60 John Lewis Partnership plc Annual Report and Accounts 2016 Governance in the Partnership


“ The Partnership’s Constitution


defines how we run our business.” Sir Charlie Mayfield Chairman, John Lewis Partnership


The Partnership is governed by our written Constitution, which establishes the Partnership’s Principles and the way in which we should operate.


How have we structured this year’s governance report?


We have structured our governance report to include the following headings, reflecting how our Constitution is set out:


How power is shared Page 63 >


Partners’ rights and responsibilities Page 72 >


Responsibilities to others Page 73 >


We hope that this will help to show how our Principles are at the heart of how we do business, and where responsibility sits for making sure this continues for future generations of Partners.


How is the Partnership governed?


The Partnership is governed by our written Constitution and the two Trust settlements. The Constitution has been refreshed over the years to reflect the changing societal, business and economic environment in which we operate, yet retains a direct connection with the fundamental principles established in 1928.


At the heart of the Constitution is Principle 1, that the Partnership’s ultimate purpose is the happiness of all its members, through their worthwhile and satisfying employment in a successful business. Because the Partnership is owned in trust for its members, they share the responsibilities of ownership as well as its rewards – profit, knowledge and power.


This compelling statement on the responsibility of co-ownership is what differentiates the Partnership and its governance from other corporate bodies. Our governance structure is designed to protect the fundamental principle of co-ownership and engagement of Partners, safeguard the Partnership’s future, enhance its prosperity and ensure its integrity. More about this can be found in ‘How power is shared’ on page 63.


Please see pages 22 to 23 for information on the Partnership’s strategy which is guided and supported by our unique governance framework.


The Constitution is available to


all Partners on the Partner intranet and to other interested parties at www.johnlewispartnership.co.uk


Which other governance regulations are applicable to the Partnership?


The Partnership is also governed by the Companies Act, and complies with the Listing Rules and Disclosure and Transparency Rules applicable to a Standard Listed company on the London Stock Exchange (LSE). Our listing is explained more fully on page 99 of our Directors’ Report. In addition, each company within the Partnership is governed by its Articles of Association.


Please see ‘Our Governance model is different’ on page 75 for information on how the Partnership Board has voluntarily adopted the UK Corporate Governance Code (‘the Code’) on a comply or explain basis.


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 all Partners. John Lewis Partnership Trust Limited (the Trust Company) is the appointed Trustee of the Trust.


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