ng term sustainable business values, generate a continuous profit growth to the shareholders and make customers extremely satisfy their growing wants and thus to achieve long term goals of the company. The directors, according to Companies Act that came in to effect on October 2007, have the central duty to act in good faith and in such a way that it should promote the company in its success.
Executive Chairman Lord Burns was influential in preparing rules and he has been considered to be independent under The Combined Code. Lord Burns had met an independence criterion that was set out in The Combined Code on his appointment on July 2006.
“The Code states that ‘if exceptionally a Board decides that a Chief Executive should become Chairman, the Board should consult major shareholders in advance and should set out its reasons to shareholders at the time of the appointment and in the next annual report”(M&S, 2008). On April 2008, Lord Burns wrote a letter to the shareholders stating the reasons behind board’s decision to appoint new chairman.
Men’s socks at stores are considered to be inventories and are valued at the lower of cost and net realizable value using the retail method. It is computed on the basis of selling price less the appropriate trading margin.
Earning per share is calculated on the basis of earnings after tax and the weighted average number of ordinary shares. The adjusted earnings per share are calculated on the basis of earnings excluding the effects of property disposals and exceptional