Holiday Inn 2006 Annual Report Download - page 27

Directors’ report
Substantial shareholdings
As at 19 February 2007, the Company has been notified by
shareholders of the following substantial interests (3% or more)
in its ordinary share capital:
Ellerman Corporation Limited 5%
Lloyds TSB Group Plc 5%
Legal & General Group Plc 3.34%
Directors
Details of Directors who served on the Board during the year are
shown on page 27. Details of the share interests of Directors
who were on the Board at the year end are shown on page 38.
No changes to these interests occurred between the year end and
the date of this report.
During the year, IHG has maintained cover for its Directors and
officers and those of its subsidiary companies under a directors’
and officers’ liability insurance policy, as permitted by Section
309(5) of the Companies Act 1985.
Employees
IHG employed an average of 11,456 people worldwide in the year
ended 31 December 2006.
Further information regarding the Group’s employment policies,
including its obligations under equal opportunities legislation, its
commitment to employee communications and its approach towards
staff development can be found on pages 16 and 17 of the OFR.
Ethics and business conduct
Among the Group’s core values is the concept that all employees
should have the courage and conviction to do what is right. During
2006, following a review of existing internal policies and guidelines,
the Board adopted a new global Code of Ethics and Business
Conduct. This consolidates and clarifies expected standards of
behaviour and communicates the ethical values of the Group. The
Code is applicable to all employees and is available on the
Company’s website www.ihg.com/corporate
IHG believes that Corporate Social Responsibility (CSR) makes sound
business sense, and seeks to embed good practice throughout the
Group. Details of the Group’s charitable, community, environmental
and socially responsible activities and policies are provided on
pages 24 to 27 of the Annual Review and Summary Financial
Statement 2006. IHG’s approach towards CSR is also referred to
on page 17 of the OFR and published in more detail on the website
www.ihg.com/corporate
The Group made no political donations during the year and
proposes to maintain its policy of not making such payments.
Charitable donations
During the year the Group donated £653,000 in support of
community initiatives and charitable causes. In addition to these
cash contributions, employees are encouraged to give their time
and skills to a variety of causes and IHG makes donations in kind,
such as hotel accommodation. Taking these contributions into
account, total donations in 2006 are estimated at £925,000.
Financial risk management
The Group’s financial risk management objectives and policies,
including its use of financial instruments, are set out on pages 15
and 16 of the OFR and in notes 21 and 22 to the Group financial
statements on pages 70 to 72.
Policy on payment of suppliers
InterContinental Hotels Group PLC is a holding company and has
no trade creditors. Group companies aim to adhere to the payment
terms agreed with suppliers. Payments are contingent on the
supplier providing goods or services to the required standard, and
purchasing is sometimes coordinated between Group undertakings.
Going concern
The financial statements which appear on pages 44 to 83 have been
prepared on a going concern basis as, after making appropriate
enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future.
Auditors
The Directors who held office as at the date of approval of this
report confirm that they have taken steps to make themselves
aware of relevant audit information. None of the Directors is aware
of any relevant audit information which has not been disclosed
to the auditors.
Ernst & Young LLP have expressed their willingness to continue
in office as auditors of the Company and their reappointment will
be put to members at the Annual General Meeting.
Annual General Meeting
The Notice convening the Annual General Meeting to be held at
11.00am on Friday, 1 June 2007 is contained in a circular sent
to shareholders with this Report.
By order of the Board
Richard Winter
Company Secretary
19 February 2007
IHG The Board, senior management and their responsibilities 25