BT 2000 Annual Report Download - page 45

Report of the Directors
44 Annual report and Form 20-F
The directors submit their report and the audited ¢nancial
statements of the company, British Telecommunications
plc, and the group, which includes its subsidiary
undertakings, for the 2000 ¢nancial year.
Introduction
The business review on pages 8 to 22, our commitment to
society on pages 23 and 24, the ¢nancial review on pages
27 to 41, the discussion on corporate governance on pages
45 to 47 and the report on directors' remuneration on pages
48 to 56 form part of this report. The audited ¢nancial
statements are presented on pages 59 to 110 .
Principal activity
The group's principal activity is the supply of
communication services and equipment. In the year, 95%
of group turnover arose from operations in the UK.
Directors
The names and biographical details of the directors of the
company are given on pages 42 and 43. All served
throughout the ¢nancial year, with the exception of June de
Moller and Louis Hughes who joined the Board on
1 September 1999 and 1 January 2000, respectively.
In accordance with the articles of association, June de
Moller and Louis Hughes, having been appointed to the
Board since the last annual general meeting, retire at the
forthcoming annual general meeting and will be proposed
for election. Helen Alexander, Neville Isdell, Lord Marshall
and Keith Oates retire by rotation and will be proposed for
re-election. Details of these directors' contracts of
appointment are included in the discussion on corporate
governance on page 45 and the report on directors'
remuneration on page 56.
Substantial shareholdings
At 24 May 2000, the company had received no noti¢cation
under Part Vl of the Companies Act 1985 in respect of
holdings of 3% or more of the company's issued ordinary
share capital.
Interest of management in certain transactions
During and at the end of the 2000 ¢nancial year, none of
the company's directors was materially interested in any
material transaction in relation to the group's business and
none is materially interested in any presently proposed
material transactions.
Policy on the payment of suppliers
BT's policy is to use its purchasing power fairly and to
pay promptly and as agreed.
BT has a variety of payment terms with its suppliers.
The terms for payments for purchases under major
contracts are settled when agreeing the other terms
negotiated with the individual suppliers. It is BT's policy
to make payments for other purchases within 30 working
days of the invoice date, provided that the relevant invoice
is presented to the company in a timely fashion and is
complete. BT's payment terms are printed on the
company's standard purchase order forms or, where
appropriate, speci¢ed in individual contracts agreed with
the supplier. The ratio, expressed in days, between the
amounts invoiced to the company by its suppliers in the
2000 ¢nancial year and the amounts owed to its trade
creditors at the end of the year was 23 days.
Auditors
A resolution to reappoint PricewaterhouseCoopers as
auditors of the company and authorise the directors to
settle their remuneration will be proposed at the annual
general meeting.
Authority to purchase shares
The authority for the company to purchase 647 million of
its shares, representing 10% of the issued share capital, in
the market expires on 13 October 2000. This authority was
not used during the year and shareholders will be asked to
give a similar authority at the annual general meeting.
Annual general meeting resolutions
The resolutions to be proposed at the annual general
meeting to be held on 12 July 2000, together with
explanatory notes, appear in the separate Notice of Annual
General Meeting sent to all shareholders.
By order of the Board
C R Green
Secretary
24 May 2000
Registered of®ce: 81 Newgate Street, London EC1A 7AJ
Registered in England No. 1800000