Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

VEEM LTD Governance Information 2019

Oct 24, 2019

65997_rns_2019-10-24_103ed9b4-758f-4117-bc8e-3dd1bf49bade.pdf

Governance Information

Open in viewer

Opens in your device viewer

VEEM LTD ACN 008 944 009 (Company)

CORPORATE GOVERNANCE STATEMENT

This Corporate Governance Statement is current as at 24 October 2019 and has been approved by the Board of the Company on that date.

This Corporate Governance Statement discloses the extent to which the Company has followed the recommendations set by the ASX Corporate Governance Council in its publication Corporate Governance Principles and Recommendations ( Recommendations ). The Recommendations are not mandatory, however the Recommendations that will not be followed have been identified and reasons provided for not following them along with what (if any) alternative governance practices the Company intends to adopt in lieu of the recommendation.

The Company has adopted a Corporate Governance Plan which provides the written terms of reference for the Company’s corporate governance duties.

Due to the current size and nature of the existing Board and the magnitude of the Company’s operations, the Board does not consider that the Company would gain any benefit from individual Board committees and that its resources would be better utilised in other areas as the Board was of the view that at this stage the experience and skill set of the current Board was sufficient to perform those roles. The Board continued to assess its members. Under the Company’s Board Charter, the duties that would ordinarily be assigned to individual committees are currently carried out by the full Board under the written terms of reference for those committees. The Company’s Corporate Governance Plan is available on the Company’s website at www.veem.com.au .

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
Principle 1: Lay solid foundations for management and oversight
Recommendation 1.1
A listed entity should have and disclose a charter which
sets out the respective roles and responsibilities of the
Board, the Chair and management, and includes a
description of those matters expressly reserved to the
Board and those delegated to management.
YES The Company has adopted a Board Charter that sets out the
specific roles and responsibilities of the Board, the Chair and
management and includes a description of those matters
expressly reserved to the Board and those delegated to
management.
The Board Charter sets out the specific responsibilities of the

1

2658-02/1491643_2

  • RECOMMENDATIONS (3[RD] EDITION) Recommendation 1.2 A listed entity should: YES (a) undertake appropriate checks before appointing a person, or putting forward to security holders a candidate for election, as a Director; and

COMPLY

  • (b) provide security holders with all material information relevant to a decision on whether or not to elect or reelect a Director.

EXPLANATION Board, requirements as to the Board’s composition, the roles and responsibilities of the Chairman and Company Secretary, Directors’ access to Company records and information, details of the Board’s relationship with management, details of the Board’s performance review and details of the Board’s disclosure policy.

A copy of the Company’s Board Charter, which is part of the Company’s Corporate Governance Plan, is available on the Company’s website.

  • (a) The Company has guidelines for the appointment and selection of the Board in its Corporate Governance Plan. The Company’s Nomination Committee Charter requires the Board to ensure appropriate checks (including checks in respect of character, experience, education, criminal record and bankruptcy history (as appropriate)) are undertaken before appointing a person, or putting forward to security holders a candidate for election, as a Director.

  • (b) Under the Nomination Committee Charter, all material information relevant to a decision on whether or not to elect or re-elect a Director must be provided to security holders in the Notice of Meeting containing the resolution to elect or re-elect a Director.

Recommendation 1.3 The Company’s Nomination Committee Charter requires the
A listed entity should have a written agreement with each
Director and senior executive setting out the terms of their
appointment.
YES Board to ensure that each Director and senior executive is a
party to a written agreement with the Company which sets out
the terms of that Director’s or senior executive’s appointment.
The Company has written agreements with each of its Directors
and senior executives.
Recommendation 1.4 The
Board
Charter
outlines
the roles,
responsibility
and
accountability of the Company Secretary. In accordance with

