Cathay Pacific 2015 Annual Report Download - page 49

Annual Report 2015
47
Auditors’ Independence
Independence of the auditors is of critical importance to the
Audit Committee, the Board and shareholders. The auditors
write annually to the members of the Audit Committee
confirming that they are independent accountants within
the meaning of Section 290 of the Code of Ethics for
Professional Accountants of the Hong Kong Institute of
Certified Public Accountants and that they are not aware of
any matters which may reasonably be thought to bear on
their independence. The Audit Committee assesses the
independence of the auditors by considering and
discussing each such letter (and having regard to the fees
payable to the auditors for audit and non-audit work and
the nature of the non-audit work) at a meeting of the
Audit Committee.
Provision of Non-audit Services
In deciding whether the auditors should provide non-audit
services the following key principles are considered:
• the auditors should not audit their own firm’s work
• the auditors should not make management decisions
• the auditors’ independence should not be impaired
• quality of service.
In addition, any services which may be considered to be in
conflict with the role of the auditors must be submitted to
the Audit Committee for approval prior to engagement,
regardless of the amounts involved.
In 2015 the total remuneration paid to the external auditors
was HK$23 million, being HK$14 million for audit, HK$8
million for tax advice and HK$1 million for other
professional services.
Inside Information
With respect to procedures and internal controls for
the handling and dissemination of inside information,
the Company:
• is required to disclose inside information as soon as
reasonably practicable in accordance with the Securities
and Futures Ordinance and the Listing Rules
• conducts its affairs with close regard to the “Guidelines
on Disclosure of Inside Information” issued by the
Securities and Futures Commission
• has included in its Corporate Code of Conduct a strict
prohibition on the unauthorised use of confidential or
inside information
• ensures, through its own internal reporting processes
and the consideration of their outcome by senior
management, the appropriate handling and
dissemination of inside information.
Airline Safety Review Committee
The Airline Safety Review Committee meets monthly to
review the Company’s exposure to operational risk. It
reviews the work of the Cabin Safety Review Committee, the
Operational Ramp Safety Committee and the Engineering
Mandatory Occurrence Report Meeting. It is chaired by the
General Manager Group Safety & Security and comprises
Directors and senior management of all operational
departments as well as senior management from the
ground handling company, HAS, and the aircraft
maintenance company, HAECO.
Shareholders
Communication with Shareholders and Investors
The Board and senior management recognise their
responsibility to represent the interests of all shareholders
and to maximise shareholder value. Communication with
shareholders and accountability to shareholders is a high
priority of the Company.
The methods used to communicate with shareholders
include the following:
• The Finance Director makes himself available for
meetings with major shareholders, investors and
analysts over two-month periods immediately after the
announcement of the interim and annual results and at
certain other times during the year. In addition, the
Finance Director attended regular meetings with
analysts and investors in Hong Kong, analyst briefings,
investor group briefings, overseas roadshows and
investor conferences during the year.
Corporate Governance Report