Managing the Business

Compliance with the Combined Code

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. Our Annual Report sets out Stagecoach Group’s corporate governance arrangements. It also includes the disclosures recommended by the Financial Reporting Council (“FRC”) UK Corporate Governance Code (the “Code”), and describes how the principles of good corporate governance that are set out in the 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.

The Stagecoach Board is committed to maintaining a corporate governance structure appropriate to the Group and its strategy. Good corporate governance remains central to delivering the Group’s objectives. As explained later in this report, we have again reviewed the effectiveness of the Board and its Committees and we consider the corporate governance structure to remain appropriate for the Group.

The FRC issued the current edition of the Code in June 2010, which applies to accounting periods beginning on or after 29 June 2010 and is available on the FRC’s website at http://www.frc.org.uk/Our-Work/Codes-Standards/Corporate-governance.aspx. The Directors believe that throughout the year ended 30 April 2012 the Group complied with all of the recommendations of the Code. The Group also complies with the corporate governance requirements of the Financial Services Authority’s Listing Rules, and Disclosure and Transparency Rules.