Page 42 - Sun Resources Annual Report 2013

STATEMENT OF CORPORATE GOVERNANCE PRACTICES
Principle 7:
Recognise and manage risk
The Board, through the audit committee, is responsible
for ensuring there are adequate policies in relation to risk
management, compliance and internal control systems. In
summary, the Company policies are designed to ensure
strategic, operational, legal, reputational and financial risks
are identified, assessed, effectively and efficiently managed
and monitored to enable achievement of the Group’s
business objectives.
Considerable importance is placed on maintaining a
strong control environment. There is an organisation
structure with clearly drawn lines of accountability and
delegation of authority.
The Company risk management policy and the operation of
the risk management and compliance system are executed
by the CEO in collaboration with the audit committee.
Privacy
The Company has resolved to comply with the National
Privacy Principles contained in the Privacy Act 1988, to
the extent required for a company the size and nature of
Sun Resources.
The environment, health and safety
management system (EHSMS)
The Company recognises the importance of environmental
and occupational health and safety (“OHS”) issues and
is committed to the highest level of performance. To
help meet this objective the EHSMS was established to
facilitate the systematic identification of environmental
and OHS issues and to ensure they are managed in a
structured manner. This system has been operating for a
number of years and allows the Company to:
• Monitor its compliance with all relevant legislation.
• Continually assess and improve the impact of its
operations on the environment.
• Encourage employees to actively participate in the
management of environmental and OHS issues.
• Work with trade associations representing the Group’s
businesses to raise standards.
• Use energy and other resources efficiently, and
• Encourage the adoption of similar standards by
the Group’s principal suppliers, contractors and
distributors.
Information on compliance with significant environmental
regulations is set out in the Directors’ Report.
Corporate reporting
The Managing Director and CFO have made the following
certifications to the Board:
• that the Company’s financial reports are complete and
present a true and fair view, in all material aspects,
of the financial condition and operational results of
the Company and Group and are in accordance with
relevant accounting standards.
• that the above statement is founded on a sound
system of risk management and internal compliance
and control which implements the policies adopted by
the Board and that the Company’s risk management
and internal compliance and control is operating
efficiently and effectively in all material aspects in
relation to financial reporting risks.
The categories of risk reported in the annual report are:
market risk, credit risk and liquidity risk.
Principle 8:
Remunerate fairly and responsibly
Remuneration committee
The remuneration committee at 30 June 2013 consists
of the following non-executive Directors, the majority of
whom are independent with an independent Chairperson.
Mr S J Mann (Independent Chairperson)
(Retired 30 June 2013)
Mr D Kestel (Non-Executive Director)
Mr J D Kenny (Non-Executive Director)
Dr P Linsley (Non-Executive Director)
(Retired 30 June 2013)
Dr W G Martinick (Non-Executive Director)
Details of these Directors attendance at remuneration
committee meetings are set out in the Directors’ Report
on page 32.
The remuneration committee operates in accordance
with its charter which is available on the Company
website. The remuneration committee advises the Board
on remuneration and incentive policies and practices
generally. It makes specific recommendations on
remuneration packages and other terms of employment
for executive Directors, other senior executives and non-
executive Directors.
Each member of the senior executive team signs a formal
employment contract at the time of their appointment
covering a range of matters including their duties, rights,
responsibilities and any entitlements on termination.
Further information on Directors and executives
remuneration, including principles used to determine
remuneration, is set out in the Directors’ Report under
the heading “Remuneration Report”. In accordance with
Group policy, participants in equity-based remuneration
plans are not permitted to enter into any transactions that
would limit the economic risk of options or other unvested
entitlements.
Explanations for departures from best practice
recommendations under the “If Not, Why Not” approach.
As at the end of the reporting period, there are a few
recommendations of the ASX Corporate Governance
Council that the Company does not follow.
SUN RESOURCES ANNUAL REPORT 2013 40