Vodafone 2013 Annual Report Download - page 67

The Chairman has overall responsibility for ensuring that there
is effective communication with investors, and that the Board
understands the views of major shareholders on matters such
as governance and strategy, and he makes himself available to meet
shareholders for this purpose. The Senior Independent Director and
other members of the Board are also available to meet major investors
on request. The Board receives a regular report from the Investor
Relations team. Feedback from meetings held between executive
management, or the Investor Relations team, and institutional
shareholders is also communicated to the Board.
What happens at our AGM?
Who attends?
a All of our directors.
a Executive Committee members.
a Our shareholders.
What happens?
a A summary presentation of results is given before the Chairman deals
with the formal business.
a All shareholders present can question the Chairman, the Chairmen
of the Committees and the rest of the Board both during the meeting
and informally afterwards.
a The Board encourages participation of investors, including individual
investors, at the AGM.
AGM broadcast
a The AGM is broadcast live on our website at vodafone.com/agm.
a A recording can subsequently be viewed on our website.
Resolutions
a Voting on all resolutions at the AGM is on a poll. The proxy votes
cast, including details of votes withheld, are disclosed to those
in attendance at the meeting and the results are published on our
website and announced via the Regulatory News Service.
A summary of our share and control structures is set out in “Shareholder
information” on pages 166 to 173.
Internal control and risk management
The Board has overall responsibility for the system of internal control.
Asound system of internal control is designed to manage rather than
eliminate the risk of failure to achieve business objectives and can
only provide reasonable and not absolute assurance against material
misstatement or loss.
The Board has established procedures that implement in full the
Turnbull Guidance “Internal Control: Revised Guidance for Directors
onthe Combined Code” for the year under review and to the date of this
annual report. These procedures, which are subject to regular review,
provide an ongoing process for identifying, evaluating and managing
the signicant risks we face. See page 84 for management’s report
on internal control over nancialreporting.
Monitoring and review activities
There are clear processes for monitoring the system of internal control
and reporting any signicant control failings or weaknesses together
with details of corrective action. These include:
a the Chief Executive and Chief Financial Ofcer of each Group
company formally certifying the operation of their control systems
each year and highlighting any weaknesses. These results are
reviewed by regional management, the Audit and Risk Committee,
and the Board;
a regional chief executives certifying compliance with high risk policies
in their companies, with Group Compliance reviewing evidence
of compliance. Non-high risk policies are monitored on a self-
assessment basis;
a the Group’s Disclosure Committee reviewing the appropriateness
of disclosures and providing an annual report to the Chief Executive
and the Chief Financial Ofcer on the effectiveness of the
Group’s disclosure controls and procedures;
a maintaining “disclosure controls and procedures”, as such term
is dened in Rule 13a-15(e) of the Exchange Act, that are designed
to ensure that information required to be disclosed in reports that
we le orsubmit under the Exchange Act is recorded, processed,
summarised and reported within the time periods specied in the
SEC’s rules and forms, and that such information is accumulated
and communicated to management, including our Chief Executive
and Chief Financial Ofcer as appropriate, to allow timely decisions
regarding required disclosure; and
a the Group Internal Audit department periodically examining business
processes on a risk basis throughout the Group and reporting to the
Audit and Risk Committee.
In addition, the Board reviews any reports from the external auditor
presented to the Audit and Risk Committee and management in relation
to internal nancial controls.
Any controls and procedures, no matter how well designed and
operated, can provide only reasonable and not absolute assurance
ofachieving the desired control objectives. Management is required
toapply judgement when:
a evaluating the risks we face in achieving our objectives;
a determining the risks that are considered acceptable to bear;
a assessing the likelihood of the risks concerned materialising;
a identifying our ability to reduce the incidence and impact on the
business of risks that do materialise; and
a ensuring that the costs of operating particular controls are
proportionate to the benet.
Risk management
An overview of the Group’s framework for identifying and managing risk,
both at an operational and strategic level, isset out on page 46.
Review of effectiveness
The Board and the Audit and Risk Committee have reviewed the
effectiveness of the internal control system including nancial,
operational and compliance controls, and risk management
in accordance with the Code for the period from 1 April 2012
to 21 May 2013 (the date of this annual report). No signicant failings
orweaknesses were identied during this review. However, had there
been any such failings or weaknesses, the Board conrms that
necessary actions would have been taken to remedy them.
The directors, the Chief Executive and the Chief Financial Ofcer have
evaluated the effectiveness of the disclosure controls and procedures
and, based on that evaluation, have concluded that the disclosure
controls and procedures are effective at the end of the period covered
by this report.
65 Vodafone Group Plc
Annual Report 2013
Overview Business review Performance Governance Financials Additional information