Corporate governance

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Unilever constantly keeps its corporate governance arrangements under review, and it is our practice to comply, where practicable, with the highest standards of applicable codes and respond to developments appropriately.

The Unilever Group

Unilever N.V. (NV) and Unilever PLC (PLC) are the two parent companies of the Unilever Group, having separate legal identities and separate stock exchange listings for the shares of NV and PLC, which are not interchangeable. However, together with their group companies, they operate effectively as a single economic entity and constitute a single reporting entity for the purposes of presenting consolidated accounts.

In order to ensure unity of governance and management, they have the same Directors and are linked by a number of co-operation agreements. In particular, the Equalisation Agreement regulates the mutual rights of the two sets of shareholders, including a formula for paying dividends. These features mean that all shareholders, whether of NV or PLC, share in the prosperity of the whole business.

Further details of these agreements are contained in the Annual Report and Accounts 2007 and are also available on www.unilever.com/investorcentre/corpgovernance

NV and PLC are holding and service companies. Unilever’s businesses are carried out by their subsidiaries around the world. Shares in group companies are held ultimately by either NV or PLC, or jointly by the two companies, in varying proportions.

Unilever has divided its business into three regions, The Americas, Asia Africa and Europe, which are responsible for delivering top and bottom line results, implementing proven brand mixes in their region and focusing on building capabilities with customers. The regions are complemented by two category teams, Foods, and Home and Personal Care, which are responsible for the brand development process including innovation, brand positioning and communication and category strategies. In 2008 these teams will be brought together under a single leadership.

Read the rest of the Corporate governance section - Unilever policies