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Standards and Disclosure
RBC's dynamic approach to corporate governance is responsive
to the changing regulatory environment and anticipates best
practices as they evolve. Our governance system determines
the fundamental relationships among the members of the Board
of Directors, management, shareholders and other stakeholders.
It defines the framework in which ethical values are established
and the context in which corporate strategies and objectives
are set.
The strength of our governance starts at the top with an
independent Chairman and experienced and well-informed directors,
who give priority to strategic planning, ensure that standards
exist to promote ethical behaviour throughout the organization,
and drive continuous improvement in governance practices.
Through its commitment to high standards of corporate governance,
the board retains the confidence of shareholders. Our governance
policies and practices support the ability of directors to
supervise management and enhance long-term shareholder value.
Our approach is founded on a commitment to high standards
of governance and integrity in all facets of our business
activities, promoting a proactive governance culture within
RBC.
The following demonstrate our global approach to governance,
compliance and ethics:
- RBC was first among our peer companies to separate the
positions of Chairman and Chief Executive Officer, in 2001,
ensuring independent leadership of the Board of Directors.
- Our comprehensive Director Independence Policy has continued
to evolve to reflect best practices. As of October 31, 2006,
14 of the 17 serving directors were independent.
- We provide continuous education to directors so they remain
knowledgeable about the business and regulatory environment
and the complex aspects of our business operations.
- We have enhanced disclosure in our Management Proxy Circular,
in particular, in the areas of compensation of senior officers
and directors, to improve transparency in our communications.
- Established in 2001, our Subsidiary Governance Office
(SGO) provides governance oversight among our many subsidiaries.
Our SGO encourages consistency, simplicity and transparency
across our enterprise to help position RBC as a best practices
organization in corporate governance;
- In 2001, our SGO introduced the Global Corporate Manager
(GCM), a technology solution for managing and tracking corporate
data on all RBC subsidiaries. GCM offers employees global
access to corporate data as appropriate, providing greater
flexibility, and the ability to streamline processes and
enhance data management; and
- In 2003, our Financial Controls Office launched an enterprise-wide
process for managing auditor independence. It provides a
structure and system for RBC businesses, functional units
or subsidiaries that are entering into a relationship with
a public accounting firm to confirm or obtain approval prior
to the commencement of work.
Enhanced Disclosure
Our disclosure practices and policies fully comply with guidelines
established by Canadian securities regulators, as well as
applicable provisions of the U.S. Sarbanes-Oxley Act of
2002 and requirements adopted by the New York Stock Exchange
and the U.S. Securities and Exchange Commission applicable
to foreign private issuers. In keeping with our goals of continuously
improving governance and providing greater transparency and
simplicity in our communications, in recent years we have
enhanced disclosure in our Management Proxy Circular.
More information is available on the Governance
section of this site and in our Annual
Report and our Management
Proxy Circular.
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