Corporate Governance Plan
Released
Released
Announcement PDF
LTR PHARMA LIMITED
ACN 644 924 569
(Company)
CORPORATE GOVERNANCE PLAN
TABLE OF CONTENTS
1.
CORPORATE GOVERNANCE ..................................................................................... 1
SCHEDULE 1 – BOARD CHARTER .............................................................................................. 2
1.
ROLE OF THE BOARD .................................................................................................. 2
2.
THE BOARD’S RELATIONSHIP WITH MANAGEMENT .................................................. 2
3.
SPECIFIC RESPONSIBILITIES OF THE BOARD .............................................................. 2
4.
COMPOSITION OF THE BOARD ................................................................................. 3
5.
DIRECTOR RESPONSIBILITIES ...................................................................................... 4
6.
THE ROLE OF THE CHAIRMAN .................................................................................... 5
7.
BOARD COMMITTEES ................................................................................................. 5
8.
BOARD MEETINGS ...................................................................................................... 6
9.
THE COMPANY SECRETARY ....................................................................................... 7
10.
ACCESS TO ADVICE .................................................................................................. 7
11.
FOREIGN DIRECTORS ................................................................................................. 8
12.
PERFORMANCE REVIEW............................................................................................. 8
SCHEDULE 2 – CORPORATE CODE OF CONDUCT .................................................................. 9
1.
PURPOSE ..................................................................................................................... 9
2.
VALUES ....................................................................................................................... 9
2.1
2.2
2.3
3.
Identity ............................................................................................................. 9
Purpose ............................................................................................................ 9
Commitment to values ................................................................................. 9
ACCOUNTABILITIES .................................................................................................. 10
3.1
3.2
Managers and Supervisors ......................................................................... 10
Employees ..................................................................................................... 10
4.
PERSONAL AND PROFESSIONAL BEHAVIOUR ........................................................ 10
5.
CONFLICT OF INTEREST ............................................................................................ 11
6.
INFORMATION SYSTEMS, DEVICES AND SOCIAL MEDIA/NETWORKING .............. 12
6.1
6.2
6.3
Information Systems ..................................................................................... 12
Bring Your Own Devices ............................................................................. 12
Social Media/Networking ........................................................................... 12
7.
PUBLIC AND MEDIA COMMENT .............................................................................. 12
8.
USE OF COMPANY RESOURCES .............................................................................. 12
9.
SECURITY OF INFORMATION ................................................................................... 13
10.
INTELLECTUAL PROPERTY/COPYRIGHT .................................................................... 13
11.
DISCRIMINATION AND HARASSMENT..................................................................... 13
12.
CORRUPT CONDUCT ................................................................................................ 13
13.
OCCUPATIONAL HEALTH AND SAFETY ................................................................... 14
14.
LEGISLATION ............................................................................................................ 14
15.
FAIR DEALING .......................................................................................................... 14
16.
INSIDER TRADING ..................................................................................................... 14
CCP/1259_15
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17.
RESPONSIBILITIES TO INVESTORS ............................................................................. 14
18.
BREACHES OF THE CODE OF CONDUCT................................................................. 14
19.
REPORTING MATTERS OF CONCERN ....................................................................... 15
20.
MONITORING AND REVIEW..................................................................................... 15
SCHEDULE 3 – AUDIT AND RISK COMMITTEE CHARTER ........................................................ 16
1.
ROLE ......................................................................................................................... 16
2.
COMPOSITION ......................................................................................................... 16
3.
PURPOSE ................................................................................................................... 16
4.
DUTIES AND RESPONSIBILITIES OF THE COMMITTEE................................................ 17
4.1
4.2
4.3
4.4
4.5
Review of Financial Reports ....................................................................... 17
Relationship with External Auditors ........................................................... 18
Internal Audit Function................................................................................ 18
Risk Management ........................................................................................ 19
Other .............................................................................................................. 19
5.
MEETINGS ................................................................................................................. 20
6.
SECRETARY ............................................................................................................... 20
7.
RELIANCE ON INFORMATION OR PROFESSIONAL OR EXPERT ADVICE ................ 20
8.
ACCESS TO ADVICE ................................................................................................ 21
9.
REVIEW OF CHARTER ............................................................................................... 21
10.
REPORT TO THE BOARD ............................................................................................ 21
SCHEDULE 4 – REMUNERATION COMMITTEE CHARTER ........................................................ 22
1.
ROLE ......................................................................................................................... 22
2.
COMPOSITION ......................................................................................................... 22
3.
PURPOSE ................................................................................................................... 22
4.
