The Board of Capital Shopping Centres Group is responsible to all shareholders and stakeholders for the effective control and proper management of the group as a whole. The Board’s overarching objective is to ensure that the group delivers long-term sustainable growth in returns for its shareholders.

Best practice and corporate governance

The Company is required to comply from 1 January 2011 with the UK Corporate Governance Code issued in May 2010 by the Financial Reporting Council which replaced the previous Combined Code.

Capital Shopping Centres Group recognises that corporate governance is not an end in itself but an important means to an end. The Code contains no definition of corporate governance. The first supporting principle it contains, at provision A. 1, reads as follows:

“The Board’s role is to provide entrepreneurial leadership of the company within a framework of prudent and effective controls which enables risk to be assessed and managed. The Board should set the company’s strategic aims, ensure that the necessary financial and human resources are in place for the company to meet its objectives and review management performance. The Board should set the company’s values and standards and ensure that its obligations to its shareholders and others are understood and met.”

The Board believes that the internal processes adopted meet the highest standards of accountability and probity.

The company has also demonstrated a strong commitment to high standards of Corporate Responsibility, (see our Corporate Responsibility report 2010) and has been included in the FTSE4Good listing, the JSE SRI Index, the Dow Jones Sustainability Index and other important indices.

The Board is accountable to the company’s shareholders for the good conduct of the company’s affairs and the information and statements set out in the Corporate Governance Section of the 2010 Annual Report describe how the main principles contained in the Code are applied by the company.