2

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
The company secretary of a listed entity should be
accountable directly to the Board, through the Chair, on
all matters to do with the proper functioning of the Board.
YES this, the Company Secretary is accountable directly to the
Board, through the Chair, on all matters to do with the proper
functioning of the Board.
Recommendation 1.5
A listed entity should:
(a) have a diversity policy which includes requirements for
the Board or a relevant committee of the Board to set
measurable objectives for achieving gender diversity
and to assess annually both the objectives and the
entity’s progress in achieving them;
(b) disclose that policy or a summary or it; and
(c) disclose as at the end of each reporting period:
(i)
the measurable objectives for achieving gender
diversity set by the Board in accordance with the
entity’s diversity policy and its progress towards
achieving them; and
(ii) either:
(A)
the respective proportions of men and
women on the Board, in senior executive
positions and across the whole organisation
(including how the entity has defined
“senior executive” for these purposes); or
(B)
if the entity is a “relevant employer” under
the Workplace Gender Equality Act, the
entity’s most recent “Gender Equality
Indicators”, as defined in the Workplace
Gender Equality Act.
PARTIALLY/
YES
(a) The Company has adopted a Diversity Policy which provides
a framework for the Company to establish and achieve
measurable diversity objectives, including in respect of
gender diversity. The Diversity Policy allows the Board to set
measurable gender diversity objectives, if considered
appropriate, and to assess annually both the objectives if
any have been set and the Company’s progress in
achieving them.
(b) The Diversity Policy is available, as part of the Corporate
Governance Plan, on the Company’s website.
(c)
(i)
The Board does not presently intend to set measurable
gender diversity objectives because:
-
due to current nature of the Company’s existing
and proposed activities and the Board’s view
that the existing Directors and senior executives
have sufficient skill and experience to carry out
the Company’s plans; and
-
if it becomes necessary to appoint any new
Directors or senior executives, the Board will
consider the application of a measurable gender
diversity
objective
requiring
a
specified
proportion of women on the Board and in senior
executive roles, without unduly limiting the
Company from applying the Diversity Policy as a
whole and the Company’s policy of appointing
based on skills and merit.

3

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
Recommendation 1.6
A listed entity should:
(a) have and disclose a process for periodically evaluating
the performance of the Board, its committees and
individual Directors; and
(b) disclose, in relation to each reporting period, whether
a performance evaluation was undertaken in the
reporting period in accordance with that process.
Partially
/YES
(a) The Board is responsible for evaluating the performance of
individual Directors on an annual basis. It may do so with the
aid of an independent advisor. The process for this is set out
in the Company’s Corporate Governance Plan, which is
available on the Company’s website.
(b) The Company’s Corporate Governance Plan requires the
Company
to
disclose
whether
or
not
performance
evaluations were conducted during the relevant reporting
period.The process was not undertaken during the year
ended 30 June 2019 however the nature of the Board is such
that continued feedback on performance is provided on an
ongoing basis.
Recommendation 1.7
A listed entity should:
(a) have and disclose a process for periodically evaluating
the performance of its senior executives; and
(b) disclose, in relation to each reporting period, whether
a performance evaluation was undertaken in the
reporting period in accordance with that process.
Partially
/YES
(a) The Board is responsible for evaluating the performance of
the Company’s senior executive on an annual basis. The
Board is responsible for evaluating the remuneration of the
Company’s senior executive on an annual basis. A senior
executive, for these purposes, means key management
personnel (as defined in the_Corporations Act 2001_(Cth))
other than a non-executive Director.
The applicable processes for these evaluations can be
found in the Company’s Corporate Governance Plan, which
is available on the Company’s website.
(b) The Company’s Corporate Governance Plan requires the
Company
to
disclose
whether
or
not
performance
evaluations were conducted during the relevant reporting
period. The Company intends to continue completing
performance evaluations in respect of the senior executives
(if any) for each financial year in accordance with the
applicable processes.
Principle 2: Structure the Board to add value

