Lenovo 2015 Annual Report Download - page 53

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2014/15 Annual Report Lenovo Group Limited
The Company agreed that the independence of directors is an important principle of the Company. In line with
the best practices on corporate governance, the Board adopted the principle that each term of an independent
non-executive director of the Company shall not be more than three years and shall, subject to re-election by
shareholders at any subsequent annual general meeting of the Company, be renewable for additional three-year
terms up to a total of nine years. At the recommendation of the Nomination and Governance Committee, the Board
may invite an independent non-executive director to serve for an additional three-year term extending up to a total of
twelve years subject to re-election at any subsequent annual general meeting of the Company. The Company will set
out in the document accompanying the notice of the forthcoming annual general meeting the reason why the Board
considers the individual continues to be independent and the recommendation to shareholders to vote in favour of
the re-election of the independent non-executive director.
Independence
The independent non-executive directors do not participate in the day-to-day management of the Company and do
not engage in any business dealing or other relationships with the Group (other than in situations permitted by the
applicable regulations) in order to ensure that they remain truly capable of exercising independent judgement and
act in the best interests of the Company and its shareholders.
Each of the independent non-executive directors has made a confirmation of independence pursuant to rule 3.13
of the Listing Rules. On May 20, 2015, the Nomination and Governance Committee conducted an annual review of
the independence of all independent non-executive directors of the Company for the year ended March 31, 2015.
Having taken into account the factors as set out in rule 3.13 of the Listing Rules in assessing the independence
of independent non-executive directors, the Nomination and Governance Committee (with the relevant committee
member abstaining from voting on the resolution concerning his own independence) concluded that all of the
independent non-executive directors satisfied the criteria of independence as set out in the Listing Rules.
In addition, the Nomination and Governance Committee affirmed that all independent non-executive directors of the
Company provided a strong independent element on the Board, were free from any business or other relationship
which could materially interfere with the exercise of their judgement, and remained independent for the year ended
March 31, 2015.
Conflicts of interest
Directors have a statutory duty to avoid situations in which they have or may have interests that conflict with those
of the Company. The Board has a set procedure and guidance to deal with the actual or potential conflicts of
interest of directors as follows:
• The Board deals with each appointment on its individual merit and takes into consideration all the circumstances.
• Actual and potential conflicts of interest are notified to the Board before they arise.
• Prior to taking an additional responsibilities or external appointments, directors are obliged to ensure that they
will be able to meet the time commitment expected of them in their role at the Company and do not have any
potential conflicts that may arise when take up a position with another company.
• Decisions regarding transactions with directors and their related parties are always dealt with by other directors,
such as matter regarding the remuneration of executive director is handled by the Compensation Committee.
All potential conflicts of interest will be recorded, which are reviewed on an annual basis by the Nomination and
Governance Committee to ensure that the procedures are working effectively.