The Stagecoach Board is accountable to shareholders for the Group’s activities and is responsible for the effectiveness of corporate governance practices within the Group in conformity with the Combined Code on Corporate Governance (“the Combined Code”).

This section discusses Stagecoach Group’s corporate governance arrangements and management structures. It also includes the disclosures recommended by the Combined Code, and describes how the principles of good corporate governance that are set out in the Combined Code have been applied. In line with best practice, separate reports are provided from each of the Audit Committee, Nomination Committee, Health, Safety and Environmental Committee and Remuneration Committee.

We have again under intense focus in light of recent, perceived governance failures, particularly in the financial services sector. The Stagecoach Board remains committed to maintaining a corporate governance structure appropriate to the Group and its strategy. Good corporate governance remains central to delivering our objectives in the areas of safety, risk management, shareholder value, financial performance, organic growth, service delivery and staff. As explained later in this report, we have again undertaken a review of the effectiveness of the Board and its Committees and we consider the corporate governance structure to remain appropriate for the Group.