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<p>DFID is an active and engaged shareholder. Our influence over the strategic direction
of CDC is evident from the changes that CDC has undergone over the last 5/6 years,
in which we have played a key role.</p><p>DFID, as sole shareholder, sets the company’s
investment policy – outlining which countries CDC should invest in, the types of investments
it makes, and setting the performance targets CDC must reach. DFID appoints the Chair
and certain other members of the Board, and holds the Board accountable for delivery
of CDC’s five year strategy and for achieving the performance targets set in the Investment
Policy.</p><p>Management has delegated authority from the Board to make investment
decisions, meet corporate objectives and financial regulatory obligations.</p><p>DFID
exercises shareholder oversight through close contact with both Board and management,
including via Quarterly Shareholder Meetings held to review progress and performance
(financial, development impact, risk management, investment pipeline forecasts) and
Annual Meetings with the Board.</p><p>DFID’s oversight of CDC is scrutinised by the
International Development Committee, the National Audit Office, UK Government Investments,
the Treasury and the Public Accounts Committee. The National Audit Office recently
described DFID’s governance arrangements as ‘thorough’ in its recent value for money
study.</p><p> </p>
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