Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole.
In doing this, section 172 requires a director to have regard, amongst other matters, to the:
• likely consequences of any decisions in the long-term;
• interests of the company’s employees:
• need to foster the company’s business relationships with suppliers, customers and others;
• impact of the company’s operations on the community and environment;
• desirability of the company maintaining a reputation for high standards of business conduct;
• need to act fairly as between members of the company.
In discharging our section 172 duties, we have regard to the factors set out above. We also have regard to other factors which we consider relevant to the decision being made. Those factors, for example, include the interests and relationships with employees, customers and suppliers. We acknowledge that every decision we make will not necessarily result in a positive outcome for all of our stake holders. By considering the Company’s purpose, vision and values together with its strategic priorities and having a process in place for decision – making, we do, however, aim to make sure that our decisions are consistent and predictable.
The Company delegates authority for day-to-day management of the Company to senior management of the company and then engage management in setting, approving and overseeing the execution of the business strategy and related policies. The Company delegates to senior management to review the Company’s financial and operational performance, risk and compliance, and health and safety matters. The views and the impact of the Company’s activities on the Company’s stakeholders (including its customers and suppliers) are an important consideration for us when making relevant decisions.
During the period the Company received information to help it understanding the interests and views of the Company’s key stakeholders and other relevant factors when making decisions. This information was distributed in a range of different formats including in reports and presentations on our financial and operational performance, non-financial KPIs, risk, environmental, social and corporate governance matters and the outcomes of specific pieces of engagement. As a result of this, the Company has had an overview of engagement with stakeholders and other relevant factors which allows it to understand the nature of the stakeholders’ concerns and to comply with its section 172 duty to promote success of the company.
Fondy Ltd is managed by several well trained and experienced staff who are the key to the success of the Company. They are from a diverse range of backgrounds in terms of education, religion, race, gender, age. In order to motivate staff and encourage them to be part of the key personnels, the company supports necessary on the job training as much as possible so that they can be part of the company’s decision-making process. All the managers are invited to the Head Office’s management meeting and share their views and concerns if there are any areas to improve or to increase the level of the service standards to customers.