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Corporate Governance

General risks

Economic conditions

General economic conditions may affect interest rates,

inflation rates and other economic variables. Movements

in these factors may benefit or adversely affect the

Company. Movement in general economic conditions may

also affect companies with which the Company conducts

its business, which may also affect the Company’s


Changes to laws and regulations

The introduction of new policies, legislation or

amendments to existing policies or legislation by

governments or the interpretation of those laws as

noted above could impact adversely on the assets,

operations and ultimately financial performance of

the Company.

Principle 8: Remunerate fairly

and responsibly

A listed entity should pay director remuneration sufficient

to attract and retain high quality directors and design its

executive remuneration to attract, retain and motivate high

quality senior executives and to align their interests with

the creation of value for security holders.

It is the Company’s objective to provide maximum

stakeholder benefit from the retention of a high quality

Board and executive team by remunerating Directors and

key executives fairly and appropriately with reference to

relevant employment market conditions. The Managing

Director’s and key executives’ emoluments are structured

to retain and motivate executives by offering a competitive

base salary together with long term performance

incentives through shares and/or options which allow

executives to share in the success of the Company.

The Board will assess the appropriateness of the

nature and amount of emoluments of such officers on

a periodic basis by reference to relevant employment

market conditions with the overall objective of ensuring

maximum stakeholder benefit.

Where long term incentives are provided through shares

and/or options, the Company does not permit participants

to enter into arrangements which limit the economic risk of

participating in the scheme.

The Board will collectively set policies for senior executive

remuneration including the Chief Executive Officer and

review from time to time as appropriate. The Board will

also review and approve the recommendations of the

Chief Executive Officer on the remuneration of senior

executives and will set policies for non-executive director

remuneration and determine the level of their remuneration

with the assistance of external consultants as appropriate.

A performance evaluation of the Company’s senior

executives was undertaken in the period.

The Company currently has two Non-executive

Directors and a Managing Director. The Company’s

Managing Director does not receive Directors’ fees and

his remuneration package is formalised in a service

agreement. The Non-executive Directors’ maximum

aggregate remuneration as approved by shareholders

is currently US$300,000 per annum and is set at a

level that compensates the directors for their significant

time commitment in overseeing the progression of the

Company’s business plan.

There are no retirement benefits offered to Non-executive

Directors other than statutory superannuation. For a full

discussion of the Company’s remuneration philosophy and

framework and the remuneration received by Directors

and Executives in the current period, please refer to the

Remuneration Report, which is contained within the

Directors’ Report.