DRAFT - 10. 7. 773.
PROPOSED RESPONSIBILITIES FOR TOBACCO DIVISION' IN
RELATION TO C.P.C.
1. The C.P.C. is accountable to the B.A.T. Board
fo~ the overall
Supervision of all Divisions arid, it is assumed,
will concern
itself with the follo,,,ing:-
a) Profitability, including divisional capital and
revenue
budgets and performance against budgets.
b) Group financing and money management including
all medium
(3 years or more) and long-term financing by
tobacco
companies or their subsidiaries.
c) Annual and interim Group Reports & Accounts,
reserves and
dividends.
d) Group development, including expansion,
acquisitions, trade
investments, joint ventures, etc.
e) Long range corporate planning.
f ) Group empl oymen t po I i c i es and prac t i
ce s.
Top management matters - identification,
develo-n-frent and
rewards, Senior Mess admissions.
2. The Tobacco Division is accountable to the
Boarc~, via the C.P.C.
for the profitable operations and development of
the Group's
tobacco comDanies and their subsi,~iaries.
3. ~,Iatters to be reported by the Tobac:co
Division to C.P.C. in
conformity kith para. I would be:-
a) Divisional operating budget and 3-year plan
SLznmarising
all operating companies' budgets and plans
(including
capital and revenue expenditure) by terriLor"al
areas
except that separate information will be sho,,-n
for the
companies shown on List A attached.
b) Quarterly performance reviews against budget.
c: ) Any unusual matter severely affecting normal
performance
of an associated company.
d) Cash requirements for stockpile and other major
leaf
purchase:5.
e) New tobacco acquisitions, joint ventures, etc.,
and
disinvestments.
f) Proposed non-tobacco investments and
disinvestments
by tobacco companies.
12
CD
CD
CD
U1
Lrl
BATCo document for Province of British Columbia 27
October 1999


g ) Board appointmentS and No.] succession plans
for the
ma ior tobacco com:~anies shown on List B
attached.
h) Political moves o~ significance.
4. The fol lo-ing matters bill be dealt ~i th by
the Tobacco
Division Board of Management and will not be
referred upwards
except, perhaps, for information purposes at
intervals in
order to keet) the C.P.C. informed of important
positions
taken. These %vill, of course, be in addition to
those which
will be dealt with b%- the Tobacco Division Board
of
Management before reporting to the C.P.C. as
listed above.
a) Group Brand Good-xill and international
advertising budget.
b) All other Board appointments to Tobacco Board
companies.
c) Exoatriate transfers and proposed redundancies.
d) Ter.s and conditions of service and salary
gradings
for expatriate, international and U.K. management
staff.
The Tindley committee will be absorbed into the
Tobacco
Division,
e) Reporting of U.S, stockpile leaf purchase plans
and
possibly other majorleaf purchase plans and
central
machinery pool pians.
f) No, 1s visiting '.:'Ilbank will be asked to
report verball,..-
and C.P.C. and other Board members will be invited
to
at , end.
g) Tobacco Division emoense statements (dealt with
bv _-JS
as at present). Iz was felt that Group
Headquarters
anci other expen-se -statements should be dealt
with
seoaratel,., from .:ose o" the Tobacco Division.
C)
CD
CD
BATCo document for Province of British Columbia 27
October 1999


List A (seDa~ate bud2ets)
U.S.A.
Germany
Brazil
I.E.D.
List B (Board aDDOintments and No,l succession
plans)
U.S.A.
Canada
Germany
Australia
'f
South Africa
Brazil
India
Mexi c o
Argentina
Ma I av s i a
Benelux
Nizeria
I.E,D.
C)
CD
Ln
N)
--j
Cn
BATCo document for Province of British Columbia 27
October 1999