The Board is collectively responsible for the long-term success of Smiths, and the directors promote the creation of sustainable shareholder value within a governance framework of systems and controls.
As Smiths is listed on the London Stock Exchange it complies with the UK Corporate Governance Code. Each year the Board reports on its activities and performance, including the extent to which it has applied the corporate governance principles, in the Corporate Governance Statement in the Annual Report, found on page 70 in the 2018 Annual Report.
The role of the Board
In order to operate effectively the Board and its Committees must be comprised of a suitable balance of tenure, skills, experience, knowledge and independence, and while the Board is collectively responsible for the success of the Group, there is a clear division of responsibilities between running the Board and the executive responsibility for running the business.
The board is responsible for ensuring that risk is managed to appropriate levels, and in order to retain control over decision-making there is a schedule of matters which have been reserved for the decision of the Board. These matters include approval of:
- Group strategy, business plans and budgets
- Half-yearly financial reports and the Annual Report and Accounts
- Acquisition or divestment of significant companies or businesses
- Remuneration policy for directors and other senior executives
- Changes to the structure, size and composition of the Board
- Issuance of Smiths Group plc shares.