DUTIES AND RESPONSIBILITIES ................................................................................. 23
4.1
EXECUTIVE REMUNERATION POLICY....................................................................... 23
4.2
EXECUTIVE DIRECTORS AND SENIOR MANAGEMENT ............................................ 23
4.3
EXECUTIVE INCENTIVE PLANS (INCLUDING EQUITY BASED PLANS) ...................... 23
4.4
OTHER ....................................................................................................................... 24
5.
MEETINGS ................................................................................................................. 24
6.
SECRETARY ............................................................................................................... 25
7.
RELIANCE ON INFORMATION OR PROFESSIONAL OR EXPERT ADVICE ................ 25
8.
ACCESS TO ADVICE ................................................................................................ 25
9.
REVIEW OF CHARTER ............................................................................................... 25
10.
REPORTING ............................................................................................................... 26
SCHEDULE 5 – NOMINATION COMMITTEE CHARTER ............................................................ 27
1.
ROLE ......................................................................................................................... 27
2.
COMPOSITION ......................................................................................................... 27
3.
PURPOSE ................................................................................................................... 27
4.
DUTIES AND RESPONSIBILITIES OF THE COMMITTEE................................................ 27
CCP/1259_15
ii
5.
MEETINGS ................................................................................................................. 29
6.
SECRETARY ............................................................................................................... 29
7.
RELIANCE ON INFORMATION OR PROFESSIONAL OR EXPERT ADVICE ................ 30
8.
ACCESS TO ADVICE ................................................................................................ 30
9.
REVIEW OF CHARTER ............................................................................................... 30
10.
REPORTING ............................................................................................................... 30
SCHEDULE 6 – PERFORMANCE EVALUATION POLICY .......................................................... 31
SCHEDULE 7 – CONTINUOUS DISCLOSURE POLICY .............................................................. 32
SCHEDULE 8 – RISK MANAGEMENT POLICY.......................................................................... 34
SCHEDULE 9 – TRADING POLICY............................................................................................ 36
1.
INTRODUCTION ........................................................................................................ 36
2.
WHAT TYPES OF TRANSACTIONS ARE COVERED BY THIS POLICY? ....................... 36
3.
WHAT IS INSIDER TRADING? .................................................................................... 36
3.1
3.2
3.3
3.4
3.5
4.
GUIDELINES FOR TRADING IN THE COMPANY’S SECURITIES ................................. 38
4.1
4.2
4.3
4.4
4.5
5.
Prohibition ..................................................................................................... 36
Examples ....................................................................................................... 37
Dealing through third parties ..................................................................... 37
Information however obtained ................................................................. 37
Employee share schemes .......................................................................... 37
General rule .................................................................................................. 38
No short-term trading in the Company’s securities ............................... 38
Securities in other companies.................................................................... 38
Exceptions ..................................................................................................... 38
Notification of periods when Key Management Personnel are not
permitted to trade ....................................................................................... 40
APPROVAL AND NOTIFICATION REQUIREMENTS ................................................... 40
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
Approval requirements ............................................................................... 40
Approvals to buy or sell securities ............................................................. 40
Notification ................................................................................................... 40
Key Management Personnel sales of securities ..................................... 41
Exemption from Closed Periods restrictions due to exceptional
circumstance ............................................................................................... 41
Severe financial hardship or exceptional circumstances .................... 41
Financial hardship........................................................................................ 41
Exceptional circumstances ........................................................................ 41
6.
ASX NOTIFICATION FOR DIRECTORS ...................................................................... 42
7.
EFFECT OF COMPLIANCE WITH THIS POLICY .......................................................... 42
SCHEDULE 10 – DIVERSITY POLICY ........................................................................................ 43
1.
INTRODUCTION ........................................................................................................ 43
2.
OBJECTIVES .............................................................................................................. 43
3.
RESPONSIBILITIES ...................................................................................................... 44
3.1
3.2
The Board's commitment............................................................................ 44
Strategies....................................................................................................... 44
4.
MONITORING AND EVALUATION ........................................................................... 45
5.
REPORTING ............................................................................................................... 45
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SCHEDULE 11 – WHISTLEBLOWER PROTECTION POLICY ....................................................... 46
1.
BACKGROUND AND PURPOSE ................................................................................ 46
2.
DEFINITIONS ............................................................................................................. 46
3.
WHO THE WHISTLEBLOWER POLICY APPLIES TO ..................................................... 47
4.
RESPONSIBILITY FOR COMPLIANCE AND TRAINING .............................................. 47
5.
CONSEQUENCES OF BREACHING THIS WHISTLEBLOWER POLICY ......................... 48
6.
WHISTLEBLOWER POLICY ......................................................................................... 48
6.1
6.2
6.3
6.4
7.
