BP 2011 Annual Report Download - page 133

BP Annual Report and Form 20-F 2011 131
Corporate governance
Corporate governance
• Oversee GCRO’s plans for expenditures and investments on major
projects or matters beyond those included within the established claims
administration processes.
• Oversee management strategy and actions to restore the group’s
reputation in the US.
Committee processes
Information and advice
The committee receives its information from the leadership of the GCRO
and external advisers. Privileged legal briefings are regularly provided by
the group general counsel and chief counsel for the GCRO, who are joined
on occasion in committee meetings by other internal and external legal
counsel.
BP’s internal audit function has conducted reviews of various
GCRO activities and processes, and these have been summarized for
the committee’s review. Primary monitoring of financial risk associated
with GCRO’s activities is undertaken by the audit committee. Safety risks
related to GCRO’s activities are monitored by the SEEAC.
Training and visits
The high frequency of meetings in 2011 has facilitated the committee’s
understanding of the important issues and numerous interdependencies.
Three of these meetings were held in the US and were of extended
duration, providing the opportunity for the committee to interact with
members of the GCRO leadership team.
Committee activities
The committee’s activities have included the following:
• Legal: legal updates from the chief counsel to the GCRO have formed
a significant part of the committee’s agenda, given the breadth and
pace of activities. The committee has overseen the GCRO’s integrated
legal approach, which incorporates all government, civil and criminal
investigations, the Multi-District Litigation, the Natural Resource Damage
Assessment process, and legal aspects of the claims processes. The
committee has overseen the company’s preparation for trial, as well as
the settlements entered into with the other working interest owners
in the Macondo well and with some sub-contractors working on the
development. The committee has continued to monitor engagement
with other responsible parties and contractors.
• Claims: the committee has monitored the status of claims from
individuals and businesses administered by the independent Gulf Coast
Claims Facility; and the status of claims from government entities, which
continue to be administered by BP. Assessments of potential future
claims for provisioning purposes are reviewed by the audit committee.
• Remediation: the committee has received regular updates on the
progress of clean-up and remediation activities. The committee also
monitored discussions with Natural Resource Trustees, with whom
agreement was reached on early restoration projects.
• GCRO controls: the committee oversaw the continued development
of financial controls underpinning the breadth of the GCRO’s complex
tasks. The audit committee remains the primary forum for the oversight
of these controls and associated audits.
Remuneration committee report
The report of the remuneration committee is contained in the Directors’
remuneration report on pages 139 to 151.