4

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
Recommendation 2.1
The Board of a listed entity should:
(a) have a nomination committee which:
(i)
has at least three members, a majority of whom
are independent Directors; and
(ii)
is chaired by an independent Director,
and disclose:
(iii) the charter of the committee;
(iv) the members of the committee; and
(v) as at the end of each reporting period, the
number of times the committee met throughout
the period and the individual attendances of the
members at those meetings; or
(b) if it does not have a nomination committee, disclose
that fact and the processes it employs to address
Board succession issues and to ensure that the Board
has the appropriate balance of skills, experience,
independence and knowledge of the entity to enable
it to discharge its duties and responsibilities effectively.
NO (a) The Company does not currently have a Nomination
Committee. The Company’s Nomination Committee Charter
provides for the creation of a Nomination Committee (if it is
considered it will benefit the Company), with at least three
members, a majority of whom are independent Directors,
and which must be chaired by an independent Director.
(b) The Company does not have a Nomination Committee as
the Board considers the Company will not currently benefit
from its establishment. In accordance with the Company’s
Board Charter, the Board carries out the duties that would
ordinarily be carried out by the Nomination Committee
under the Nomination Committee Charter, including the
following processes to address succession issues and to
ensure the Board has the appropriate balance of skills,
experience, independence and knowledge of the entity to
enable it to discharge its duties and responsibilities
effectively:
(ii)
devoting time at least annually to discuss Board
succession issues and updating the Company’s Board
skills matrix; and
(iii)
all Board members being involved in the Company’s
nomination process, to the maximum extent permitted
under the Corporations Act and ASX Listing Rules.
Recommendation 2.2
A listed entity should have and disclose a Board skill matrix
setting out the mix of skills and diversity that the Board
currently has or is looking to achieve in its membership.
YES Under the Nomination Committee Charter, the Board is required
to prepare a Board skill matrix setting out the mix of skills and
diversity that the Board currently has (or is looking to achieve)
and to review this at least annually against the Company’s Board
skills matrix to ensure the appropriate mix of skills and expertise is
present to facilitate successful strategic direction.
The Company has the following Board skill matrix setting out the

5

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION EXPLANATION
mix of skills and diversity that
No# of
Directors
Expertise
CEO/CFO/Senior Exec 2
Manufacturing / Engineering 2
Financially Knowledgeable 4
Industry Background 2
Sales and Marketing 3
Mergers and Acquisitions 2
Competencies
Strategic Leadership 4
Vision and Mission 4
Networking 4
Governance 3
Recommendation 2.3 (a) The Board Charter requires the disclosure of the names of

6

2658-02/1491643_2

  • RECOMMENDATIONS (3[RD] EDITION) COMPLY EXPLANATION A listed entity should disclose: YES Directors considered by the Board to be independent. The Company will disclose those Directors it considers to be

  • (a) the names of the Directors considered by the Board to independent in its Annual Report and on its ASX website. The

  • be independent Directors; Board considers that currently two (2) Directors are

  • (b) if a Director has an interest, position, association or independent.

  • (b) if a Director has an interest, position, association or relationship of the type described in Box 2.3 of the ASX Corporate Governance Principles and Recommendation (3rd Edition), but the Board is of the opinion that it does not compromise the independence of the Director, the nature of the interest, position, association or relationship in question and an explanation of why the Board is of that opinion; and

  • (b) There are two independent Directors who fall into this category, Mr Peter Torre and Mr Mike Bailey.

  • (c) The Company’s Annual Report will disclose the length of service of each Director, as at the end of each financial year.

(c) the length of service of each Director

Recommendation 2.4

A majority of the Board of a listed entity should be NO independent Directors.

The Company’s Board Charter requires that, where practical, the majority of the Board should be independent.

The Board currently comprises a total of five (5) directors, of which 2 are considered to be independent. As such, independent directors are not currently an independent majority of the Board.

The Board does not currently consider an independent majority of the Board to be appropriate given:

  • (a) the current nature of the Company’s business means the Company only needs a small Board of five(5) Directors;

  • (b) the Company considers currently only one Director need to be an executive Director for the Company to be effectively managed;

  • (c) based on the Company’s size and business operation on listing, the Directors believe that they are able to objectively analyse and deal with issues that may present in the best interests of all stakeholders; and

