The Board is committed to maintaining high standards of corporate governance. The Listing Rules of the Financial Reporting Council incorporate the UK Corporate Governance Code, which sets out the principles of good governance, and the Code of Best Practice for Listed companies. The UK Corporate Governance Code does not apply to AIM companies.
However, shareholders expect companies in which they invest to be properly governed and many AIM companies use the Corporate Governance Code for Small and Mid-Size Quoted Companies issued by the Quoted Companies Alliance (an independent organisation). The Company has not adopted a code, but the Company’s corporate governance procedures take due regard of the principles of good governance set out on the QCA Code in relation to the size and the stage of development of the Company.
Role of the Board
The Board has a responsibility to govern the Company rather than to manage it and in doing so act in the best interests of the Company as a whole. Each member of the Board is committed to spending sufficient time to enable them to carry out their duties as a Director. Non-Executive Directors receive formal letters of appointment setting out the key terms, conditions and expectations of their appointment.
Matters Reserved for the Board
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 Executive Director who are charged with consulting the Board on all significant financial and operational matters. The Board approved the annual budget and amendments to it, and approves issues of shares or other securities, and all significant acquisitions and disposals.
Board of Directors
The Board of Directors currently comprises four Directors, one of whom is Executive Chairman & Chief Executive Officer. There is one additional Executive Director and there are two Non-Executive Directors who provide professional services to the Company and who therefore do not qualify as independent in terms of the UK Corporate Governance Code, but are considered by the Company to have independence of character and judgement.
The Directors are of the opinion that the Board comprises a suitable balance and that the recommendations of the UK Corporate Governance Code have been implemented to an appropriate level. The Board, through the Executive Chairman and the Non-Executive Directors, maintains regular contact with its advisers and public relations consultants in order to ensure that the Board develops an understanding of the views of major shareholders about the Company.
All Directors have access to the advice of the Company’s solicitors and the Company Secretary, necessary information is supplied to the Directors on a timely basis to enable them to discharge their duties effectively and all Directors have access to independent professional advice, at the Company’s expense, as and when required.
The Board acknowledges that, in having an Executive Chairman who is also the Chief Executive Officer, best practice, as stated in the listing rules of the Financial Services Authority applicable to the main market, is not being followed. However, it is the opinion of the Board as a whole that the current arrangements are appropriate to the Company and Group at this stage of development.
The Board meets regularly throughout the year as deemed appropriate.
Description of Roles
The Chairman & Chief Executive Officer is the leading representative of the Company presenting the Company’s aims and policies to the outside world. His responsibilities include taking the Chair at Board Meetings and General Meetings, where he is responsible for ensuring the appropriate supply of information. He is also responsible for leading the development and execution of the Company’s long-term strategy, overseeing matters pertaining to the running of the Company and ensuring that the Company meets all legal requirements and corporate responsibilities. The Company considers that having the same person as Chairman and Chief Executive Officer is appropriate to the Company and Group at its current stage of development, and that sufficient experience and compliance structures exist within the Company to ensure that the governance functions that would be part of an independent Chairman’s responsibility are carried out. Independent Directors will sit on the Audit and Remuneration Committees and will be responsible for reporting to the full board their conclusions, for liaising with the risk committees and for keeping up to date with the work of the Corporate Governance, Risk and Health and Safety Committees.
Non-Executive Appointment Terms
The terms and conditions of the appointment of Non-Executive Directors is available here.
The Board has established the following committees, each of which has its own terms of reference:
The Audit Committee considers the Group’s financial reporting, including accounting policies, and internal financial controls. It is responsible for ensuring that the financial performance of the Group is properly monitored and reported on. The Audit Committee meets at least twice a year, once with the auditor, and is comprised of Michael Nott, Non-Executive Director, as Chairman and Sam Quinn, Non-Executive Director. The Executive Chairman and senior personnel attend the Committee as requested by the Committee.
It is the responsibility of the Committee to review the annual and half-yearly financial statements, to ensure that they adequately comply with appropriate accounting policies, practices and legal requirements, to recommend to the Board their adoption and to consider the independence of and to oversee the management’s appointment of the external auditor.
The Remuneration Committee is responsible for making recommendations to the Board on Executive Directors’ remuneration. It comprises two suitably qualified Non-Executive Directors: Michael Nott as Chairman and Sam Quinn. The Executive Chairman and other senior personnel attend meetings as requested by the Committee which meets at least twice a year.
The Board has not established a Nominations Committee. Matters that would normally be dealt with by the Nominations Committee will be discussed by the Remuneration Committee and referred to the Board as a whole.
The Board receives, via both ongoing communication and board meetings, all information relating to the Company and its projects and investments. The Audit Committee considers financial reporting, and the Remuneration Committee receives information pertaining to the Executive Directors’ remuneration.
Summary of Strategy
Please click here for the Company’s strategy summary.
The Company’s website includes all governance-related material. For annual and interim reports, click here. For notices of general meetings, click here. Results of general meetings are issued by RNS here.
Role of External and Internal Advisors
The Remuneration Committee seeks evidence from independent studies and from appropriate comparators in arriving at its recommendations. In structuring options and other incentives, the Company consults external specialist advisors.
Ethical Decision Making
In accordance with legal requirements and agreed ethical standards, Directors and all staff have agreed to maintain confidentiality of non-public information except where disclosure is authorised or legally mandated.
In accordance with the provisions of the Bribery Act, all Directors and staff have been informed and have acknowledged that it is an offence under the Act to engage in any form of bribery. The Company has an anti-bribery and whistleblowing policy in force.
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 Group and to ensure the reliability of financial information for both internal use and external publication. Whilst they are aware that no system can provide absolute assurance against material misstatement or loss, in the light of increased activity and further development of the Group, continuing reviews of internal controls will be undertaken to ensure that they are adequate and effective.
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, loans and sales of investments. The Group 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.
Securities Trading and Share Dealing
In accordance with the AIM Rules and MAR, the Board has adopted the 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 “close periods” (30 days prior to the publication of the interim and final audited accounts), trading can occur provided the relevant individual has received the appropriate prescribed clearance. All Directors and staff are required to advise the Executive Chairman, or other designated person, of their intention to undertake a transaction in the Company’s shares. Such a transaction will be prohibited if the Director or employee is considered to be in possession of non-public material information.
The Company is subject to the UK City Code on Takeovers and Mergers.
Relations with Shareholders
The Board recognises that it is accountable to shareholders for the performance and activities of the Company and Group and to this end 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 where descriptions of the Group projects are available and updated regularly. In addition, copies of press comments, broker notes, video updates and presentations are available. On the website, shareholders may sign up to receive news releases directly by e-mail.
The Board views the Annual General Meeting as an important forum for communication between the Company and its shareholders and encourages shareholders to express their views on the Group’s business activities and performance. The Company has held an open day for shareholders to visit the Company offices and gain an insight into the Company’s activities.
The Company considers that having the same person as Chairman and Chief Executive Officer is appropriate to the Company and Group at its current stage of development, and that sufficient experience and compliance structures exist within the Company to ensure that the governance functions that would be part of an independent Chairman’s responsibility are carried out.
Results of Shareholder Voting
From the Annual General Meeting held 30th December 2016 at 11am, all resolutions (which can be read in the Annual Report under Notice of Meeting) were duly passed.