2016 Code requirement on competence of audit committee

United Utilities Group PLC – Annual report – 31 March 2018

Industry: utilities

Corporate governance report (extract 1)

Letter from the Chairman (extract page 65)

The board considered the 2016 UK Corporate Governance Code requirement (the Code), that the ‘audit committee as a whole shall have competence relevant to the sector in which the company operates’ and concluded that when taking into account the skills, knowledge, experience and professional qualifications of committee members (see the directors’ biographies on pages 60 to 63) this 2016 Code requirement was fulfilled. Furthermore, all members of the audit committee are independent non-executive directors.

Corporate governance report (extract 2)

Audit committee (extract)

As chair of the committee I reiterate the board’s view (see page 65) that the committee as a whole has sectoral competence as disclosed in the biographies of the relevant committee members (see the biographies of the directors on pages 60 to 63). All members contribute to the work of the committee and have the skills and necessary degree of financial literacy. As non-executive directors, my colleagues and I are of an independent mindset and would have no hesitation in seeking clarification and a full explanation from management or the external auditor on any matter we feel necessary.