7

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
(d) the Directors consider that the Board collectively possess the
skill and commitment necessary to enable the proper and
effective discharge of its fiduciary duties.
Recommendation 2.5
The Chair of the Board of a listed entity should be an
independent Director and, in particular, should not be the
same person as the CEO of the entity.
NO The Board Charter provides that, where practical, the Chair of
the Board should be an independent Director and should not be
the CEO/Managing Director.
The Chair of the Company is not an independent Director and is
not the CEO/Managing Director.
The Chair of the Company, is not considered independent due
to his shareholding in the Company. The Board believes that this
is acceptable based on the current nature of the Company’s
business and the Board’s ability to effectively manage the
Company with a small board of five (5) Directors.
Recommendation 2.6
A listed entity should have a program for inducting new
Directors
and
providing
appropriate
professional
development opportunities for continuing Directors to
develop and maintain the skills and knowledge needed to
perform their role as a Director effectively.
YES In accordance with the Company’s Board Charter, the Board is
responsible for the approval and review of induction and
continuing professional development programs and procedures
for Directors to ensure that they can effectively discharge their
responsibilities. The Company Secretary is responsible for
facilitating inductions and professional development.
Principle 3: Act ethically and responsibly
Recommendation 3.1
A listed entity should:
(a) have a code of conduct for its Directors, senior
executives and employees; and
(b) disclose that code or a summary of it.
YES (a) The Company’s Corporate Code of Conduct (which forms
part of the Company’s Corporate Governance Plan) applies
to
the
Company’s
Directors,
senior
executives
and
employees.
(b) The Company’s Corporate Code of Conduct is available on
the Company’s website.
Principle 4: Safeguard integrity in financial reporting

8

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
Recommendation 4.1
The Board of a listed entity should:
(a) have an audit committee which:
(i)
has at least three members, all of whom are
non-executive Directors and a majority of
whom are independent Directors; and
(ii)
is chaired by an independent Director, who is
not the Chair of the Board,
and disclose:
(iii)
the charter of the committee;
(iv)
the relevant qualifications and experience of
the members of the committee; and
(v)
in relation to each reporting period, the number
of times the committee met throughout the
period and the individual attendances of the
members at those meetings; or
(b) if it does not have an audit committee, disclose that
fact and the processes it employs that independently
verify and safeguard the integrity of its financial
reporting, including the processes for the appointment
and removal of the external auditor and the rotation of
the audit engagement partner.
NO (a) The Company does not currently have an Audit and Risk
Committee. The Audit and Risk Committee Charter provides
for the creation of an Audit and Risk Committee (if it is
considered it will benefit the Company), with at least three
members, all of whom must be independent Directors, and
which must be chaired by an independent Director who is
not the Chair.
(b) The Company does not currently have an Audit and Risk
Committee as the Board considers the Company will not
currently benefit from its establishment. In accordance with
the Company’s Board Charter, the Board carries out the
duties that would ordinarily be carried out by the Audit and
Risk Committee under the Audit and Risk Committee Charter
including the following processes to independently verify
and safeguard the integrity of its financial reporting,
including the processes for the appointment and removal of
the external auditor and the rotation of the audit
engagement partner:
(i)
the Board devotes time at annual Board meetings to
fulfilling the roles and responsibilities associated with
maintaining the Company’s internal audit function and
arrangements with external auditors; and
(ii)
all members of the Board are involved in the
Company’s audit function to ensure the proper
maintenance of the entity and the integrity of all
financial reporting.
Recommendation 4.2
The Board of a listed entity should, before it approves the
entity’s financial statements for a financial period, receive
from its CEO and CFO a declaration that the financial
YES The Company’s Audit and Risk Committee Charter requires the
CEO and CFO (or, if none, the person(s) fulfilling those functions)
to provide a sign off on these terms.
The Company obtains a sign off on these terms for each of its

9

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
records of the entity have been properly maintained and
that the financial statements comply with the appropriate
accounting standards and give a true and fair view of the
financial position and performance of the entity and that
the opinion has been formed on the basis of a sound
system of risk management and internal control which is
operating effectively.
financial statements in each financial year.
Recommendation 4.3
A listed entity that has an AGM should ensure that its
external auditor attends its AGM and is available to
answer questions from security holders relevant to the
audit.
YES The Company’s Corporate Governance Plan provides that the
Board must ensure the Company’s external auditor attends its
AGM and is available to answer questions from security holders
relevant to the audit.
Principle 5: Make timely and balanced disclosure
Recommendation 5.1
A listed entity should:
(a) have a written policy for complying with its continuous
disclosure obligations under the Listing Rules; and
(b) disclose that policy or a summary of it.
YES (a) The Board Charter provides details of the Company’s
disclosure policy. In addition, the Corporate Governance
Plan details the Company’s disclosure requirements as
required by the ASX Listing Rules and other relevant
legislation.
(b) The Corporate Governance Plan, which incorporates the
Board Charter, is available on the Company website.
Principle 6:Respect the rights of security holders
Recommendation 6.1
A listed entity should provide information about itself and
its governance to investors via its website.
YES Information about the Company and its governance is available
in the Corporate Governance Plan which can be found on the
Company’s website.
Recommendation 6.2
A listed entity should design and implement an investor
The Company has adopted a Shareholder Communications
Strategy which aims to promote and facilitate effective two-way

