This section of the Annual Report and Accounts 2008 has been prepared in respect of the Code of Best Practice in the Combined Code on Corporate Governance (the Code) issued by the Financial Reporting Council in June 2006. Together with the Directors’ remuneration report, it explains how the Group’s corporate governance framework supports the Company’s application of all the main principles of good governance set out in the Code to its organisational structure, its processes to appoint and remunerate Directors, its contact with shareholders and its financial reporting, internal control and assurance procedures. The Board considers that throughout the year to 31 December 2008, the Company complied with all relevant provisions of Section 1 of the Code.
The Board is committed to maintaining high standards of corporate governance in directing the Group’s affairs and in its accountability to shareholders. It also believes that good governance facilitates efficient and effective management that can deliver shareholder value over the longer term. To support this commitment and belief, the Group operates within an approved governance framework, which is kept under regular review and documented in the Board Charter. The Nomination and Governance Committee reviews the Board Charter regularly in light of developments in regulatory guidance and corporate governance best practice. The Board Charter is complemented by the Group’s Code of Business Conduct, which sets out the Group’s standards in terms of operational excellence, compliance responsibilities, customers, people and other stakeholders.