Marks and Spencer 2007 Annual Report Download - page 36

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Group Directors’ report continued
as well as to the local community. Following the collapse of the
Farepak Christmas savings scheme at the end of 2006, we
replaced the lost savings of around 420 employees in full
with M&S gift vouchers. We also donated £250,000 to the
Farepak Response Fund set up to provide some compensation
for savers.
Political donations
It is our policy not to make donations for political purposes in
the UK, to donate to EU Political parties or incur EU Political
Expenditure. Accordingly neither the Company nor its
subsidiaries made any Political Donations or incurred Political
Expenditure in the financial year under review.
Under the provisions of the Political Parties, Elections and
Referendums Act 2000, shareholder authority is required for
Political Donations to be made or Political Expenditure to be
incurred by the Company or any of its subsidiaries in the EU
and disclose any such payments in the Annual report. The
legislation gives a wide definition of what constitutes Political
Donations and Political Expenditure including sponsorship,
subscriptions, payment of expenses, paid leave for employees
fulfilling public duties and support for bodies representing the
business community in policy review or reform. The Company
has therefore obtained limited authority from shareholders as
a precautionary measure to allow the Company to continue
supporting the community and such organisations without
inadvertently breaching the legislation.
At the 2006 AGM the Board obtained authority to make Political
Donations or to incur Political Expenditure in the EU (which
would not ordinarily be regarded as political donations) up to
an aggregate annual limit of £100,000 for each of the six
principal employing companies. This authority will expire in 2010.
Going concern
After making enquires, the directors have a reasonable
expectation that the Group has adequate resources to continue
in operational existence for the foreseeable future. For this
reason, they have adopted the going concern basis in preparing
the financial statements.
Auditors
Resolutions to reappoint PricewaterhouseCoopers LLP as
auditors of the Company and to authorise the Audit Committee
to determine their remuneration will be proposed at the 2007
AGM.
Annual general meeting
The Notice of the AGM to be held on 10 July 2007 is given,
together with explanatory notes, in the booklet which
accompanies this report.
By order of the Board
Graham Oakley, Group Secretary
London
21 May 2007
34 MARKS AND SPENCER GROUP PLC www.marksandspencer.com/annualreport2007