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The directors submit their report
and the audited financial statements of the company, British Telecommunications
plc, and the group, which includes its subsidiary undertakings,
for the 2001 financial year.
Introduction
The business review,
our commitment to society,
the financial review, the
discussion on corporate governance,
risk factors, the
report
on directors’ remuneration and the
audited
financial statements form part of this report.
Principal activity
The group’s principal activity is the supply of communications
services and equipment. In the 2001 financial year, 91% of group
turnover arose from operations in the UK.
Directors
The names and biographical details of the directors of the company
in the section, Board of directors
and executive committee. All served throughout the financial
year, with the exception of Maarten van den Bergh, Sir Anthony Greener
and Philip Hampton who joined the Board on 1 September, 1 October
and 1 November 2000, respectively, and Sir Christopher Bland, who
joined the Board as Chairman on 1 May 2001. In addition, Robert
Brace and Keith Oates served as directors until their retirement
on 31 December 2000, as did Bill Cockburn and Sir Iain Vallance
until their retirement on 31 March and 1 May 2001, respectively.
Following his retirement from the Board, the former Chairman, Sir
Iain Vallance, remains with BT as President Emeritus.
In accordance with the articles of association, Sir Christopher
Bland, Sir Anthony Greener, Philip Hampton and Maarten van den Bergh,
having been appointed to the Board since the last annual general
meeting, retire at the forthcoming annual general meeting and will
be proposed for election. Lord Marshall, Dr Anderson and Sir John
Weston retire by rotation. Dr Anderson and Sir John Weston will
be proposed for re-election. Details of these directors’ service
contracts or contracts of appointment are included in the discussion
on corporate governance and
the report on directors’
remuneration.
Substantial shareholdings
At 22 May 2001, the company had received no notification under Part
VI of the Companies Act 1985 in respect of holdings of 3% or more
of the company’s issued ordinary share capital.
Interest of management in certain transactions
During and at the end of the 2001 financial year, none of the company’s
directors was materially interested in any material transaction
in relation to the group’s business and none is materially
interested in any presently proposed material transactions.
Policy on the payment of suppliers
BT’s policy is to use its purchasing power fairly and to pay
promptly and as agreed.
BT has a variety of payment terms with its suppliers. The terms
for payments for purchases under major contracts are settled when
agreeing the other terms negotiated with the individual suppliers.
It is BT’s policy to make payments for other purchases within
30 working days of the invoice date, provided that the relevant
invoice is presented to the company in a timely fashion and is complete.
BT’s payment terms are printed on the company’s standard
purchase order forms or, where appropriate, specified in individual
contracts agreed with the supplier. The ratio, expressed in days,
between the amounts invoiced to the company by its suppliers in
the 2001 financial year and the amounts owed to its trade creditors
at the end of the year was 21 days.
Auditors
A resolution to reappoint PricewaterhouseCoopers as auditors of
the company and authorise the directors to settle their remuneration
will be proposed at the annual general meeting.
Authority to purchase shares
The authority given at last year’s annual general meeting
for the company to purchase in the market 650 million of its shares,
representing 10% of the share capital in issue at 24 May 2000, expires
on 11 October 2001. This authority was not used during the year
and shareholders will be asked to give a similar authority at the
annual general meeting.
Annual general meeting resolutions
The resolutions to be proposed at the annual general meeting to
be held on 18 July 2001, together with explanatory notes, appear
in the separate Notice of Annual General Meeting sent to all shareholders.
By order of the Board
C R Green
Secretary
22 May 2001
Registered office: 81 Newgate Street, London
EC1A 7AJ
Registered in England No. 1800000 |
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