r personal use only
88 ENERGY LIMITED ACN 072 964 179 (Company)
CORPORATE GOVERNANCE STATEMENT
FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2021
This Corporate Governance Statement is current as at 18 March 2022 and has been approved by the Board of the Company on that date.
This Corporate Governance Statement discloses the extent to which the Company has, during the financial year ending 31 December 2021, followed the recommendations set by the ASX Corporate Governance Council in its publication Corporate Governance Principles and Recommendations - 4th Edition (Recommendations). The Recommendations are not mandatory, however the Recommendations that have not been followed for any part of the reporting period have been identified and reasons provided for not following them along with what (if any) alternative governance practices were adopted in lieu of the recommendation during that period.
The Company has adopted a Corporate Governance Plan which provides the written terms of reference for the Company's corporate governance duties.
Under the Company's Board Charter, the duties that would ordinarily be assigned to individual committees are currently carried out by the full Board under the written terms of reference for those committees. The Board is planning to review this during 2022.
The Company's Corporate Governance Plan is available on the Company's website at www.88energycom.
RECOMMENDATIONS (4TH EDITION) | COMPLY | EXPLANATION | |||||||||
Principle 1: Lay solid foundations for management and oversight | |||||||||||
Recommendation 1.1 | The Company has adopted a Board Charter that sets out the specific | ||||||||||
(a) | A listed entity should have and disclose a board charter | YES | roles and responsibilities of the Board, the Chair and management and | ||||||||
includes a description of those matters expressly reserved to the Board | |||||||||||
which sets out the respective roles and responsibilities | |||||||||||
and those delegated to management. | |||||||||||
of the Board, the Chair and management, and includes | |||||||||||
a description of those matters expressly reserved to the | The Board Charter sets out the specific responsibilities of the Board, | ||||||||||
Board and those delegated to management. | requirements as to the Board's composition, the roles and | ||||||||||
responsibilities of the Chairman and Company Secretary, the | |||||||||||
establishment, operation and management of Board Committees (if | |||||||||||
any), Directors' access to Company records and information, details of | |||||||||||
the Board's relationship with management, details of the Board's | |||||||||||
performance review and details of the Board's disclosure policy. | |||||||||||
A copy of the Company's Board Charter, which is part of the Company's | |||||||||||
Corporate Governance Plan, is available on the Company's website. | |||||||||||
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RECOMMENDATIONS (4TH EDITION) | COMPLY | EXPLANATION | |||||||||||||||||
Recommendation 1.2 | (a) | The Company has guidelines for the appointment and selection | |||||||||||||||||
A listed entity should: | YES | of the Board and senior executives in its Corporate Governance | |||||||||||||||||
Plan. The Company's Nomination Committee Charter (in the | |||||||||||||||||||
only | (a) | undertake appropriate checks before appointing a | |||||||||||||||||
Company's | Corporate Governance Plan) | requires | the | ||||||||||||||||
director or senior executive or putting someone forward | |||||||||||||||||||
Nomination Committee (or, in its absence, the Board) to ensure | |||||||||||||||||||
for election as a Director; and | |||||||||||||||||||
appropriate checks (including checks in respect of character, | |||||||||||||||||||
(b) | provide security holders with all material information in | ||||||||||||||||||
experience, education, criminal record and bankruptcy history | |||||||||||||||||||
its possession relevant to a decision on whether or not | |||||||||||||||||||
(as appropriate)) are undertaken before appointing a person, or | |||||||||||||||||||
to elect or re-elect a Director. | |||||||||||||||||||
putting forward to security holders a candidate for election, as a | |||||||||||||||||||
Director. In the event of an unsatisfactory check, a Director is | |||||||||||||||||||
required to submit their resignation. | |||||||||||||||||||
(b) | Under the Nomination Committee Charter, all material | ||||||||||||||||||
use | information relevant to a decision on whether or not to elect or | ||||||||||||||||||
re-elect a Director must be provided to security holders in the | |||||||||||||||||||
