Holiday Inn 2007 Annual Report Download - page 31

THE BOARD, SENIOR MANAGEMENT AND THEIR RESPONSIBILITIES
Directors’ report 29
Share capital
During the year, 3,512,783 new shares were issued under
employee share plans and, following the share capital
consolidation, the Company’s share capital at 31 December 2007
consisted of 294,623,308 ordinary shares of 13 29⁄47p each. There
are no special control rights or restrictions on transfer attaching
to these ordinary shares.
The Company has not utilised the authority given by shareholders
at any of its Annual General Meetings, to allot shares for cash
without offering such shares to existing shareholders.
Substantial shareholdings
As at 18 February 2008, the Company had been notified by
shareholders of the following substantial interests, representing
3% or more of its ordinary share capital:
Ellerman Corporation Limited 10%
Morgan Stanley Investment Management Limited 5.60%
Cedar Rock Capital Limited 5.07%
Legal & General Group Plc 4.09%
Lloyds TSB Group Plc 3.84%
Directors
Details of Directors who served on the Board during the year
are shown on page 31. Details of the beneficial share interests
of Directors who were on the Board at the year end are shown
on page 43. 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 the
Companies Act 2006.
The Group has provided to all of its Directors, limited indemnities
in respect of costs of defending claims against them, and
third-party liabilities. These are all qualifying third-party
indemnity provisions for the purposes of the Companies Act 2006
and are all currently in force.
There were no indemnity provisions relating to the UK pension
plan, for the benefit of the Directors of the Company, in place
during the period.
Employees
IHG directly employed an average of 10,366 people worldwide
in the year ended 31 December 2007. When the managed and
franchised estate is included, approximately 315,000 people
work for IHG’s brands across the globe.
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 9 and 10
of the Business Review.
Charitable donations
During the year, the Group donated £626,000 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 2007 are estimated at £770,000.
Political donations
The Group made no political donations during the year and
proposes to maintain its policy of not making such payments.
Financial risk management
The Group’s financial risk management objectives and policies,
including its use of financial instruments, are set out on pages
20 and 21 of the Business Review and in notes 21 and 22 to the
Group financial statements on pages 73 to 76.
A number of IHG’s banking arrangements are terminable upon
a change of control of the Company.
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 48 to 88
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, 30 May 2008 is contained in a circular sent
to shareholders with this Report.
By order of the Board
Richard Winter
Company Secretary
18 February 2008
THE BOARD, SENIOR MANAGEMENT AND THEIR RESPONSIBILITIES