Page 39 - Sun Resources 2014 Annual Report

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.
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: Remuneration
Committee
The remuneration committee at 30 June 2014 consists of
the following Non-Executive Directors.
Mr D Kestel (Non-Executive Director)
Dr W G Martinick (Non-Executive Director)
The remuneration committee operates in accordance
with its charter. The remuneration committee advises
the Board on remuneration and incentive policies and
practices generally, and 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.
These are described more fully as follows:
Departure (from
Recommendation)
Explanation
1.1 No statements of matters
reserved for the Board
or delegated to senior
management are publicly
available.
The Board considers
that the Company is not
of a size to warrant this
disclosure.
2.2 The Chairperson should
be an Independent
Director
Professor Plimer was
nominated to the Board
by a subsidiary of
Hancock Prospecting Pty
Ltd
2.4 There is no separate
nomination committee.
The full Board considers
those matters that
would usually be the
responsibility of a
nomination committee.
The Board considers that
no efficiencies or other
bene ts would be gained
by establishing a separate
nomination committee.
STATEMENT OF CORPORATE GOVERNANCE PRACTICES
SUN RESOURCES ANNUAL REPORT 2014  37