Annual Report 10/11 - ACL Cables PLC

ACL Cables PLC Annual Report 2010/11Corporate GovernanceACL Cables PLC is committed to best practices in the area of Corporate Governance. CorporateGovernance is an internal system encompassing policies, processes and people, which serves theneeds of shareholders and other stakeholders. Good governance facilitates effective managementand control of the business, while maintaining a high level of business ethics and optimizingthe value for all stakeholders. Sound Corporate Governance is reliant on external market placecommitment and legislation plus a healthy Board culture which safeguards policies and processes.Further, an important element of Corporate Governance is to ensure the accountability of certainindividuals in an organization through mechanisms that try to reduce or eliminate the dilemma ofprincipal-agent.The Corporate Governance Report, together with the Audit Committee Report & the DirectorsRemuneration Report, provides a description of the manner and extent to which ACL CablesPLC complies with the code of Best Practice in Corporate Governance issued by the Institute ofChartered Accountants of Sri Lanka and the Listing Rules of the Colombo Stock Exchange.The Board of DirectorsThe Board is collectively responsible for the success of the Company. Its role is to provideentrepreneurial leadership to the Company within a framework of prudent and effective controlswhich enables risk to be assessed and managed. The Board sets the Company’s strategic aims,ensures that the necessary financial and human resources are in place for the Company to meetits objectives, and reviews management performance. It also sets the Company’s values andstandards and ensures that its obligations to its shareholders and others are understood and met.Specific responsibilities reserved to the Board include: The Board comprises of nine Directors out of whom six are Non-Executive Directors. The namesand profiles of the Directors are given on pages 12 to 15 of this report. The Board recognizes theneed for a clear division of responsibilities in running the Board and Executive responsibilities ofrunning the Company business. Accordingly, the positions of Chairman and Managing Directorhave been separated.23