Cathay Pacific 2006 Annual Report Download - page 41

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Detailed control guidelines have been set and made
available to all employees of the Company regarding
handling and dissemination of corporate data which is
price sensitive.
Systems and procedures are in place to identify,
control and report on major risks, including business,
safety, legal, financial, environmental and reputational
risks. Exposures to these risks are monitored by the
Board with the assistance of various committees and
senior management.
The Board is responsible for the system of internal
control and for reviewing its effectiveness. For the
year under review, the Board considered that the
Company’s internal control system is adequate and
effective and the Company has complied with the
code provisions on internal control of the CG Code.
External Auditors
The external auditors are primarily responsible
for auditing and reporting on the annual financial
statements. In 2006 the total remuneration paid
to the external auditors was HK$10 million, being
HK$8 million for audit and HK$2 million for tax advice.
Airline Safety Review Committee
The Airline Safety Review Committee meets monthly
to review the Company’s exposure to operational
risk. It reviews the work of the Cabin Safety Review
Committee, the Operational Ramp Safety Committee
and the Engineering Mandatory Occurrence Report
Meeting. It is chaired by the Head of Corporate Safety
and comprises Directors and senior management
of all operational departments as well as senior
management from the ground handling company,
HAS, and the aircraft maintenance company, HAECO.
Investor Relations
The Company continues to enhance relationships
and communication with its investors. Extensive
information about the Company’s performance and
activities is provided in the Annual Report and the
Interim Report which are sent to shareholders. Regular
dialogue with institutional investors and analysts
is in place to keep them abreast of the Company’s
development. Inquiries from investors are dealt with in
an informative and timely manner. All shareholders are
encouraged to attend the annual general meeting to
discuss matters relating to the Company. Any inquiries
from shareholders can be addressed to the Corporate
Communication Department whose contact details are
given on page 96.
In order to promote effective communication,
the Company maintains its website at
www.cathaypacific.com on which financial
and other information relating to the Company
and its business is disclosed.
Shareholders may request an extraordinary general
meeting to be convened in accordance with Section
113 of the Companies Ordinance.
39
Cathay Pacific Airways Limited Annual Report 2006
Corporate Governance