10

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
relations
program
to
facilitate
effective
two-way
communication with investors.
YES communication with investors. The Strategy outlines a range of
ways in which information is communicated to shareholders and
is available on the Company’s website as part of the Company’s
Corporate Governance Plan.
Recommendation 6.3
A listed entity should disclose the policies and processes it
has in place to facilitate and encourage participation at
meetings of security holders.
YES Shareholders are encouraged to participate at all general
meetings and AGMs of the Company. Upon the despatch of any
notice of meeting to Shareholders, the Company Secretary shall
send out material stating that all Shareholders are encouraged
to participate at the meeting.
Recommendation 6.4
A listed entity should give security holders the option to
receive communications from, and send communications
to, the entity and its security registry electronically.
YES The Shareholder Communication Strategy provides that security
holders can register with the Company to receive email
notifications when an announcement is made by the Company
to the ASX, including the release of the Annual Report, half yearly
reports and quarterly reports. Links are made available to the
Company’s website on which all information provided to the ASX
is immediately posted.
Shareholders queries should be referred to the Company
Secretary at first instance.
Principle 7: Recognise and manage risk
Recommendation 7.1
The Board of a listed entity should:
(a) have a committee or committees to oversee risk, each
of which:
(i)
has at least three members, a majority of whom
are independent Directors; and
(ii)
is chaired by an independent Director,
Partially /
YES
(a) The Company does not have an Audit and Risk Committee.
The Company’s Corporate Governance Plan contains an
Audit and Risk Committee Charter that provides for the
creation of an Audit and Risk Committee (if it is considered it
will benefit the Company), with at least three members, all of
whom must be independent Directors, and which must be
chaired by an independent Director.
A copy of the Corporate Governance Plan is available on
the Company’s website.

11

2658-02/1491643_2

RECOMMENDATIONS (3[RD] EDITION) COMPLY EXPLANATION

and disclose:

  • (iii) the charter of the committee; (iv) the members of the committee; and

  • (v) as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or

  • (b) if it does not have a risk committee or committees that satisfy (a) above, disclose that fact and the process it employs for overseeing the entity’s risk management framework.

  • (b) The Company does not have an Audit and Risk Committee as the Board consider the Company will not currently benefit from its establishment. In accordance with the Company’s Board Charter, the Board carries out the duties that would ordinarily be carried out by the Audit and Risk Committee under the Audit and Risk Committee Charter including the following processes to oversee the entity’s risk management framework:

  • (i) the Board devotes time at monthly Board meetings to fulfilling the roles and responsibilities associated with overseeing risk and maintaining the entity’s risk management framework and associated internal compliance and control procedures.

Recommendation 7.2 (a) The Audit and Risk Committee Charter requires that the
The Board or a committee of the Board should:
(a) review the entity’s risk management framework with
YES Board should, at least annually, satisfy itself that the
Company’s risk management framework continues to be
sound.
management at least annually to satisfy itself that it
continues to be sound; and
(b) disclose in relation to each reporting period, whether
such a review has taken place.
(b) The Company’s Corporate Governance Plan requires the
Company to disclose at least annually whether such a
review of the company’s risk management framework has
taken place. A review was undertaken during the year
ended 30 June 2019.
Recommendation 7.3 The Audit and Risk Committee Charter provides for the Board to
A listed entity should disclose: Partially / monitor the need for an internal audit function.
(a) if it has an internal audit function, how the function is
structured and what role it performs; or
(b) if it does not have an internal audit function, that fact
and the processes it employs for evaluating and
continually improving the effectiveness of its risk
Yes The Company does not presently have an internal audit function.
This is mitigated by the Board, implementing the matters set out
above in respect to risk and management, and having a primary
responsibility to ensure that:

