Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed and how performance is optimised.
Good corporate governance structures encourage companies to create value and provide accountability and control systems commensurate with the risks involved.
In August 2007 the ASX Corporate Governance Council published the second edition of the principles and recommendations for Best Practice Corporate Governance. These were further amended in 2010. It is a requirement of ASX listed companies to analyse and report their compliance with such in Annual Report. Should there be instances of non compliance then reasons for such must be explained.
The 8 Principals of Corporate Governance are:
Principle 1: Lay solid foundations for management and oversight
Principle 2: Structure the board to add value
Principle 3: Promote ethical and responsible decision-making
Principle 4: Safeguard integrity in financial reporting
Principle 5: Make timely and balanced disclosure
Principle 6: Respect the rights of shareholders
Principle 7: Recognise and manage risk
Principle 8: Remunerate fairly and responsibly
Although the Western Areas Board are committed to the above recommendations, the corporate governance policies and principles should be established, implemented and monitored in such a way as to not compromise or distract the Board and management from its key goals and in a way that ensures the organisation carries on its business in an efficient and effective manner.
Western Areas is committed to high standards of corporate governance in which the executive and board are accountable to its stakeholders.
Western Areas Ltd (“WSA”) comes from a background as a junior exploration company with a market capitalisation of less than $10 million in 2002, to an ASX top 200 company.
The Board has developed policies to ensure that an appropriate and optimal level of corporate governance is in place. The Board has taken into consideration the nature of the governance matter, the impact of immediate or accelerated change to comply on the company and the issues (particularly risks) associated with deferred implementation.
The polices, procedures and guidelines adopted by the Board are disclosed in this document. The changing nature of the operations and structure of the organisation and the environment in which it operates will necessitate ongoing review of the corporate governance requirements.