The Board is responsible for formulating, reviewing and approving the Company’s strategy, financial activities and operating performance. Day-to-day management is devolved to the Board, who are charged with consulting the Board on all significant financial and operational matters.
The Company Secretary ensures necessary information is supplied to the Directors on a timely basis to enable them to discharge their duties effectively. All Directors have access to the advice of the Company’s solicitors as well as access to independent professional advice, at the Company’s expense, as and when required.
The Audit Committee is responsible for overseeing the Group’s financial reporting disclosure process; this includes the choice of appropriate accounting policies. It also monitors internal financial controls as well as overseeing the hiring and performance of the external auditors. The Audit Committee comprises three Directors: Adrian Fairbourn (Chairman), Donald Strang and Andrew Suckling.
The Remuneration Committee is responsible for making recommendations to the Board on the remuneration for Directors and Senior Management. Financial packages for Directors are established by reference to those prevailing in the employment market for executives of equivalent status, both in terms of level of responsibility of the position and their achievement of recognised job qualifications and skills. The Committee will also have regard to the terms that may be required to attract an equivalent experienced executive to join the Board from another company. It comprises two Directors: Adrian Fairbourn (Chairman) and Andrew Suckling.
The Directors do not consider that, given the size of the Board, it is appropriate to have a Nomination Committee.
The Directors acknowledge their responsibility for the Group’s systems of internal controls and for reviewing their effectiveness. These internal controls are designed to safeguard the assets of the Company and to ensure the reliability of financial information for both internal use and external publication. While they are aware that no system can provide absolute assurance against material misstatement or loss, in light of increased activity and further development of the Company, continuing reviews of internal controls will be undertaken to ensure that they are adequate and effective.
The Board considers risk assessment to be important in achieving its strategic objectives. There is a process of evaluation of performance targets through regular reviews by Senior Management to forecasts. Project milestones and timelines are reviewed regularly.
The Board regularly evaluates and reviews any business risks when reviewing project timelines. The types of risks reviewed include:
- regulatory and compliance obligations
- occupational health, safety and environmental requirements
- legal risks relating to contracts, licences and agreements
- insurance risks
- political risks where appropriate.
The Group maintains insurance in respect of its Directors and Officers against liabilities in relation to the Company.
The Group finances its operations through equity and holds its cash as a liquid resource to fund the obligations of the Group. Decisions regarding the management of these assets are approved by the Board.
The Board has adopted a Share Dealing Code that applies to Directors, Senior Management and any employee who is in possession of ‘inside information’. All such persons are prohibited from trading in the Company’s securities if they are in possession of ‘inside information’. Subject to this condition and trading prohibitions applying to certain periods, trading can occur provided the individual has received the appropriate prescribed clearance.
Relations with Shareholders
The Board is committed to providing effective communication with the shareholders of the Company. Significant developments are disseminated through stock exchange announcements and regular updates of the Company website. The Board views the AGM as a forum for communication between the Company and its shareholders and encourages their participation in its agenda.