The highest Towngas governance body is our Board of Directors, which is composed of 10 members including three Executive Directors and seven Non-executive Directors. Of the seven Non-executive Directors, three are independent. Ultimately accountable for the Group´s activities, strategies and financial performance, the Board is responsible for maintaining sound and effective internal control systems to safeguard the Group’s assets and shareholders’ interests. To strengthen internal controls, the Board has appointed four Board Committees to oversee different aspects of the Group’s business – they are the Audit Committee, Remuneration Committee, Investment Committee of the Retirement Schemes and Treasury Committee.

The Board is committed to maintaining good corporate governance with an emphasis on accountability and an increase in transparency. Making sure that our stakeholders have full access to our information and activities, we publish a Corporate Information Booklet annually, which provides details of our environmental, safety and health, operational and financial information.

Details of the composition and operation of the Board and its Committees together with Directors' biographies are set out in our Annual Report.

Good corporate governance practices build trust and faith among our stakeholders, as they realise that we are committed to taking care of their needs and to fulfilling our social responsibilities. We ensure sound business and ethical operations by following a strict internal Code of Conduct that covers bribery and corruption, equal opportunities, fair dealing, freedom of association and conflicts of interest. Towngas employees also enjoy rewarding careers based on their capabilities and performance, together with the necessary and appropriate training programmes to improve customer service quality, enhance their performance and maximise their potential.

During the year ended 31st December 2007, Towngas complied with all code provisions set out in the Code on Corporate Governance Practices contained in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.