business performance, in addition to
items for decision and minutes of board
committees in advance of each board
meeting, whether they are able to attend
or not. This enables the directors to make
informed decisions on corporate and
business issues under consideration.
The Board adopted a formal schedule
of delegated authorities on 5th April
2007 whilst ensuring that key policy and
strategic decisions are made by the full
board. Such matters include, but are not
limited to, the final approval of the annual
accounts and budget, major acquisitions
and disposals, and any changes to the
Company’s financing arrangements and
financial policies. Regular updates on
risk management, health and safety, and
other key company policies are given to
the Board.
Where urgent decisions are required
on matters specifically reserved for the
Board in between meetings, there is a
process in place to facilitate discussion
and decision-making. The directors also
have access to the advice and services
of the Company Secretary and external
advisers, as appropriate.
Board Committees
The Board has established several
committees, each with clearly defined
terms of reference, procedures,
responsibilities and powers.
Finance Committee
The Finance Committee is chaired by
Mike Kinski and consists of a further 5
non-executive directors and 2 executive
directors. This committee is responsible
for making recommendations to the
board on funding strategy, capital
structure and management of financial
risks and the policies and control
procedures, approval of investments and
divestments, raising of external financing
and the granting of securities, guarantees
and indemnities as set out within the
delegated authorities. In certain specific
circumstances the Board has delegated
authorities to the committee to make
decisions in these areas.
Audit committee
The Audit committee is chaired by
Fraser Duncan and consists of a further 3
non-executive directors.
The Chief Executive Officer, Chief
Financial Officer, Director of Group
Finance and external auditors are
normally invited to attend the meeting.
The committee meets at least twice
during the financial year at appropriate
times in the reporting and audit cycle.
The committee oversees the relationship
with the external auditors. It reviews
their audit plan and discusses audit
findings with them. In addition, the
committee reviews the effectiveness
of the Company’s internal controls and
risk management systems and also
ensures that there is proportionate
and independent investigation of any
matter bought to their attention. The
committee is required to assist the
Board to fulfil its responsibilities related
to external financial reporting and
associated announcements. During the
year the committee reviewed either as a
committee or as part of the Board:
n the annual financial statements,
including the requirements for financial
reporting;
n changes proposed to the Company’s
accounting policies and practices;
n significant accounting issues;
n the audit plan and processes, and;
n the Company’s risk management
process.
The committee is also responsible for
the development, implementation and
monitoring of the Company’s policy
on external audit. The committee has
oversight responsibility for monitoring
independence, objectivity and compliance
with ethical and regulatory requirements.
The committee recommends the
appointment and reappointment of
the Company’s external auditors and
annually reviews a formal letter provided