2011 - Li & Fung Limited

GROUP CHAIRMAN AND EXECUTIVE DEPUTY CHAIRMAN
The role of the Group Chairman is separate from that of the
Group Managing Director who was designated as Executive
Deputy Chairman on 18 May 2011. This is to enhance their
respective independence, accountability and responsibility. Their
respective responsibilities are clearly established and defined in
writing by the Board.
Group Chairman • responsible for ensuring that the Board is
functioning properly, with good corporate
governance practices and procedures.
Executive Deputy • responsible for managing the Group’s
Chairman business, including the implementation of
major strategies and initiatives adopted
by the Board with the support from
other Executive Directors and Senior
Management, and within those authorities
delegated by the Board.
ROLES AND RESPONSIBILITIES OF THE BOARD
The Board is responsible for setting up the overall strategy as
well as reviewing the operation and financial performance of
the Group. The Board reserved for its decision or consideration
matters covering overall Group strategy, major acquisitions
and disposals, annual budgets, annual and interim results,
recommendations on Directors’ appointment or reappointment,
approval of major capital transactions and other significant
operational and financial matters.
The Non-executive Directors (majority of whom are
independent), who combine to offer diverse industry expertise,
serve the important function of advising the management on
strategy and ensuring that the Board maintains high standards
of financial and other mandatory reporting requirements as well
as providing adequate checks and balances for safeguarding
the interests of shareholders and the Company as a whole.
CORPORATE GOVERNANCE (CONTINUED)
DELEGATION TO MANAGEMENT
Day-to-day operational responsibilities are specifically delegated
by the Board to management. Major matters include:
• the preparation of annual and interim accounts for Board
approval before public reporting;
• execution of business strategies and initiatives adopted by
the Board;
• monitoring of operating budgets adopted by the Board;
• implementation of adequate systems of risk management
and internal control procedures; and
• compliance with relevant statutory requirements, rules and
regulations.
BOARD AND COMMITTEE MEETINGS
Board meetings are scheduled one year in advance to facilitate
maximum attendance by Directors. The meeting agenda is
set by the Group Non-executive Chairman in consultation with
members of the Board. Senior Management is usually invited
to join Board meetings to enhance the Board and management
communication. External auditor attended the Company’s 2011
Annual General Meeting to answer any questions from the
shareholders on the audit of the Company.
LI & FUNG LIMITED | ANNUAL REPORT 2011
25