UK Corporate Governance Code Compliance Statement
Strong corporate governance has a key role to play in protecting our business and its long term success, especially in challenging conditions. Our corporate governance report is set out on pages 62 to 91 of the Annual Report 2015. Its aim is to provide a clear and comprehensive explanation of Rotork’s governance framework and how it is applied day to day. We are subject to the UK Corporate Governance Code (the Code), which was revised in 2014. During 2015, Rotork complied with the revised Code, save in two respects.
Firstly, the annual performance review of the Board (Code Provision B.6) took place in early 2016. The review was delayed until after the end of the 2015 financial year to enable the Chairman to have sufficient time, following his appointment in April 2015, to formulate a clear understanding of the dynamics of the Board under his Chairmanship, together with his own assessment of the strengths and weaknesses of individual Board members. These insights were used to develop an improved performance review.
Secondly, in line with the revised Code, further steps were taken during 2015 to facilitate improved ongoing oversight by the Board of the Group’s risk management and internal control processes (Code Provision C.2.3). The new reporting structures have been designed and were implemented during the fourth quarter of 2015. Accordingly, the Board believes that the Company was in compliance with this element of the Code during the fourth quarter of 2015.
Corporate governance does not stop at the boardroom. It is important that the strong governance principles demonstrated by the Board are carried on throughout the Group at every level and in every location. As we continue to grow through acquisition, it becomes increasingly important to ensure that the culture of sound governance is applied worldwide in a consistent and unified way to ensure Rotork’s unique culture is retained and developed.