Aviva 2005 Annual Report Download - page 58

Aviva plc 2005 Governance
Governance continued
Directors’ report continued
Political donations
It is the Company’s policy not to make donations to political
organisations or for political causes, and it does not intend to
change this policy. Accordingly, no political donations were made
in the United Kingdom or elsewhere during the year (2004: nil).
In 2004, shareholders passed a resolution authorising the Board
to incur expenditure, up to an aggregate limit of £100,000
per annum, on activities that fall under the Political Parties, Elections
and Referendums Act 2000 (PPER). The PPER introduced a very
broad definition of political expenditure, such that some of the
activities undertaken throughout the Group’s businesses could
arguably fall within that definition. The Board sought shareholders’
authority to incur such expenditure in order to avoid any
inadvertent breaches of the PPER. The Board does not believe that
the Group has incurred any such political expenditure in the past
year. The Board’s authority to incur such political expenditure expires
in 2008.
Group employees
The Group’s statement on its employees is set out on pages 44
and 45.
In summary, the Group’s commitment to communication and
dialogue with employees continues. A strong emphasis is placed
on the provision of news through a variety of media, including
intranets (both a Group-wide intranet, Arena, and local business
unit intranets), Aviva radio, which can be accessed via mobile phone
or computer, and poster campaigns. Employees have opportunities
to voice their opinions and ask questions through intranet sites
and climate surveys. Face to face briefings and team meetings are
actively encouraged and are held in all business units across the
Group. During 2005 the Group’s businesses in the United Kingdom
established employee consultative forums.
Employee practice
Aviva Group companies are committed to providing equal
opportunities to all employees, irrespective of their sex, sexual
orientation, marital status, creed, colour, race, ethnic origin or
disability. The commitment extends to recruitment and selection,
training, career development, flexible working arrangements and
promotion and performance appraisal. In the event of members of
staff becoming disabled, every effort is made to ensure that their
employment with the Group continues and to provide specialised
training where this is appropriate.
Creditor payment policy and practice
It is the Group’s policy to pay creditors when they fall due for
payment. Terms of payment are agreed with suppliers when
negotiating each transaction and the policy is to abide by those
terms, provided that the suppliers also comply with all relevant
terms and conditions.
Aviva plc, the holding company of the Group, has no trade
creditors. In respect of Group activities in the UK, the amounts due
to trade creditors at 31 December 2005 represented approximately
8 days of average daily purchases through the year (2004: 11 days).
Auditor and the disclosure of information to the auditor
So far as each person who was a director at the date of approving
this report is aware, there is no relevant audit information, being
information needed by the auditor in connection with preparing its
report, of which the auditor is unaware. Having made enquiries of
fellow directors and the Company’s auditor, each director has taken
all the steps that he/she is obliged to take as a director in order to
make himself/herself aware of any relevant audit information and to
establish that the auditor is aware of that information.
In accordance with s. 385 of the Companies Act 1985, a resolution
is to be proposed at the Annual General Meeting for the
reappointment of Ernst & Young LLP as auditor of the Company.
A resolution will also be proposed authorising the directors to
determine the auditor’s remuneration. The Audit Committee
reviews the appointment of the auditor, the auditor’s effectiveness
and relationship with the Group, including the level of audit and
non-audit fees paid. Further details on the work of the auditor
and the Audit Committee are set out in the Audit Committee
Report on pages 62 and 63.
Annual General Meeting
The Annual General Meeting of the Company will be held on
10 May 2006 at The Barbican Centre, Silk Street, London
EC2Y 8DS at 11.00am. A separate document accompanying the
Annual Report and Accounts contains the notice convening the
Meeting and a description of the business to be conducted thereat.
By order of the Board.
Richard Whitaker
Group Company Secretary
1 March 2006
Registered Office: St. Helen’s
1 Undershaft, London EC3P 3DQ
Registered in England No. 2468686
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