RFG Annual Report 2007 - Retail Food Group

06/07
Annual Report
8
Retail Food Group Annual Report
Corporate Governance Statement
The following Corporate Governance Statement sets out the
Company’s corporate governance practices.
Unless otherwise disclosed herein, all principles of good corporate
governance and the best practice recommendations of the ASX
Corporate Governance Council have been adopted by the Board
and applied from the period of the listing of the Company on ASX
to 30 June 2007.
Responsibility for the Company’s proper corporate governance
rests with the Board.
The Board’s guiding principle in meeting its proper corporate
governance responsibility is to act honestly, conscientiously and fairly,
in accordance with the law, in the interests of Retail Food Group’s
shareholders (with a view to building sustainable value for them)
and those of employees and other stakeholders.
The Board’s broad function is to:
• chart strategy and set fi nancial targets for the Company;
• monitor the implementation and execution of strategy and
performance against fi nancial targets;
• appoint and oversee the performance of executive management
and generally to take and fulfi l an effective leadership role in relation
to the Company.
Power and authority in certain areas is specifi cally reserved to the
Board consistent with its function as outlined above.
These areas include:
• composition of the Board itself including the appointment
and removal of Directors;
• oversight of the Company including its control and
accountability system;
• appointment and removal of the CEO;
• ratifi cation of the appointment and where appropriate the removal
of the CEO and the Company Secretary;
• reviewing and overseeing systems of risk management and internal
compliance and control, codes of ethics and conduct, and legal
and statutory compliance;
• monitoring senior management’s performance and implementation
of strategy;
• approving and monitoring fi nancial and other reporting and the
operation of Committees.
The Board comprises four Directors two of which are non-executive
Directors and are independent. The names of independent Directors
of the Company are:
• John Cowley (Chairman)
• Colin Archer.
When determining whether a non-executive Director is independent the
Director must not fail any of the following materiality thresholds:
• less than 10% of Company shares are held by the Director and any
entity or individual directly or indirectly associated with the Director;
• no sales are made to or purchases made from any entity or
individual directly or indirectly associated with the Director; and
• none of the Director’s income or the income of an individual or
entity directly or indirectly associated with the Director is derived
from a contract with any member of the economic entity other than
income derived as a Director of the entity.
The names of the Directors in offi ce, their appointment date and role at
the date of this Annual Report are:
Name Role Appointed
John Cowley
Anthony (Tony)
Alford
Nigel Nixon
Colin Archer
Chairman and
Independent
Non-Executive Director
Managing Director and
Chief Executive Offi cer
Executive Director and
Corporate Counsel
Independent
Non-Executive Director
13 October 2005
28 October 2003
29 November 2003
(re-elected 29 November
2006 following
retirement by rotation)
12 April 2006
(re-elected 29 November
2006 following
retirement by rotation)
The skills, experience and expertise relevant to the position of each
Director and their term of offi ce are detailed in the Directors’ Report.
The Board has a charter (which is kept under review and amended
from time to time as the Board considers appropriate) to give formal
recognition to the Board’s corporate governance practices. The charter
sets out various other matters that are important for effective corporate
governance including the following:
• a detailed defi nition of ‘independence’;
• a framework for the identifi cation of candidates for appointment to
the Board and their selection;
• a framework for individual performance review and evaluation;
• proper training to be made available to Directors both at the time of
their appointment and on an on-going basis;
• basic procedures for meetings of the Board and its Committees—
frequency, agenda, minutes and private discussion of management
issues among non-executive Directors;
• ethical standards and values—formalised in a detailed code of
ethics and values;
• dealings in securities—formalised in a detailed code for securities
transactions designed to ensure fair and transparent trading by
Directors and senior management and their associates;
• communications with shareholders and the market.
The number of Board meetings held and the attendance of the
Directors during FY2007 is detailed in the Directors’ Report.
With the prior approval of the Chairman, which may not be
unreasonably withheld or delayed, each Director has the right to
seek independent legal and other professional advice concerning any
aspect of the Company’s operations or undertakings in order to fulfi l
their duties and responsibilities as Directors. Any costs incurred are
borne by the Company.