52


John Lewis Partnership plc Annual Report and Accounts 2014


OUR GOVERNANCE APPROACH CONTINUED


Why do we voluntarily apply the principles of the UK Corporate Governance


Code (the Code)? As the Partnership has no tradable equity share capital listed on the LSE, it is eligible for exemption from the Financial Conduct Authority’s requirements relating to corporate governance disclosures. The Code is a guide to effective board practice and is based on the principles of good governance, accountability, transparency, probity and focus for the sustainable success of an entity over the longer term. These principles are consistent with our Constitution, and as the Partnership seeks to maintain its reputation and standing in its dealing with external stakeholders as well as Partners, the Partnership Board voluntarily seeks to apply the Code principles.


Who owns the Partnership? John Spedan Lewis, the founder of the Partnership, transferred his shareholding and the ownership of the Partnership into a trust to be held for the benefit of its members. The business became known as the John Lewis Partnership and the members, its employees, became known as Partners. John Lewis Partnership Trust Limited (the Trust Company) is the appointed trustee of the trust and is the ultimate holding company of the Partnership.


How does the Partnership share the responsibilities of ownership as well as its rewards – profit,


knowledge and power? The Partnership aims to make sufficient profit from its trading operations to sustain the business through investment and to distribute a share of those profits as Partnership Bonus to all Partners. This report, together with the Partnership Council report, on pages 64 to 67, explains how knowledge and power is shared within the Partnership through its democratic structures and how it is governed.


Our structure and governing authorities


Our governance structure is designed to safeguard the Partnership’s future, enhance its prosperity and ensure its integrity.


The Partnership operates through a series of delegated authorities and assurance mechanisms whilst ensuring that the views of Partners are heard.


John Lewis Partnership Trust Limited


Audit


and Risk Committee


Remuneration Committee


Chairman’s


Nominations Committee


The Partnership Board operates in accordance with its matters reserved for the Board.


Partners’ Counsellor


Managing Director Waitrose


Managing Director


John Lewis


Finance Director


Managing Director


Partnership Services


Waitrose


Management Board


John Lewis Management Board


Partnership Services


Management Board


Director of Personnel The


Partnership Board


The


Partnership Council


The Chairman


Internal Audit and Risk Management


Provides assurance to the Board through the Audit and Risk Committee, on the Partnership’s risk management and controls, and the integrity of the Annual Report and Accounts.


Key


Partnership delegations Governance and assurance bodies


Governance and assurance


Both Management and governance responsibilities


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