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John Lewis Partnership plc Annual Report and Accounts 2014
THE PARTNERSHIP COUNCIL REPORT
“ During the year, the Partnership Council has been involved in the review of performance, holiday pay
How does the Council hold the
Chairman to account? All managers in the Partnership need to be particularly open to challenge and suggestions from their fellow co-owners, whose business they have the responsibility of managing.
Jane Burgess, Partners’ Counsellor
This is especially true of the Chairman in his relationship with the Council, which “holds him to account” by asking questions, giving feedback and making suggestions for how things could be improved.
Council members The Partnership Council currently consists of 66 elected members (38 Waitrose, 25 John Lewis, two Corporate, one Partnership Services), a President, three members appointed by the Chairman and the 15 members of the Board, who are automatically members. Over the past year, there have been 16 by-elections and Council attendance averaged 97% of members.
Meetings and attendance The Partnership Council meets at least four times a year and has three roles: – To hold the Chairman to account
– To make some key decisions – To influence policy
The Council holds the Chairman accountable for achieving Principle 1 by acting as the focus of opinion in the Partnership. Those opinions are channelled through the various levels of elected bodies to the Council. The Council may delegate to Divisional Councils and local forums so that management is held to account at the most appropriate level.
The Council has three vital decision- making powers:
1. To elect the Trustees of the Constitution and five Directors to the Board.
2. To change the Constitution, with the Chairman’s agreement.
3. To dismiss the Chairman.
Role of the Council Partnership Council is central to the business’s co-ownership structure, and its role is set out in the Constitution. As the most senior representative body of the members of the Partnership, it entrusts management of the business to the Partnership Board, which delegates its management authority to the Chairman (Rule 3). It is one of the Partnership’s three governing authorities, along with the Chairman and the Partnership Board. All three are ultimately responsible for the success and wellbeing of the Partnership.
The Constitution requires that the Chairman appears formally before the Council to account for the Partnership’s performance as set out in the half- and full- year results. There are three stages to this process: firstly, the Council needs to have sufficient understanding and visibility of the performance during the reporting period and be able to understand the results in context; secondly, there needs to be a comprehensive debate on the proposal (see below); finally, all Councillors who represent constituents cast their vote. Members of the Partnership Board and the three members appointed by the Chairman have no vote in Council.
The wording of the proposal, which is always proposed by the President, is “This Council welcomes the Chairman’s report and supports his leadership of the Partnership and its continuing progress towards achieving Principle 1”.
For matters discussed at the Partnership Board, Councillors rely on the five Partners whom they have elected as Directors to understand and challenge on behalf of Partners. Councillors are also entitled to seek the reassurances they require to form their own view as an independent governing authority.
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