Notice of Meeting containing the resolution to elect or re-elect a | |||||||||||||||||||
Director. | |||||||||||||||||||
Recommendation 1.3 | The Company's Nomination Committee Charter requires the Nomination | ||||||||||||||||||
A listed entity should have a written agreement with each Director | YES | Committee (or, in its absence, the Board) to ensure that each Director | |||||||||||||||||
and senior executive is personally a party to a written agreement with | |||||||||||||||||||
and senior executive setting out the terms of their appointment. | |||||||||||||||||||
the Company which sets out the terms of that Director's or senior | |||||||||||||||||||
personalr | executive's appointment. | ||||||||||||||||||
The Company has had written agreements with each of its Directors and | |||||||||||||||||||
senior executives for the past financial year. | |||||||||||||||||||
Recommendation 1.4 | The Board Charter outlines the roles, responsibility and accountability of | ||||||||||||||||||
The Company Secretary of a listed entity should be accountable | YES | the Company Secretary. In accordance with this, the Company | |||||||||||||||||
Secretary is accountable directly to the Board, through the Chair, on all | |||||||||||||||||||
directly to the Board, through the Chair, on all matters to do with | |||||||||||||||||||
matters to do with the proper functioning of the Board. | |||||||||||||||||||
the proper functioning of the Board. | |||||||||||||||||||
Recommendation 1.5 | (a) | The Company has adopted a Diversity Policy which provides a | |||||||||||||||||
A listed entity should: | PARTIALLY | framework for the Company to establish, achieve and measure | |||||||||||||||||
diversity objectives, including in respect of gender diversity. The | |||||||||||||||||||
(a) | have and disclose a diversity policy; | ||||||||||||||||||
Diversity | Policy | is available, | as | part | of | the Corporate | |||||||||||||
(b) | through its board or a committee of the board set | ||||||||||||||||||
Governance Plan, on the Company's website. | |||||||||||||||||||
measurable objectives for achieving gender diversity in | |||||||||||||||||||
(b) | The Diversity Policy allows the Board to set measurable gender | ||||||||||||||||||
the composition of its board, senior executives and | |||||||||||||||||||
diversity objectives, if considered appropriate, and to continually | |||||||||||||||||||
workforce generally; and | |||||||||||||||||||
monitor | both | the | objectives [if | any | have | been set and | the | ||||||||||||
(c) | disclose in relation to each reporting period: | ||||||||||||||||||
Company's progress in achieving them. | |||||||||||||||||||
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RECOMMENDATIONS (4TH EDITION) | COMPLY | EXPLANATION | |||||||||||||||
(i) | the measurable objectives set for that period to | (c) | The Board did not set measurable gender diversity objectives for | ||||||||||||||
achieve gender diversity; | the past financial year, however, female representation on the | ||||||||||||||||
(ii) | the entity's progress towards achieving those | Board increased from 0% to 25%, while female representation | |||||||||||||||
in the total organisation increased from 14% to 30%. | |||||||||||||||||
objectives; and | |||||||||||||||||
(iii) | either: | ||||||||||||||||
(A) | the respective | proportions | of | men | The respective proportions of men and women on the Board, in senior | ||||||||||||
executive positions and across the whole organisation (including how | |||||||||||||||||
and women on the Board, in senior | |||||||||||||||||
the entity has defined "senior executive" for these purposes) for the past | |||||||||||||||||
executive positions | and across the | ||||||||||||||||
financial year is disclosed below. | |||||||||||||||||
whole workforce (including how the | |||||||||||||||||
entity has defined "senior executive" | |||||||||||||||||
for these purposes); or | Women | Men | Total | % Female | |||||||||||||
(B) | if the entity is a "relevant employer" | Board of Directors | 1 | 3 | 4 | 25% | |||||||||||
under | the | Workplace | Gender | ||||||||||||||
Other KMP | - | 2 | 2 | - | |||||||||||||
Equality Act, the entity's most recent | |||||||||||||||||
Other Employees | 2 | 2 | 4 | 50% | |||||||||||||
"Gender | Equality | Indicators", | as | ||||||||||||||
defined in the Workplace Gender | Total Organisation | 3 | 7 | 10 | 30% | ||||||||||||
Equality Act. | |||||||||||||||||
If the entity was in the S&P / ASX 300 Index at the commencement of the reporting period, the measurable objective for achieving gender diversity in the composition of its board should be to have not less than 30% of its directors of eachgender within a specified period.
