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HSBC HOLDINGS PLC
Report of the Directors: Governance (continued)
Board of Directors > The Board
254
Board of Directors
The Board
The objective of the management structures within
HSBC, headed by the Board of Directors of HSBC
Holdings and led by the Group Chairman, is to
deliver sustainable value to shareholders.
Implementation of the strategy set by the Board is
delegated to the Group Management Board under the
leadership of the Group Chief Executive.
HSBC Holdings has a unitary Board of
Directors. The authority of each Director is exercised
in Board Meetings where the Board acts collectively
as a unit. At 5 March 2007 the Board comprises the
Group Chairman, Group Chief Executive, Group
Finance Director and 15 non-executive Directors.
The names and brief biographical particulars of the
Directors are listed on pages 248 to 250. The Group
Chairman, Group Chief Executive and Group
Finance Director are employees who carry out
executive functions in HSBC in addition to their
duties as Directors. Non-executive Directors are not
HSBC employees and do not participate in the daily
business management of HSBC. Non-executive
Directors bring an external perspective,
constructively challenge and help develop proposals
on strategy, scrutinise the performance of
management in meeting agreed goals and objectives
and monitor the reporting of performance. The non-
executive Directors have a wealth of experience
across a number of industries and business sectors,
including the leadership of large, complex
multinational enterprises. The roles of non-executive
Directors as members of Board committees are set
out on pages 259 to 262. It is estimated that non-
executive Directors spend 24 days per annum on
HSBC business after an induction phase, with
Committee members devoting significant additional
time.
The Board sets the strategy for HSBC through
the five-year strategic plan and approves the annual
operating plans presented by management for the
achievement of the strategic objectives. The annual
operating plans ensure the efficient disposition of
HSBC’s resources for the achievement of these
objectives. The Board delegates the management and
day-to-day running of HSBC to the Group
Management Board but retains to itself approval of
certain matters including annual plans and
performance targets, procedures for monitoring and
control of operations, the authority or the delegation
of authority to approve credit, market risk limits,
acquisitions, disposals, investments, capital
expenditure or realisation or creation of a new
venture, specified senior appointments, and any
substantial change in balance sheet management
policy.
The Directors who served during the year were
Sir John Bond, Lord Butler, R K F Ch’ien,
J D Coombe, Baroness Dunn, R A Fairhead,
D J Flint, W K L Fung, M F Geoghegan, S K Green,
S Hintze, J W J Hughes-Hallett, A W Jebson, Sir
John Kemp-Welch, Sir Brian Moffat, Sir Mark
Moody-Stuart, G Morgan, S W Newton,
S M Robertson, H Sohmen and Sir Brian
Williamson.
Sir John Bond, A W Jebson and Sir John Kemp-
Welch retired as Directors at the conclusion of the
Annual General Meeting held on 26 May 2006.
S M Robertson was appointed a Director on
3 January 2006, G Morgan was appointed a Director
on 1 October 2006 and J F Gil Díaz was appointed a
Director on 2 January 2007 and resigned on 5 March
2007.
The Board of Directors meets regularly and
Directors receive information between meetings
about the activities of committees and developments
in HSBC’s business.
Seven Board meetings were held during 2006.
Lord Butler, R K F Ch’ien, J D Coombe, Baroness
Dunn, D J Flint, M F Geoghegan, S K Green,
S Hintze, Sir Brian Moffat, S M Robertson,
H Sohmen and Sir Brian Williamson attended all of
the Board meetings. R A Fairhead, W K L Fung,
J W J Hughes-Hallett, Sir Mark Moody-Stuart and
S W Newton attended six of the Board meetings. Sir
John Bond and A W Jebson attended the four Board
meetings held before they ceased to be Directors. Sir
John Kemp-Welch attended three of the four Board
meetings held before he ceased to be a Director.
G Morgan attended the one Board meeting held
following his appointment.
During 2006, the non-executive Directors and
the Group Chairman met twice without the presence
of the Group Chief Executive and Group Finance
Director. In addition, the non-executive Directors
met once without Sir John Bond when he was Group
Chairman to discuss his performance and on one
other occasion without S K Green, following his
appointment as Group Chairman.
In addition to the meetings of the principal
Committees referred to in the following pages,
eleven other meetings of Committees of the Board
were held during the year to discharge business
delegated by the Board.
All Directors attended the 2006 Annual General
Meeting.