Principles of Corporate Governance
The Company is not required to comply with the UK Corporate Governance Code or the Corporate Governance Code for Small and Mid-Size Quoted Companies 2013, as published by the Quoted Companies Alliance. However, the Directors recognise the importance of sound corporate governance and the Board intends so far as is practicable for a company of its size to implement certain corporate governance recommendations. Details are provided below:
The role of the Board is to provide entrepreneurial leadership of the Company within a framework of prudent and effective controls, which enables risk to be assessed and managed. The Board sets the Company's strategic aims, ensures that the necessary financial and human resources are in place for the Company to meet its objectives and reviews management performance. The Board sets the Company's values and standards and ensures that its obligations to its shareholders and others are understood and met.
The Board comprises of the Non-Executive Chairman and two other Non-Executive Directors.
The Board is responsible to shareholders for the proper management of the Group. To enable the Board to discharge its duties, all Directors have full and timely access to all relevant information and there is a procedure for all Directors, in furtherance of their duties, to take independent professional advice, if necessary, at the expense of the Group. The Board has a formal schedule of matters reserved to it. It is responsible for overall group strategy, approval of major capital expenditure projects and consideration of significant financing matters. The Board met on six separate occasions in the year.
Appointment and Induction of Directors
The composition of the Board is kept under review with the aim of ensuring that the Directors collectively possess the necessary skills and experience to direct the Group's business activities.
Board CommitteesThe Board delegates certain matters to its two principal committees, which deal with remuneration and audit.
The Remuneration Committee comprises Jon Pither (Chair) and Roy Stanley. The Remuneration Committee determines and agrees with the Board the framework of remuneration for the Executive Directors. The Company currently does not have any Executive Directos. The Board itself determines the remuneration of the Non-Executive Directors.
There was one remuneration committee meeting in the period which was fully attended. The report on Directors' remuneration is set out in the Company's Report and Financial statements on pages 9 to 10.
The Audit Committee comprised the Non-Executive Directors Martin Groak (Chair) and Jon Pither.
The Audit Committee is responsible for:
- Reviewing the scope of external audit, to receive regular reports from Baker Tilly UK Audit LLP.
- Reviewing the half-yearly and annual accounts prior to their recommendation to the Board.
- Reviewing the Group's internal financial controls and risk management systems and processes.
- Making recommendations on the appointment, re-appointment and removal of external auditors and approving the terms of engagement.
- Reviewing the nature of the work and level of fees for non-audit services provided by the external auditors.
- Assessing the independence, objectivity and effectiveness of the external auditor.
The committee met on two occasions during the year and they were fully attended.
The Board has overall responsibility for the Group's system of internal control and risk management and for reviewing the effectiveness of this system. Such a system can only be designed to manage, rather than eliminate, the risk of failure to achieve business objectives and can therefore only provide reasonable, and not absolute assurance against material misstatement or loss.
The Board is of the view that, due to the current size and composition of the Group, that it is not necessary to establish an internal audit function.
Relations with Shareholders
The Company values its dialogue with both institutional and private investors. Effective two-way communication with fund managers, institutional investors and analysts is actively pursued and this encompasses issues such as performance, policy and strategy.
Private investors are encouraged to participate in the Annual General Meeting, at which the Chairman presents a review of the results and comments on current business activity. The Chairmen of the Audit and Remuneration Committees will be available at the Annual General Meeting to answer any shareholder questions.
Share Dealing Code
The Company has adopted a code for directors' dealings appropriate for a company whose ordinary shares are admitted to trading on AIM. The form of this code is substantially similar to the Model Code.
12 June 2014