The Company presents and publishes accounts, which

12

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
management and internal control processes. present a true and fair view of its results and financial
position;

The accounting methods adopted are appropriate to the
Company and consistently applied in accordance with
relevant accounting standards and the applicable laws;
and

The appointment and performance of the external
auditor
is
appropriately
monitored
to
ensure
independence and the serving of the interests of
shareholders.
This requirement is assisted by the formal sign off from the CEO
and CFO as noted above.
Recommendation 7.4
A listed entity should disclose whether it has any material
exposure
to
economic,
environmental
and
social
sustainability risks and, if it does, how it manages or intends
to manage those risks.
YES The Audit and Risk Committee Charter requires the Board to assist
management determine whether the Company has any
material exposure to economic, environmental and social
sustainability risks and, if it does, how it manages or intends to
manage those risks.
The Company’s Corporate Governance Plan requires the
Company to disclose whether it has any material exposure to
economic, environmental and social sustainability risks and, if it
does, how it manages or intends to manage those risks. The
Company disclosed this information in its Prospectus lodged with
the ASX in the first half of FY2017. It will continue to disclose this
information as part of its continuous disclosure obligations if there
are any material changes to the risks identifies in that Prospectus.
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1 Partially (a) The Company does not have a Remuneration Committee.
The Company’s Corporate Governance Plan contains a

13

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
The Board of a listed entity should:
(a) have a remuneration committee which:
(i)
has at least three members, a majority of whom
are independent Directors; and
(ii)
is chaired by an independent Director,
and disclose:
(iii)
the charter of the committee;
(iv)
the members of the committee; and
(v)
as at the end of each reporting period, the
number of times the committee met throughout
the period and the individual attendances of
the members at those meetings; or
(b) if it does not have a remuneration committee, disclose
that fact and the processes it employs for setting the
level and composition of remuneration for Directors
and senior executives and ensuring that such
remuneration is appropriate and not excessive.
/YES Remuneration Committee Charter that provides for the
creation of a Remuneration Committee (if it is considered it
will benefit the Company), with at least three members, a
majority of whom must be independent Directors, and which
must be chaired by an independent Director.
(b) The Company does not have a Remuneration Committee as
the Board considers the Company will not currently benefit
from its establishment. In accordance with the Company’s
Board Charter, the Board carries out the duties that would
ordinarily be carried out by the Remuneration Committee
under the Remuneration Committee Charter including the
following processes to set the level and composition of
remuneration for Directors and senior executives and
ensuring that such remuneration is appropriate and not
excessive:
(i)
the Board devotes time at the annual Board meeting to
assess the level and composition of remuneration for
Directors and senior executives.
Recommendation 8.2
A listed entity should separately disclose its policies and
practices regarding the remuneration of non-executive
Directors and the remuneration of executive Directors and
other senior executives and ensure that the different roles
and responsibilities of non-executive Directors compared
to executive Directors and other senior executives are
reflected
in
the
level
and
composition
of
their
remuneration.
YES The Company’s Corporate Governance Plan requires the Board
to disclose its policies and practices regarding the remuneration
of Directors and senior executives, which is disclosed on the
Company’s website and in the Remuneration Report contained
within the Director Report.
Recommendation 8.3
A listed entity which has an equity-based remuneration
NO (a) The Company does have an equity based remuneration
scheme, being the Incentive Option Scheme adopted 23

14

2658-02/1491643_2

RECOMMENDATIONS (3RD EDITION) COMPLY EXPLANATION
scheme should:
(a) have a policy on whether participants are permitted to
enter into transactions (whether through the use of
derivatives or otherwise) which limit the economic risk
of participating in the scheme; and
(b) disclose that policy or a summary of it.
September 2016.
The Company does not have a policy on whether
participants are permitted to enter into transactions (whether
through the use of derivatives or otherwise) which limit the
economic risk of participating in the scheme.

15

2658-02/1491643_2