Recommendation 1.6 | (a) | The Company's Nomination Committee (or, in its absence, the | |||||||||||||||
A listed entity should: | YES | Board) is responsible for evaluating the performance of the | |||||||||||||||
Board, its committees (if any) and individual Directors on an | |||||||||||||||||
(a) | have and disclose a process for periodically evaluating | ||||||||||||||||
annual basis. It may do so with the aid of an independent | |||||||||||||||||
the performance of | the | Board, | its | committees and | |||||||||||||
advisor. The process for this | is set | out | in the Company's | ||||||||||||||
individual Directors; and | |||||||||||||||||
Corporate Governance Plan, | which | is | available on the | ||||||||||||||
(b) | disclose for | each | reporting | period whether | a | ||||||||||||
Company's website. | |||||||||||||||||
performance | evaluation | has been | undertaken | in | |||||||||||||
The Company's Corporate Governance Plan requires the | |||||||||||||||||
accordance with that process during or in respect of that | |||||||||||||||||
Company to disclose whether or not performance evaluations | |||||||||||||||||
period. | |||||||||||||||||
were conducted during the relevant reporting period. The Board | |||||||||||||||||
has developed an informal process for performance evaluation | |||||||||||||||||
whereby the performance of all directors is reviewed regularly by | |||||||||||||||||
the Chair and Managing Director. | |||||||||||||||||
RECOMMENDATIONS (4TH EDITION) | COMPLY | EXPLANATION | |||||||||||||||||||||
The Board as a whole may then hold a facilitated discussion | |||||||||||||||||||||||
during which each Board member has the opportunity to raise | |||||||||||||||||||||||
any matter, suggestion for improvement or criticism with the | |||||||||||||||||||||||
only | Board as a whole. The Chair and/or the Managing Director of the | ||||||||||||||||||||||
Board may also meet individually with each Board member to | |||||||||||||||||||||||
discuss their performance. There is a standing agenda item at | |||||||||||||||||||||||
each board meeting where the Non-Executive Directors can | |||||||||||||||||||||||
discuss in private the ongoing performance of the Managing | |||||||||||||||||||||||
Director and other senior staff and that feedback to the | |||||||||||||||||||||||
Managing Director is conveyed by the Chairman.Directors | |||||||||||||||||||||||
whose performance is consistently unsatisfactory may be asked | |||||||||||||||||||||||
to retire. | |||||||||||||||||||||||
use | The Company has completed performance evaluations in | ||||||||||||||||||||||
respect of | the | Board, | and individual Directors | for the | past | ||||||||||||||||||
financial year in accordance with the above process. Going | |||||||||||||||||||||||
forward, it is the Company's intention that all directors will | |||||||||||||||||||||||
continue to receive individual performance evaluations at least | |||||||||||||||||||||||
annually. | |||||||||||||||||||||||
Recommendation 1.7 | (a) | The Company's Nomination Committee (or, in its absence, the | |||||||||||||||||||||
personalr | A listed entity should: | YES | Board) is responsible for evaluating the performance of the | ||||||||||||||||||||
Company's | senior | executives on | an | annual | basis. | The | |||||||||||||||||
(a) | have and disclose a process for evaluating | the | |||||||||||||||||||||
Company's Remuneration Committee (or, in its absence, the | |||||||||||||||||||||||
performance of its senior executives at least once every | |||||||||||||||||||||||
Board) is responsible | for evaluating | the | remuneration | of the | |||||||||||||||||||
reporting period; and | |||||||||||||||||||||||
Company's | senior | executives on | an | annual basis. A | senior | ||||||||||||||||||
(b) | disclose for | each reporting | period whether | a | |||||||||||||||||||
executive, | for | these | purposes, | means | key | management | |||||||||||||||||
performance | evaluation has | been undertaken | in | ||||||||||||||||||||
personnel (as defined in the Corporations Act) other than a non- | |||||||||||||||||||||||
accordance with that process during or in respect of that | |||||||||||||||||||||||
executive Director. | |||||||||||||||||||||||
period. | |||||||||||||||||||||||
