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Lenovo Group Limited • Annual Report 2007/08 35
The following chart sets out the Company’s corporate governance framework:
Strategy
Committee
Governance
Committee
Audit
Committee
Compensation
Committee
Board of Directors
Management
Board Committees
The Board has established four board committees (“Board Committees”) with defined terms of reference (available
upon written request to the Company Secretary); they are Audit Committee, Compensation Committee, Strategy
Committee and Governance Committee. The terms of reference of the Audit Committee and the Compensation
Committee are on no less exacting terms than those set out in the CG Code. Should the need arise, the Board
will authorize an independent board committee comprising all the independent non-executive directors to review,
approve and monitor connected transactions (including the continuing connected transactions) that should be
approved by the Board. Minutes of meetings are circulated to members of the relevant Board Committee for
comment and are open for inspection by any director. The following lists out the membership, responsibilities and
the summary of work that each Board Committee performed on behalf of the Board during the financial year:
Membership of Audit Committee (defined as “Committee” in this section)
All Committee members are non-executive directors, the majority of whom including the Committee Chairman
are independent non-executive directors. The members during the year were Mr. John W. Barter III (Committee
Chairman), Professor Woo Chia-Wei, Mr. Ting Lee Sen, Mr. Shan Weijian and Ms. Ma Xuezheng. The Committee
members possess diversified industry experience and the Chairman has the accounting or related financial
management expertise.
Responsibilities and summary of work
The Committee is responsible for assisting the Board in providing an independent review of the financial
statements and internal control system. It acts in an advisory capacity and makes recommendations to the
Board. The Committee met with external auditors and management of the finance and internal audit functions
of the Company at least four times a year at quarterly interval and is authorized to obtain outside independent
professional advice to support its function.
The Committee met four times during the year and has reviewed and/or approved items including:
• TheaccountingprinciplesandpracticesadoptedbytheGroup
• Thefinancialreportingmattersincludingthequarterly,interimandannualfinancialstatements,
announcements, interim report and annual report before submission to the Board for approval
• 2006/07internalauditandbusinesscontrolreviewand2007/08internalauditreportoftheGroup
• 2006/07externalauditprogressreportand2007/08auditplanoftheGroup
• ThecontinuingconnectedtransactionsoftheGroup
• Recommendationonre-appointmentofexternalauditors