Corporate Governance - Business Policies
Records Retention
It is the policy of Pepco Holdings, Inc. and its affiliates (collectively, “PHI” or the “Company”) to comply with all federal, state and local laws, rules, regulations and orders governing records retention.
Corporate records are an important asset. They can include virtually anything produced in the normal course of business. A corporate record may be in the form of paper, computer tapes, disks or memory, electronic mail or voice mail. A record may be something as obvious as a memo, contract or spreadsheet, or something not so obvious, such as a desk calendar, appointment book, personal notebook or expense account statement. A records retention program helps the Company meet legal retention requirements as well as assure orderly clearance of files and storage facilities.
Retention:
Failure to retain records for any minimum period required by law, rule, regulation or order could subject the Company to penalties. Depending on the type of record and the circumstances, failure to retain could cause the Company to lose certain legal rights, place it at a disadvantage in litigation or subject it to a claim of obstruction of justice or contempt of court. Alternatively, having a well-documented retention and disposition policy that is understood and adhered to by all employees and others working at the Company can prevent penalties for failure to properly respond to requests for information.
Disposal:
Records are to be retained only while they are being actively used, unless a longer retention period is required by law, rule, regulation, or order or for business purposes (i.e., internal or historic reference). The Company has set up controls to assure retention for required periods, followed by destruction when the records are no longer required to be kept either by law or for business purposes. Note, however, that routine records destruction procedures are to be suspended for any records that are or may be relevant to threatened or pending litigation. Records relevant to legal actions: Destruction of records that relate to a governmental investigation or legal proceeding may constitute obstruction of justice; therefore records of this type are not to be destroyed without specific authorization from the Legal Department.