The applicable processes for these evaluations can be found in | |||||||||||||||||||||||
the Company's Corporate Governance Plan, which is available | |||||||||||||||||||||||
on the Company's website. | |||||||||||||||||||||||
(b) | The Company has developed an informal process of | ||||||||||||||||||||||
performance evaluation whereby an assessment of progress is | |||||||||||||||||||||||
carried out throughout the year. | |||||||||||||||||||||||
A review of senior executives was undertaken during the | |||||||||||||||||||||||
financial year. Evaluation of management was also carried out | |||||||||||||||||||||||
on continuing basis by the Managing Director. | |||||||||||||||||||||||
RECOMMENDATIONS (4TH EDITION) | COMPLY | EXPLANATION | ||||||||||||||||
There is a standing agenda item at each board meeting where | ||||||||||||||||||
the Non-Executive Directors can discuss in private the ongoing | ||||||||||||||||||
performance of the Managing Director and other senior staff and | ||||||||||||||||||
only | that feedback to the Managing Director is conveyed by the | |||||||||||||||||
Chairman. | ||||||||||||||||||
As of the date of this report, the Company is in the process of | ||||||||||||||||||
completing procedures on performance measures for the short- | ||||||||||||||||||
term and long-term incentive plans and the assessment criteria | ||||||||||||||||||
for the Managing Director and all Key Management Personnel. | ||||||||||||||||||
Principle 2: Structure the Board to be effective and add value | ||||||||||||||||||
Recommendation 2.1 | (a) | The Company's Nomination Committee Charter provides for the | ||||||||||||||||
use | The Board of a listed entity should: | PARTIALLY | creation of a Nomination Committee (if it is considered it will | |||||||||||||||
benefit the Company), with at least three members, a majority of | ||||||||||||||||||
(a) | have a nomination committee which: | |||||||||||||||||
whom are independent Directors, and which must be chaired by | ||||||||||||||||||
(i) | has at least three members, a majority | of | ||||||||||||||||
an independent Director | ||||||||||||||||||
whom are independent Directors; and | ||||||||||||||||||
(b) | The Company did not have a Nomination Committee for the past | |||||||||||||||||
(ii) | is chaired by an independent Director, | |||||||||||||||||
financial year and is planning to review this position during 2022. | ||||||||||||||||||
and disclose: | In accordance with the Company's Board Charter, the Board | |||||||||||||||||
(iii) | the charter of the committee; | carries out the duties that would ordinarily be carried out by the | ||||||||||||||||
Nomination Committee | under | the | Nomination | Committee | ||||||||||||||
(iv) | the members of the committee; and | |||||||||||||||||
personalr | Charter, including the | following | processes | to address | ||||||||||||||
(v) | as at the end of each reporting period, the | |||||||||||||||||
succession issues and to ensure the Board has the appropriate | ||||||||||||||||||
number of times the committee met throughout | ||||||||||||||||||
balance of skills, experience, independence and knowledge of | ||||||||||||||||||
the period and the individual attendances of | ||||||||||||||||||
the entity to enable it to discharge its duties and responsibilities | ||||||||||||||||||
the members at those meetings; or | ||||||||||||||||||
effectively: | ||||||||||||||||||
(b) | if it does not have a nomination committee, disclose that | (i) | devoting time at | least | annually to discuss Board | |||||||||||||
fact and the processes it employs to address Board | ||||||||||||||||||
succession issues; and | ||||||||||||||||||
succession issues and to ensure that the Board has the | ||||||||||||||||||
(ii) | all Board members being involved in the Company's | |||||||||||||||||
appropriate balance of skills, knowledge, experience, | ||||||||||||||||||
nomination process, to the maximum extent permitted | ||||||||||||||||||
independence and diversity to enable it to discharge its | ||||||||||||||||||
under the Corporations Act and ASX Listing Rules. | ||||||||||||||||||
duties and responsibilities effectively. | ||||||||||||||||||
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88 Energy Limited published this content on 18 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2022 02:20:02 UTC.