Annual Report 2010 - UnderCoverWear

Continued
7.3 Risk Management Accountability
declarations required under section 295A of the
Corporations Act 2001 and the relevant assurances
required under the recommendation 7.3 of the revised
ASX Corporate Governance Council principles.
The company has measures in place to mitigate risk in
the following areas:
n Security of data and IT systems is maintained by
daily back-up of transactions, with the information
stored both on-site and off-site. Data is stored on a
transactional basis and can be restored to any point
in time;
n Security of the head office building is maintained by
back to base alarm and patrolled regularly after hours;
n Raw materials for 70% of the finished goods
inventory balance are held off-site;
n Fire and bomb threat evacuation procedures are
documented and practice drills are performed on
regular basis. The fire system is testing weekly, and
maintained with a direct link to the closest fire
brigade depot. The Annual Fire Safety Statement,
(Form 15A) is signed off and lodged each year;
n Insurance policies for risk are maintained for loss of
income, property and associated liabilities and form
part of the company’s disaster recovery strategy.
Principle 8: Remunerate fairly and
responsibly
8.1 Remuneration Committee
The Board has an established Remuneration
Committee, currently comprising one non-executive
director and one executive director. Their names
and attendance at meetings of the Committee are
set out in the Directors’ Report. The Remuneration
Committee is chaired by the board chairman. The
Remuneration Committee of the Board of Directors
is responsible for recommending and reviewing
remuneration arrangements for the directors, the
chief executive officer and the senior executive
team. The Remuneration Committee assesses
the appropriateness of the nature and amount of
remuneration of such officers on a periodic basis
by the reference to relevant employment market
conditions with the overall objective of ensuring
maximum stakeholder benefit from the retention of
a high quality Board and executive team. Executive
management staff are given the opportunity to
receive their base remuneration in a variety of forms
including cash and fringe benefits such as motor
vehicles and expense payment plans. It is intended
that the manner of payment chosen will be optimal
for the recipient without increasing the total cost for
the Company. A summary of the Committee’s role,
rights, responsibilities and membership requirements is
available on the Company’s website.
8.2 Structure of Remuneration
The structure of non-executive directors’
remuneration and that of executives is set out in the
relevant section of the Directors’ Report. Details
of the nature and amount of each element of the
remuneration of each director of the Company and
each of the five executive officers of the Company
and the consolidated entity receiving the highest
remuneration for the financial year are disclosed in the
relevant section of the Directors’ Report.
Other Information
Further information relating to the company’s corporate
governance practices and policies has been made
publicly available on the company’s web site at
www.UnderCoverWear.com.au.
FINANCIAL
STATEMENT
for the year ended 30 June 2010
22 UnderCoverWear
23