Vodafone 2008 Annual Report Download - page 67

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Board meetings
The Board meets at least eight times a year and the meetings are structured to
allow open discussion. All directors participate in discussing the strategy, trading
and financial performance and risk management of the Company. All substantive
agenda items have comprehensive briefing papers, which are circulated one
week before the meeting.
The following table shows the number of years directors have been on the Board
at 31 March 2008 and their attendance at scheduled Board meetings they were
eligible to attend during the 2008 financial year:
Years Meetings
on Board attended
Sir John Bond 3 8/8
John Buchanan 5 8/8
Arun Sarin 8 8/8
Vittorio Colao 1 8/8
Andy Halford 2 8/8
Dr Michael Boskin 8 8/8
Alan Jebson 1 8/8
Nick Land 1 8/8
Anne Lauvergeon 2 7/8
Simon Murray (from 1 July 2007) <1 6/7
Professor Jürgen Schrempp 7 7/8
Luc Vandevelde 4 8/8
Anthony Watson 2 8/8
Philip Yea 2 8/8
Lord Broers (until 24 July 2007) n/a 2/2
In addition to regular Board meetings, there are a number of other meetings to
deal with specific matters. Directors unable to attend a Board meeting because
of another engagement are nevertheless provided with all the papers and
information relevant for such meetings and are able to discuss issues arising in
the meeting with the Chairman or the Chief Executive.
Division of responsibilities
The roles of the Chairman and Chief Executive are separate and there is a division
of responsibilities that is clearly established, set out in writing and agreed by the
Board to ensure that no one person has unfettered powers of decision. The Chairman
is responsible for the operation, leadership and governance of the Board, ensuring
its effectiveness and setting its agenda. The Chief Executive is responsible for the
management of the Group’s business and the implementation of Board strategy
and policy.
Board balance and independence
The Company’s Board consists of 14 directors, 13 of whom served throughout the
2008 financial year. At 31 March 2008, in addition to the Chairman, Sir John Bond,
there were three executive directors and ten non-executive directors.
The Deputy Chairman, John Buchanan, is the nominated senior independent
director and his role includes being available for approach or representation by
directors or significant shareholders who may feel inhibited from raising issues
with the Chairman. He is also responsible for conducting an annual review of
the performance of the Chairman and, in the event it should be necessary,
convening a meeting of the non-executive directors.
The Company considers all of its present non-executive directors to be fully
independent. The Board is aware of the other commitments of its directors and is
satisfied that these do not conflict with their duties as directors of the Company.
The names and biographical details of the current directors are given on pages 62
and 63. Changes to the commitments of the directors are reported to the Board.
For each of the annual reports issued since 2004, Governance Metrics
International, a global corporate governance ratings agency, ranked the Company
amongst the top UK companies, with an overall global corporate governance
rating of eight and a half and above out of ten.
In the Company’s profile report by Institutional Shareholder Services Inc. (“ISS”),
dated 1 May 2008, the Company’s governance practices outperformed 95.9% of
the companies in the ISS developed (excluding US) universe, 88.1% of companies
in the telecommunications sector group and 96.5% of the companies in the UK.
Compliance with the Combined Code
The Company’s ordinary shares are listed in the UK on the London Stock Exchange.
In accordance with the Listing Rules of the UK Listing Authority, the Company
confirms that throughout the year ended 31 March 2008 and at the date of this
Annual Report, it was compliant with the provisions of, and applied the principles
of, Section 1 of the 2006 FRC Combined Code on Corporate Governance
(the “Combined Code”). The following section, together with the “Directors’
Remuneration” section on pages 71 to 81, provides details of how the Company
applies the principles and complies with the provisions of the Combined Code.
Board organisation and structure
The role of the Board
The Board is responsible for the overall conduct of the Group’s business and has
the powers, authorities and duties vested in it by and pursuant to the relevant
laws of England and Wales and the Articles of Association. The Board:
has final responsibility for the management, direction and performance
of the Group and its businesses;
is required to exercise objective judgement on all corporate matters
independent from executive management;
is accountable to shareholders for the proper conduct of the business; and
is responsible for ensuring the effectiveness of and reporting on the Group’s
system of corporate governance.
The Board has a formal schedule of matters reserved to it for its decision and
these include:
Group strategy;
major capital projects, acquisitions or divestments;
annual budget and operating plan;
Group financial structure, including tax and treasury;
annual and half-yearly financial results and shareholder communications;
system of internal control and risk management; and
senior management structure, responsibilities and succession plans.
The schedule is reviewed periodically. It was last formally reviewed by the
Nominations and Governance Committee in September 2005, at which time
it was determined that no amendments were required. Its continued validity
was assessed as part of the performance evaluations conducted in the 2008
financial year.
Other specific responsibilities are delegated to Board committees which operate
within clearly defined terms of reference. Details of the responsibilities delegated
to the Board committees are given on pages 67 to 68.
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The Board of the Company is committed to high standards of corporate governance, which it considers
are critical to business integrity and to maintaining investors’ trust in the Company. The Group expects
all its directors and employees to act with honesty, integrity and fairness. The Group will strive to act in
accordance with the laws and customs of the countries in which it operates; adopt proper standards of
business practice and procedure; operate with integrity; and observe and respect the culture of every
country in which it does business.
Vodafone Group Plc Annual Report 2008 65
Corporate Governance