BP 2010 Annual Report Download - page 110
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Please find page 110 of the 2010 BP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Corporategovernance
MemorandumandArticles
ofAssociation
Thefollowingsummarizescertainprovisionsofthecompany’s
MemorandumandArticlesofAssociationandapplicableEnglishlaw.This
summaryisqualiedinitsentiretybyreferencetotheUKCompaniesAct
2006(Act)andthecompany’sMemorandumandArticlesofAssociation.
ForinformationonwhereinvestorscanobtaincopiesoftheMemorandum
andArticlesofAssociationseeDocumentsondisplayonpage137.
AttheAGMsheldon17April2008and15April2010,shareholders
votedtoadoptnewArticlesofAssociation,largelytotakeaccountof
changesinUKcompanylawbroughtaboutbytheAct.Further
amendmentstotheArticlesofAssociationwereapprovedbyshareholders
atourAGMheldon15April2010.Theseamendmentsreectthefull
implementationoftheAct,amongothermatters.
Objects and purposes
Theprovisionsregulatingtheoperationsofthecompany,knownasits
‘objects’,werehistoricallystatedinacompany’smemorandum.TheAct
abolishedtheneedtohaveobjectprovisionsandsoatthecompany’slast
AGMshareholdersapprovedtheremovalofitsobjectsclausetogether
withallotherprovisionsofitsMemorandumthat,byvirtueoftheAct,are
treatedasformingpartofthecompany’sArticlesofAssociation.
Directors
ThebusinessandaffairsofBPshallbemanagedbythedirectors.The
company’sArticlesofAssociationprovidethatdirectorsmaybeappointed
bytheexistingdirectorsorbytheshareholdersinageneralmeeting.Any
personappointedbythedirectorswillholdofceonlyuntilthenextgeneral
meetingandwillthenbeeligibleforre-electionbytheshareholders.
TheArticlesofAssociationplaceageneralprohibitiononadirector
votinginrespectofanycontractorarrangementinwhichthedirectorhasa
materialinterestotherthanbyvirtueofsuchdirector’sinterestinshares
inthecompany.However,intheabsenceofsomeothermaterialinterest
notindicatedbelow,adirectorisentitledtovoteandtobecountedina
quorumforthepurposeofanyvoterelatingtoaresolutionconcerningthe
followingmatters:
• Thegivingofsecurityorindemnitywithrespecttoanymoneylentor
obligationtakenbythedirectorattherequestorbenetofthecompany
oranyofitssubsidiaries.
• Anyproposalinwhichthedirectorisinterested,concerningthe
underwritingofcompanysecuritiesordebenturesorthegivingofany
securitytoathirdpartyforadebtorobligationofthecompanyoranyof
itssubsidiaries.
• A nyproposalconcerninganyothercompanyinwhichthedirectoris
interested,directlyorindirectly(whetherasanofcerorshareholderor
otherwise)providedthatthedirectorandpersonsconnectedwithsuch
directorarenottheholderorholdersof1%ormoreofthevoting
interestinthesharesofsuchcompany.
• Proposalsconcerningthemodicationofcertainretirement
benetsschemesunderwhichthedirectormaybenetandthat
havebeenapprovedbyeithertheUKBoardofInlandRevenueor
bytheshareholders.
• A nyproposalconcerningthepurchaseormaintenanceofanyinsurance
policyunderwhichthedirectormaybenet.
TheActrequiresadirectorofacompanywhoisinanywayinterestedina
contractorproposedcontractwiththecompanytodeclarethenatureof
thedirector’sinterestatameetingofthedirectorsofthecompany.The
denitionof‘interest’includestheinterestsofspouses,children,
companiesandtrusts.TheActalsorequiresthatadirectormustavoida
situationwhereadirectorhas,orcouldhave,adirectorindirectinterest
thatconicts,orpossiblymayconict,withthecompany’sinterests.The
Actallowsdirectorsofpubliccompaniestoauthorizesuchconictswhere
appropriate,ifacompany’sArticlesofAssociationsopermit.BP’sArticles
ofAssociationpermittheauthorizationofsuchconicts.Thedirectorsmay
exerciseallthepowersofthecompanytoborrowmoney,exceptthatthe
amountremainingundischargedofallmoneysborrowedbythecompany
shallnot,withoutapprovaloftheshareholders,exceedtheamountpaidup
onthesharecapitalplustheaggregateoftheamountofthecapitaland
revenuereservesofthecompany.Variationoftheborrowingpowerofthe
boardmayonlybeaffectedbyamendingtheArticlesofAssociation.
Remunerationofnon-executivedirectorsshallbedeterminedinthe
aggregatebyresolutionoftheshareholders.Remunerationofexecutive
directorsisdeterminedbytheremunerationcommittee.Thiscommitteeis
madeupofnon-executivedirectorsonly.Thereisnorequirementofshare
ownershipforadirector’squalication.
Dividend rights; other rights to share in company prots;
capital calls
IfrecommendedbythedirectorsofBP,BPshareholdersmay,byresolution,
declaredividendsbutnosuchdividendmaybedeclaredinexcessofthe
amountrecommendedbythedirectors.Thedirectorsmayalsopayinterim
dividendswithoutobtainingshareholderapproval.Nodividendmaybepaid
otherthanoutofprotsavailablefordistribution,asdeterminedunderIFRS
andtheAct.Dividendsonordinarysharesarepayableonlyafterpayment
ofdividendsonBPpreferenceshares.Anydividendunclaimedaftera
periodof12yearsfromthedateofdeclarationofsuchdividendshallbe
forfeitedandrevertstoBP.
Thedirectorshavethepowertodeclareandpaydividendsinany
currencyprovidedthatasterlingequivalentisannounced.Itisnotthe
company’sintentiontochangeitscurrentpolicyofpayingdividendsin
USdollars.
Atthecompany’slastAGM,shareholdersapprovedtheintroduction
ofaScripDividendProgramme(Programme)andtoincludeprovisionsin
theArticlesofAssociationtoenablethecompanytooperatethe
Programme.TheProgrammeenablesordinaryshareholdersandBPADS
holderstoelecttoreceivenewfullypaidordinaryshares(orBPADSsin
thecaseofBPADSholders)insteadofcash.Theoperationofthe
Programmeisalwayssubjecttothedirectors’decisiontomakethescrip
offeravailableinrespectofanyparticulardividend.Shouldthedirectors
decidenottoofferthescripinrespectofanyparticulardividend,cashwill
automaticallybepaidinstead.
Apartfromshareholders’rightstoshareinBP’sprotsbydividend
(ifanyisdeclaredorannounced),theArticlesofAssociationprovidethat
thedirectorsmaysetaside:
• Aspecialreservefundoutofthebalanceofprotseachyeartomake
upanydecitofcumulativedividendontheBPpreferenceshares.
• Ageneralreserveoutofthebalanceofprotseachyear,whichshallbe
applicableforanypurposetowhichtheprotsofthecompanymay
properlybeapplied.Thismayincludecapitalizationofsuchsum,
pursuanttoanordinaryshareholders’resolution,anddistributionto
shareholdersasifitweredistributedbywayofadividendonthe
ordinarysharesorinpayingupinfullunissuedordinarysharesfor
allotmentanddistributionasbonusshares.
Anysuchsumssodepositedmaybedistributedinaccordancewiththe
mannerofdistributionofdividendsasdescribedabove.
Holdersofsharesarenotsubjecttocallsoncapitalbythecompany,
providedthattheamountsrequiredtobepaidonissuehavebeenpaidoff.
Allsharesarefullypaid.
108BPAnnualReportandForm20-F2010