POL00148481
scenario Two — Continuity
2 June 2014
DRAFT NOT POLICY
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@
Companies Act Section 172 — Directors Duties
In making decisions about the future direction of the Company Directors must have regard to Section 172 of the
Companies Act — ahead of other factors like negative PR. S 172 is set out below for reference:
(1)A director of a company must act in the way he considers, in good faith, would be most likely to promote the
success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other
matters) to—
(a)the likely consequences of any decision in the long term,
(b)the interests of the company's employees,
(c)the need to foster the company's business relationships with suppliers, customers and others,
(d)the impact of the company's operations on the community and the environment,
(e)the desirability of the company maintaining a reputation for high standards of business conduct, and
(f)the need to act fairly as between members of the company.
(2)Where or to the extent that the purposes of the company consist of or include purposes other than the benefit
of its members, subsection (1) has effect as if the reference to promoting the success of the company for the
benefit of its members were to achieving those purposes.
(3)The duty imposed by this section has effect subject to any enactment or rule of law requiring directors, in
certain circumstances, to consider or act in the interests of creditors of the company.
C9
Post Office® COMMERCIAL IN CONFIDENCE AND LEGALLY PRIVILEGED
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Sparrow — communications approach — SOPHIE TO &
DRAFT NARRATIVE
Proposal: We continue administering the Scheme in the current manner, defending Post Office’s
interests as far as possible without causing the Working Group to break up.
Narrative: Subpostmasters are the lifeblood of our organisation and we want them to have faith in
our systems and processes. As a responsible business the Post Office is committed to listening and
learning from its people. As such in 2012, following allegations raised with us by some
subpostmasters, we set up an inquiry into the Horizon computer system.
In the two years since the inquiry began there has been no evidence of deficiencies with the Horizon
system. We have also commissioned Deloitte to examine the Horizon system further and received
assurance around the integrity of the system, which deals with 68,000 transactions every day.
As part of our commitment to investigate cases raised with us by a small number of subpostmasters
we set up a Mediation Scheme in order to offer an opportunity for them to have their cases heard. At
the same time we launched a Branch Support Programme to find ways of improving the support we
offer the subpostmaster community.
Post Office® COMMERCIAL IN CONFIDENCE AND LEGALLY PRIVILEGED
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Sparrow — communications approach continued @
We are working hard to ensure that any cases submitted to the scheme are processed as
quickly as possible, and we remain committed to resolving all outstanding cases.
We will publish a report when all investigations have been completed.
If pressed on why taking so long? Post Office has employed a dedicated team to ensure
that applications are processed as quickly as possible. Of the 150 cases put forward less
than XX/XX per cent have completed the questionnaire required for their case to be
considered. However, of the XX sent to PO we have completed our investigation for XX/XX
per cent and forwarded them to 2™ Sight for their input.
We recognise that 2"4 Sight have made a significant contribution to the scheme however, due
to their limited resources despite their best efforts that have been unable to forward any/ have
only forwarded XX case to the scheme.
C9
Post Office® COMMERCIAL IN CONFIDENCE AND LEGALLY PRIVILEGED
Scheme
Media a small number
of cases (5)
Most applicants
disappointed
At least 1 high profile
media case
SS produce poor
quality reports in
public domain
Slow progress of the
Scheme
Strained WG relations
Applicants expectation
miss match to
outcomes
Series of mediations
Summer-Christmas
(Sep-Dec)
Slow progress of the
Scheme
Strained WG relations
Applicants expectation miss
match to outcomes
Series of mediations
Run up to election
(Jan-May)
+ Slow progress of the
Scheme
+ Strained WG relations
+ Applicants expectation
miss match to outcomes
+ Series of mediations
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2 yrs + then
end of scheme
Slow progress of the
Scheme
Strained WG relations
Applicants expectation
miss match to outcomes
Series of mediations
Media
Potential for
applicants or JFSA to
go the media as not
happy with result of
mediation or did not
go to mediation.
Potential for year on
follow up by media
following story i.e.
BBC National and
regional plus national
and regional print.
Potential for applicants
of JFSA to go the
media as not happy
with result of mediation
or did not go to
mediation.
Potential for increased
interest as more
applicants are
dissatisfied with
outcome of mediation.
This culmination could
drive further national
stories
Potential for any
comment in R&A to
drive further interest
Potential for applicants of
JFSA to go the media as
not happy with result of
mediation or did not go to
mediation.
Potential for increased
interest as more applicants
are dissatisfied with
outcome of mediation. This
culmination could drive
further national stories.
As becomes apparent major
compensation will not be
paid potential for Fol on
costs becomes more likely
and risks further negative
coverage on spend.
+ Potential for applicants
of JFSA to go the media
as not happy with result
of mediation or did not
go to mediation.
+ Potential for increased
interest as more
applicants are
dissatisfied with
outcome of mediation.
This culmination could
drive further national
stories
+ Award of IT&C Front
Office contract could
result in IT Media and
others suggesting
replacement as a result
of issues with horizon —
damaging ability to
highlight benefits and
result in further negative
coverage.
+ JFSA ramp up pressure
on JS and call for select
committee report.
Likely that a number of
media following the
story i.e. BBC National
and regional plus
national and regional
print will follow up as
neither JFSA and SS
not satisfied with the
scheme and will go to
media.