Section 172 statement
The following sections serve as the section 172 statement for McLagan Investments Limited, pursuant to the
requirements of The Companies (Miscellaneous Reporting) Regulations 2018. Section 172 of the Companies Act
2006 (“CA 2006”) recognises that whilst companies are run for the benefit of their shareholders, abusiness’s
long-term success and reputation are dependent upon maintaining relationships with stakeholders and an
appreciation of the external impact of its activities.
The directors of the Company (the “Directors”) are fully aware of their responsibilities to promote the success of the
Company in accordance with section 172 of the CA 2006 and are keen to ensure proper reflection on stakeholder
engagement and issues at Director level and promote continuous reflection on opportunities for development.
The Company’s principal activity is to charge property rental, relating to properties owned or leased by the
Company, predominantly to fellow wholly owned subsidiaries of the immediate parent undertaking, ASDA Group
Limited. Accordingly, in considering the long-term consequences of decisions and the impact of the Company’s
decisions on its stakeholders, it is important that the Directors also consider the Company’s operations in the context
of the operations of the Group as awhole.
The Company’s immediate parent undertaking, ASDA Group Limited also plays an important role in the
governance of the operations of the Company. This includes consideration and approval of key commercial
decisions which materially impact the Company, its stakeholders and its operations. All of the Directors are also
directors of ASDA Group Limited. Where individuals are directors of separate legal entities within the Group, they
are aware of their separate responsibilities regarding each of these legal entities. Further details of the directors of
ASDA Group Limited who served during the year are included in the financial statements of ASDA Group Limited
which are available from ASDA House, Southbank, Great Wilson Street, Leeds LS11 5AD.
The ASDA Real Estate &Investment Committee (“AREIC”) is constituted as acommittee of the board of directors
of ASDA Group Limited (the “Board”) and operates under clearly documented terms of reference defining its scope
of authority, which includes oversight of the Group’s capital investment programme and real estate matters. AREIC
is therefore relevant to the principal activities of the Company and plays arole in the decision-making process of the
Company. All of the Directors are members of AREIC and AREIC is also attended by senior employees of the
Group, from arange of business units that support the operations of the Company including property, commercial,
strategy, finance and legal.
AREIC meets at least monthly and with such greater frequency as is considered necessary. It creates aformal
vehicle for direct and ongoing engagement between the Directors, the wider Board and the business units who are
involved in supporting the operations of the Company and the wider Group real estate portfolio. It is therefore a
forum for engaging directly with material stakeholders, such as its investor and customers, and aforum for sharing
the outcome of other stakeholder engagement carried out by business units that support the operations of the
Company.
Engaging stakeholders in this wayand the outcome of stakeholder engagement generally, as fed back to the
Directors via AREIC, ensures that the Directors consider the impact of decisions on relevant stakeholder groups and
provides open lines of communication with affected stakeholders (in particular, members of the Board of ASDA
Group Limited, as the investor and the parent company of the Company’s tenants) to ensure proposed decisions are
fully understood and supported before taken. The section below sets out a more detailed summary of the Company’s
relationships with its key stakeholders and how the Directors engage with those stakeholders. The Directors
recognise that the pertinence of aparticular stakeholder group may vary depending upon the matter under
discussion.
