One of the key facets of our
social responsibility system is the corporate governance structure.
Our system of corporate governance is based on transparency,
equity and efficiency focusing on the need for consistent
progress of the Company, and with a view to laying a solid
foundation for management and oversight.
Although government intervention in the form of prescriptive
legislation has not been forthcoming, the Company has endeavoured
to build a corporate governance practice based on OECD guidelines,
the Code of Best Practice on corporate governance by the Insititute
of Chartered Accountants of Sri Lanka, and the combined code
on Corporate Governance, UK.
The environment in which our Company has to operate today
is increasingly international, complex and pressured. Under
the circumstances SLT’s objective has been to put in
place an effective system of checks and balances that govern
the relationship between the shareholders and the Board of
Directors on the one hand and the executive management and
the Board of Directors on the other.
The Board
The Board of Directors consists of one Executive Director
who is the CEO and nine Non-Executive Directors. The Board
assumes responsibility for the stewardship of SLT and is fully
accountable to the shareholders. The profiles of the Directors
are given on page 4 and 5 of this Report. Board responsibilities
are discharged directly or through the various committees.
There have been eight regular meetings of the Board during
2003.
The Board procedures have been established to deal with matters
which often have to be dealt with urgency, often between regular
Board meetings. Telephone conference meetings are held in
which as many Directors as possible could participate.
Matters reserved for the Board, a precedent to good governance
is firmly laid down and closely followed by the Board. All
Directors are subject to election by the shareholders at the
first Annual General Meeting except CEO and the Chairman,
after their appointment, and to re-election thereafter at
intervals of no more than three years. The Directors receive
accurate, timely and clear information. The Management provides
such information and wherever necessary Directors seek clarification
or amplification.
The positions of Chairman and CEO are separate providing for
greater transparency in decision making. The CEO enjoys a
clear remit and specific responsibilities. With a view to
allowing flexibility, which is an important need considering
the pressured environment the Company has to operate, the
Board wherever necessary delegates authority to the CEO.
The Annual Business Plan which includes the capital expenditure
budgets are approved by the Board in advance and reviewed
periodically for necessary corrective action.The Board ensures
the presentation of balanced and understandable assessment
in all interim and other price sensitive and public reports
to the regulators as well as information required to be presented
in accordance with statutory requirements.
The Board has adopted systems to ensure checks and controls.
It also ensures that the requisite technology, systems, procedures,
and strategic planning are in place. Considerable care is
taken to make sure that proper audit controls, both internal
and external are in place and that these are controlled by
persons who are independent and competent.
Corporate Management Team
The day-to-day operations are carried out by a Corporate Management
Team headed by the Chief Executive Officer. While the Board
frames the policy and strategic objectives, autonomy is extended
to the Management Team which operates within the broad parameters
in accordance with the highest professional standards.
Board Committees
The Remuneration Committee comprises of the Chairman and the
CEO who decides on the remuneration of the Senior Management
which is performance related.
Investor Relations
The Company maintains a healthy dialogue with major shareholders,
analysts and brokers through regular meetings in order to
develop an understanding of the views of the major shareholders
about the Company. |