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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, having regard to a range of different matters as stated therein.

In addition to the matters prescribed under section 172, the Company takes into consideration other factors which it considers relevant to the decision being made including: the long-term viability of the Company; its expected cash flow and financing requirements; the ongoing need for strategic investment in its business; and the interests, views and expectations of its members as the suppliers of long-term equity capital to the Company.  By considering the Company’s purpose, vision and values together with its strategic priorities and having a process in place for decision-making, it does, however, aim to ensure that its decisions are consistent and made in the best interests of the Company.

The board of directors delegates authority for day-to-day management of the Company to executives and engages management in setting, approving and overseeing execution of the business strategy and related policies. Management provides operational updates to the board and identifies key risks and stakeholder-related matters which arise during the course of the Company’s financial year.

The board of directors considers and, if thought fit, approves the Company’s activities by way of board meetings or written resolutions. As part of the board process, directors receive supporting explanatory materials, additional verbal and/or written information from executives and independent professional advice, as and when required, to ensure that they have full access to the necessary information about the Company and, where deemed necessary, independent professional advice in discharging the duties under section 172.

The Company has no employees. Its key stakeholders are its customers, suppliers and other subsidiary undertakings of CKHH.  The views of, and the impact of the Company’s activities on, those stakeholders are an important consideration for the directors when making relevant decisions.

The Company coordinates with CKHH on all stakeholder engagements through the CKHH Group corporate governance and sustainability functions. The Company believes that such approach is a more efficient and effective one in helping to achieve a greater positive impact on stakeholders than by working alone as an individual company. For further details on stakeholder engagement, please refer to the Corporate Governance Report of CKHH included in its 2020 Annual Report and the 2020 Sustainability Report of CKHH, both available on the CKHH website.