Telstra 2003 Annual Report Download - page 35

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Each of these deeds provides an indemnity on substantially the
same terms as the indemnity provided in the constitution in favour
of officers. The indemnity in favour of directors also gives directors
a right of access to board papers and requires Telstra to maintain
insurance cover for the directors.
The indemnity in favour of employees relating to Telstra Sale
Schemes is confined to liabilities incurred as an employee in
connection with the formulation, entering into or carrying out,
of a Telstra Sale Scheme.
Directors’and officers’insurance
Telstra maintains a directors’ and officers’ insurance policy that,
subject to some exceptions, provides worldwide insurance cover to
past, present or future directors, secretaries or executive officers of
the Telstra Entity and its subsidiaries. The directors’ and officers’
insurance policy prohibits disclosure of the premium payable under
the policy and the nature of the liabilities insured.
Environmental regulation and performance
Performance in relation to particular and significant
environmental legislation
Telstra’s operations are subject to some significant environmental
regulation under Commonwealth, State and Territory law,
particularly with regard to:
•the impact of the rollout of telecommunications infrastructure;
•site contamination; and
•waste management.
Telstra has established procedures to monitor and manage
compliance with existing environmental regulations and new
regulations as they come into force.
The directors are not aware of any significant breaches of
environmental regulation during the financial year.
Legal and regulatory compliance
Telstra is committed to conducting its business in compliance with
all of its legal and regulatory obligations. Compliance with these
obligations is not just a legal requirement but is integral to Telstra’s
commitment to its customers, employees, shareholders and the
community.
Whilst we have always had in place systems to ensure compliance
with our legal and regulatory obligations, we now have a more
formal compliance program in place. Under this compliance
program each business unit has a plan setting out how they intend
to achieve legal and regulatory compliance in their operations
through initiatives such as training, dissemination of information
and monitoring of compliance outcomes. A Legal and Regulatory
Compliance and Risk Report is also prepared for the Audit
Committee every quarter.
This report provides the Audit Committee with an oversight of the
initiatives being taken to achieve legal and regulatory compliance
and with information on the significant legal cases in which Telstra
is currently involved.
Tax consolidation
Effective 1 July 2002, for the purposes of income taxation, Telstra
Corporation Limited and its Australian resident wholly owned
subsidiaries have formed a tax consolidation group. The entities
within the tax consolidated group have entered into a tax sharing
agreement. The terms of this agreement specify the methods of
allocating any tax liability in the event of default by the Telstra
Entity on its group payment obligations and the treatment where
a subsidiary member exits the group. The tax liability of the group
otherwise remains with the Telstra Entity.
Rounding of amounts
The Telstra Entity is a company of the kind referred to in the
Australian Securities and Investments Commission class order
98/100, dated 10 July 1998 and issued pursuant to section 341(1) of
the Corporations Act 2001. As a result, amounts in this report and
the accompanying financial report have been rounded to the
nearest million dollars, except where otherwise indicated.
This report is made in accordance with a resolution of the directors.
Robert C Mansfield Ziggy Switkowski
Chairman Chief Executive Officer
and Managing Director
28 August 2003