frontier resources ltd - Frontierresources.com.au

CORPORATE GOVERNANCE STATEMENTPRINCIPLE 6: RESPECT THE RIGHTS OF SHAREHOLDERSRecommendation 6.1: Design and disclose a communications strategy to promote effectivecommunication with shareholders and encourage effective participation at general meetings.The Company is committed to dealing fairly, transparently and promptly with shareholders. The Boardaims to ensure that the shareholders are informed of all major developments.The annual report is distributed to all shareholders who have specifically requested the document. Inaddition, the Company makes all ASX announcements, details of shareholder meetings and financialreports available of the Company’s website.Half-year financial reports prepared in accordance with the requirements of Accounting Standards and theCorporations Act 2001 are lodged with the Australian Securities and Investments Commission and theAustralian Securities Exchange. The financial reports are sent to any shareholder who requests them andquarterly reports are submitted to the ASX under the requirements of the Exchange relating to miningcompanies. Copies of the quarterly reports are sent to shareholders whenever sufficient new information inthe report warrants distribution.Recommendation 6.2: Provide the information indicated in the ASX Corporate Governance Councils’Guide to Reporting on Principle 6.The Company effectively communicates with shareholders via ASX announcements and newsletters.PRINCIPLE 7: RECOGNISE AND MANAGE RISKRecommendation 7.1: The Board or appropriate committee should establish policies on risk oversightand management of material business risks and disclose a summary of those policies.The Board is responsible for the oversight of the Company’s risk management and control framework.Responsibility for control and risk management is delegated to the appropriate level. The RiskManagement Policy is reviewed annually. A copy of the Risk Management Policy is available on theCompany’s website.Recommendation 7.2: The board should require management to design and implement the riskmanagement and internal control system to manage the company’s material business risks and report toit on whether those risks are being managed effectively. The board should disclose that management hasreported to it as to the effectiveness of the company’s management of its material business risks.The Company is not of size to allow this recommendation to be followed. The Board is responsible for thedesign and implementation of risk management and internal control systems.Recommendation 7.3: The board should disclose whether it has received assurance from the chiefexecutive officer (or equivalent) and the chief financial officer (or equivalent) that the declarationprovided in accordance with section 295A of the Corporations Act is founded on a system of riskmanagement and internal control and that the system is operating effectively in all material respects inrelation to the financial reporting risks.The Company’s Managing Director and Chief Financial Officer provide this statement.Recommendation 7.4: Provide the information indicated in the ASX Corporate Governance Council’sGuide to reporting on Principle 7.A description of the Company’s risk oversight and management policy and internal compliance and controlsystem is included on the Company’s website.33