The Company is committed to the principles of corporate governance contained in the Combined Code of Corporate Governance that is appended to the Listing Rules of the Financial Services Authority and for which the Board is accountable to shareholders. It is, however, accepted that there are three items of non-compliance, concerning: Board composition, Non-executive Director terms of appointment and the setting of the Chairman’s remuneration by the Board. These matters are further discussed on pages 41 and 42 of our Annual Report. The Board composition is currently being addressed, but the Company continues to believe the other two items remain reasonable.