Annual Report – 31 March 1999 (PDF 1.0MB) - Vodafone
Annual Report – 31 March 1999 (PDF 1.0MB) - Vodafone
Annual Report – 31 March 1999 (PDF 1.0MB) - Vodafone
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Corporate Governance<br />
Corporate Governance<br />
Introduction<br />
The Combined Code on Corporate Governance issued by the London Stock Exchange requires companies listed on the<br />
Exchange to make a disclosure statement on its application of the principles of and compliance with the provisions of<br />
good governance set out in the Code. The year ended <strong>31</strong> <strong>March</strong> <strong>1999</strong> was a momentous year for the Company and the<br />
matters described below and in the Remuneration <strong>Report</strong> relate to the position throughout the year and prior to<br />
completion of the merger with AirTouch. Upon completion, the Board intends to review all aspects of the Company’s and<br />
the Board’s future operation.<br />
With the minor exceptions explained below, relating to the appointment of a senior non-executive director, the question of<br />
training for directors and the disclosure of proxy votes at the 1998 <strong>Annual</strong> General Meeting, the Company has been in<br />
compliance with the Code provisions set out in Section 1 of the Combined Code throughout the year ended <strong>31</strong> <strong>March</strong><br />
<strong>1999</strong>. As permitted by the London Stock Exchange, the Company has complied with Code provision D.2.1 on internal<br />
controls by reporting on internal financial control in accordance with the guidance for directors on internal controls and<br />
financial reporting which was issued in December 1994. The Turnbull Committee has issued draft guidance on the wider<br />
aspects of internal control, which the Board is considering.<br />
Directors and organisation<br />
The Company presently has nine directors, seven of whom served throughout the year ended <strong>31</strong> <strong>March</strong> <strong>1999</strong>. Their<br />
biographical details are set out briefly at the Board of Directors and Secretary. Five of the directors, Lord MacLaurin (the<br />
Chairman), Professor Sir Alec Broers, John Gildersleeve, Penny Hughes and Sir David Scholey, served as non-executive<br />
directors. Penny Hughes and John Gildersleeve joined the Board on 1 September 1998 and 1 October 1998 respectively.<br />
The Company considers all its non-executive directors to be fully independent. The four executive directors are Chris<br />
Gent (the Chief Executive), Peter Bamford, Julian Horn-Smith and Ken Hydon. Sir Ernest Harrison and Sir Gerald Whent<br />
retired from the Board on 21 July 1998 and David Channing Williams retired from the Board on <strong>31</strong> <strong>March</strong> <strong>1999</strong>.<br />
Following the merger with AirTouch, which is expected to be completed in late June or July <strong>1999</strong>, the number of directors<br />
of the Company will increase to 14, seven of whom will be designated by <strong>Vodafone</strong> and seven of whom will be designated<br />
by AirTouch. Professor Sir Alec Broers and John Gildersleeve will resign with effect from the date of the merger.<br />
As each of the Company’s present directors has been elected or re-elected by the Company’s shareholders within the last<br />
three years, none is required to retire at the Company’s <strong>Annual</strong> General Meeting to be held on 21 July <strong>1999</strong>. The<br />
Company’s new Articles of Association, approved by shareholders at the Extraordinary General Meeting held on 24 May<br />
<strong>1999</strong>, provide that every director who was elected or last re-elected at or before the <strong>Annual</strong> General Meeting held in the<br />
third calendar year before the current year shall automatically retire.<br />
The Board, which meets eleven times each year and on one other occasion in the year to consider strategy, provides the<br />
effective leadership and control required for a listed company. Actual financial results are presented to each meeting,<br />
together with reports from the executive directors in respect of their areas of responsibility. From time to time, the Board<br />
receives detailed presentations from non-Board members on matters of significance or on new opportunities for the<br />
Group. Financial budgets and forecasts are regularly discussed at Board meetings. The non-executive directors<br />
periodically visit different parts of the Group and are provided with briefings and information to assist them to discharge<br />
their duties.<br />
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