Lenovo 2015 Annual Report Download - page 46

44 Lenovo Group Limited 2014/15 Annual Report
CORPORATE GOVERNANCE REPORT
CORPORATE GOVERNANCE PRINCIPLES AND STRUCTURE
The board of directors (the “Board”) and the management of Lenovo Group Limited (the “Company”) strive to
attain and uphold a high standard of corporate governance and to maintain sound and well-established corporate
governance practices for the interest sake of shareholders and other stakeholders including customers, suppliers,
employees and the general public. The Company abides strictly by the governing laws and regulations of the
jurisdictions where it operates and observes the applicable guidelines and rules issued by regulatory authorities. It
regularly undertakes review of its corporate governance system to ensure it is in line with international and local best
practices.
Throughout the year ended March 31, 2015, the Company has complied with the code provisions of the Corporate
Governance Code and Corporate Governance Report (the “CG Code”) set out in Appendix 14 to the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) (the
“Listing Rules”), and where appropriate, met the recommended best practices in the CG Code, save for the
exception which is explained below.
Code Provision A.2.1 (Separate the roles of Chairman and Chief Executive Officer)
Since November 3, 2011, Mr. Yang Yuanqing (“Mr. Yang”) has been performing both the roles as the chairman of the
Board (the “Chairman”) and chief executive officer of the Company (the “CEO”). The Board has recently reviewed
the organization human resources planning of the Company and is of the opinion that it is appropriate and in the best
interests of the Company at the present stage for Mr. Yang to continue to hold both the positions as it would help to
maintain the continuity of the strategy execution and stability of the operations of the Company. The Board comprising a
vast majority of independent non-executive directors meets regularly on a quarterly basis to review the operations of the
Company led by Mr. Yang.
The Board also appointed Mr. William O. Grabe (“Mr. Grabe”) as the lead independent director (the “Lead Independent
Director”) with broad authority and responsibility. Among other responsibilities, the Lead Independent Director will chair
the Nomination and Governance Committee meeting and/or the Board meeting when considering (i) the combined roles
of Chairman and CEO; and (ii) assessment of the performance of Chairman and/or CEO. The Lead Independent Director
will also call and chair meeting(s) with all independent non-executive directors without management and executive
director present at least once a year on such matters as are deemed appropriate. Accordingly, the Board believes that
the current Board structure with combined roles of Chairman and CEO, the appointment of Lead Independent Director
and a vast majority of independent non-executive directors will provide an effective balance on power and authorizations
between the Board and the management of the Company.
Apart from the foregoing, the Company met the recommended best practices in the CG Code as disclosed in
the respective sections of this report. Particularly, the Company published quarterly financial results and business
reviews in addition to interim and annual results. Quarterly financial results enhanced the shareholders’ ability to
assess the performance, financial position and prospects of the Company. The quarterly financial results were also
prepared using the accounting standards consistent with the policies applied to the interim and annual financial
results.