National Grid 2010 Annual Report Download - page 29

National Grid Gas plc Annual Report and Accounts 2009/10 27
Directors’ Report
for the year ended 31 March 2010
In accordance with the requirements of the Companies Act
2006 and UK Listing Authority’s Listing, Disclosure and
Transparency Rules, the following sections describe the matters
that are required for inclusion in the Directors’ Report and were
approved by the Board. Further details of matters required to be
included in the Directors’ Report are incorporated by reference
into this report, as detailed below.
Directors
The Directors serving as at the date of this report were:
Malcolm Cooper Appointed June 2007
Mark Fairbairn Appointed June 2003
Stuart Humphreys Appointed July 2008
Paul Whittaker Appointed June 2007
Adam Wiltshire Appointed June 2006
Nick Winser Appointed July 2003
Directors’ and Officers’ liability insurance cover is arranged and
qualifying third party indemnities are in place for each Director.
Principal activities and business review
A full description of the Company’s principal activities,
businesses and principal risks and uncertainties is contained in
the Operating and Financial Review on pages 1 to 26, which
are incorporated by reference into this report.
Material interests in shares
National Grid Gas plc is a wholly owned subsidiary undertaking
of National Grid Gas Holdings Limited. The ultimate parent
company of National Grid Gas plc is National Grid plc.
Dividends
During the year, interim dividends totalling £300 million were
paid (2008/09: £300 million interim dividend). The Directors
have not proposed a final dividend.
Donations
During 2009/10, some £2.6 million (2008/09: £2.7 million) was
invested in support of community initiatives and relationships in
the UK. There were no direct charitable donations for 2009/10
(2008/09: £0.5 million).
No political donations were made in the UK and EU, including
donations as defined for the purposes of the Political Parties,
Elections and Referendums Act 2000.
Research and development
Expenditure on research and development was £10 million
during the year (2008/09: £4 million).
Financial instruments
Details on the use of financial instruments and financial risk
management are included on pages 18 to 22 in the Operating
and Financial Review.
Future developments
Details of future developments are contained in the Operating
and Financial Review.
Employee involvement
NGG, as a part of National Grid, has well established and
effective arrangements through electronic mail, intranet and in-
house publications and briefing meetings, at each business
location and company wide, for communication and
consultation with both employees and trade union
representatives, and for communication of performance,
strategy and operating model, together with significant business
issues. NGG recognises the importance of aligning employee
and shareholder interests, and is committed to employee share
ownership through the National Grid plc Share Incentive Plan
and Sharesave scheme, which are open to all employees.
Policy and practice on payment of creditors
It is NGG’s policy to include in contracts or other agreements,
terms of payment with suppliers. Once agreed, NGG aims to
abide by these terms of payment. The average creditor
payment period at 31 March 2010 was 17 days (16 days at 31
March 2009).
Audit information
Having made the requisite enquiries, so far as the Directors in
office at the date of the signing of this report are aware, there is
no relevant audit information of which the auditors are unaware
and each Director has taken all reasonable steps to make
themselves aware of any relevant audit information and to
establish that the auditors are aware of that information.
Annual General Meeting
Notice of the NGG’s Annual General Meeting for 2010 will be
issued separately to shareholders.
On behalf of the Board
Adam Wiltshire
Director
2 July 2010
National Grid Gas plc, 1-3 Strand, London WC2N 5EH
Registered in England and Wales Number 2006000