Barclays 2006 Annual Report Download - page 120

Barclays monitors its health and safety performance using a variety of
measurements on a monthly basis and the Board HR and Remuneration
Committee receives annual reports on health and safety performance
from the Human Resources Director. As part of its Partnership
Agreement with trade union Amicus in the UK, Barclays funds seven
full time Health and Safety Representatives.
Creditors’ Payment Policy
Barclays values its suppliers and acknowledges the importance of
paying invoices, especially those of small businesses, promptly.
Normal policy is to pay all small business purchases within 30 days.
It is the Group’s practice to agree terms with suppliers when entering
into contracts. We negotiate with suppliers on an individual basis and
meet our obligations accordingly. The Group does not follow any
specific published code or standard on payment practice.
Paragraph 12(3) of Schedule 7 of the Companies Act 1985 requires
disclosure of trade creditor payment days. Disclosure is required by
the Company, rather than the Group. The Group’s principal trading
subsidiary in the UK is Barclays Bank PLC, the accounts for which are
prepared in accordance with International Financial Reporting
Standards. The components for the trade creditor calculation are not
easily identified. However, by identifying as closely as possible the
components that would be required if Schedule 4 of the Companies Act
applied, the trade creditor payment days for Barclays Bank PLC for 2006
were 28 days (2005: 35 days). This is an arithmetical calculation and
does not necessarily reflect our practice, which is described above, nor
the experience of any individual creditor.
Financial Instruments
The Group’s financial risk management objectives and policies,
including the policy for hedging each major type of forecasted
transaction for which hedge accounting is used, and the exposure to
market risk, credit risk and liquidity risk are set out in pages 67 to 94
under the headings, ‘Barclays approach to risk management’, ‘Credit
Risk Management’, ‘Market risk management’, ‘Capital and liquidity risk
management’ and ‘Derivatives’ and in Note 14 and Notes 52 to 57 to
the accounts.
Events after the Balance Sheet Date
On 19th January 2007 Barclays announced that it entered into an
agreement to purchase EquiFirst Corporation, the non-prime
mortgage origination business of Regions Financial Corporation, for
a consideration of approximately US$225m. Completion, which is
subject to receipt of the required licences and applicable regulatory
approval, as well as a post-closing adjustment based on EquiFirst’s
balance sheet at the actual completion date, is expected in the first half
of 2007.
On 8th February 2007 Barclays completed the acquisition of
Indexchange Investment AG from Bayerische Hypo-und Vereinsbank
for a consideration of approximately ¤240m.
The Auditors
The Board Audit Committee reviews the appointment of the external
auditors, as well as their relationship with the Group, including monitoring
the Group’s use of the auditors for non-audit services and the balance
of audit and non-audit fees paid to the auditors. More details on this can
be found on pages 121 and 122 and Note 9 to the accounts. Having
reviewed the independence and effectiveness of the external auditors,
the Committee has recommended to the Board that the existing auditors,
PricewaterhouseCoopers LLP, be reappointed. PricewaterhouseCoopers
LLP have signified their willingness to continue in office and ordinary
resolutions reappointing them as auditors and authorising the Directors
to set their remuneration will be proposed at the 2007 AGM.
So far as each of the Directors are aware, there is no relevant audit
information of which the Company’s auditors are unaware. Each of the
Directors has taken all the steps that he or she ought to have taken as a
Director in order to make himself or herself aware of any relevant audit
information and to establish that the Company’s auditors are aware of
that information. For these purposes, ‘relevant audit information’ means
information needed by the Company’s auditors in connection with
preparing their report.
The Annual General Meeting
The Barclays PLC AGM will be held at The Queen Elizabeth II Conference
Centre on Thursday 26th April 2007. The Notice of Meeting is included in
a separate document sent to shareholders with this report. A summary
of the resolutions being proposed at the 2007 AGM is set out below:
Ordinary Resolutions
•To receive the Directors’ and Auditors’ Reports and the Audited
Accounts for the year ended 31st December 2006.
•To approve the Remuneration report for the year ended
31st December 2006.
•To re-elect the following Directors:
– Marcus Agius;
– Frits Seegers;
– Chris Lucas;
– Stephen Russell;
– Leigh Clifford;
– Sir Andrew Likierman;
– John Varley; and
– Sir Nigel Rudd.
•To reappoint PricewaterhouseCoopers LLP as auditors of
the Company.
•To authorise the Directors to set the remuneration of the auditors.
•To authorise Barclays Bank PLC to make political donations.
•To renew the authority given to the Directors to allot securities.
Special Resolutions
•To renew the authority given to the Directors to allot securities for
cash other than on a pro-rata basis to shareholders and to sell
treasury shares.
•To renew the Company’s authority to purchase its own shares.
•To adopt new Articles of Association to allow the Company to take
advantage of the new provisions of the Companies Act 2006 which
enable companies to communicate electronically or via a website
with all shareholders.
This is only a summary of the business to be transacted at the meeting
and you should refer to the Notice of Meeting for full details.
By order of the Board
Lawrence Dickinson
Company Secretary
8th March 2007
Directors’ report
Barclays PLC
Annual Report 2006
116