Reportable Matters ..................................................................................... 48
Making a Report .......................................................................................... 50
Investigating a Report ................................................................................. 51
Support and Protections ............................................................................. 52
MONITORING AND REVIEW ..................................................................................... 55
ANNEXURE 1 – SUMMARY OF PROTECTIONS UNDER THE CORPORATIONS ACT
ANNEXURE 2 – SUMMARY OF PROTECTIONS UNDER THE TAXATION ADMINISTRATION ACT
SCHEDULE 12 – ANTI-BRIBERY AND ANTI-CORRUPTION POLICY ......................................... 63
1.
BACKGROUND ......................................................................................................... 63
2.
DEFINITIONS ............................................................................................................. 63
3.
PURPOSE ................................................................................................................... 65
4.
SCOPE AND AUTHORITY .......................................................................................... 65
5.
RESPONSIBILITY FOR POLICY COMPLIANCE AND TRAINING ................................ 65
6.
CONSEQUENCES OF BREACHING THIS ABC POLICY ............................................. 66
7.
POLICY ..................................................................................................................... 66
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
8.
General ......................................................................................................... 66
Prohibition against Bribery and Corruption ............................................. 67
Prohibition on Facilitation Payments, Secret Commissions and Moneylaundering ..................................................................................................... 68
Political Contributions and Charitable Donations .................................. 68
Interactions with Officials and Third Parties must be Compliant .......... 68
Documentation and Recordkeeping ...................................................... 69
Compliance with Local Laws Required ................................................... 69
Reporting Violations and Suspected Misconduct .................................. 69
Protection...................................................................................................... 69
MONITORING AND REVIEW ..................................................................................... 70
APPENDIX – ITEMS OF VALUE REGISTER
SCHEDULE 13 – SHAREHOLDER COMMUNICATIONS STRATEGY .......................................... 72
ANNEXURE A – DEFINITION OF INDEPENDENCE ................................................................... 74
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1.
CORPORATE GOVERNANCE
The Company is committed to complying with the highest standards of corporate
governance to ensure that all of its business activities are conducted fairly,
honestly and with integrity in compliance with all applicable laws. To achieve this,
the Company’s board of directors (Board) has adopted a number of charters and
policies which aim to ensure that value is created whilst accountability and
controls are commensurate with the risks involved.
To the extent applicable, the Board has adopted the recommendations set out
in the ASX Corporate Governance Principles and Recommendations – 4th Edition
(Recommendations).
Together with the Company’s constitution (Constitution), the following charters
and policies have been adopted by the Company to achieve a high standard of
corporate governance:
Charters and Codes
Board Charter
Corporate Code of Conduct
Audit and Risk Committee Charter
Remuneration Committee Charter
Nomination Committee Charter
Policies
Performance Evaluation Policy
Continuous Disclosure Policy
Risk Management Policy
Trading Policy
Diversity Policy
Whistleblower Protection Policy
Anti-Bribery and Anti-Corruption Policy
Shareholder Communications Strategy
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SCHEDULE 1 – BOARD CHARTER
1.
ROLE OF THE BOARD
The role of the Board is to provide overall strategic guidance and effective
oversight of management. The Board derives its authority to act from the
Company’s Constitution.
2.
3.
THE BOARD’S RELATIONSHIP WITH MANAGEMENT
(a)
The Board shall delegate responsibility for the day-to-day operations and
administration of the Company to the Chief Executive Officer/Managing
Director.
(b)
Specific limits on the authority delegated to the Chief Executive
Officer/Managing Director and the team of executives as appointed by
the Company (Executive Team) must be set out in the delegated
authorities approved by the Board.
(c)
The role of management is to support the Chief Executive
Officer/Managing Director and implement the running of the general
operations and financial business of the Company including instilling and
reinforcing the Company’s values, in accordance with the delegated
authority of the Board.
(d)
In addition to formal reporting structures, members of the Board are
encouraged to have direct communications with management and
other employees within the Company and its subsidiaries (if any) (Group)
to facilitate the effective carrying out of their duties as Directors.
SPECIFIC RESPONSIBILITIES OF THE BOARD
In addition to matters it is expressly required by law to approve, the Board has
reserved the following matters to itself:
CCP/1259_15
(a)
Driving the strategic direction of the Company and defining the
Company’s purpose, ensuring appropriate resources are available to
meet objectives and monitoring management’s performance.
(b)
Approving the Company’s statement of values and Code of Conduct to
ensure the desired culture within the Company is maintained and
monitoring the implementation of such values and culture at all times.
(c)
Ensuring that an appropriate framework exists for relevant information to
be reported by management to the Board.
(d)
When required, challenging management and holding it to account,
(e)
Appointment and replacement of the Chief Executive Officer/Managing
Director, other senior executives and the Company Secretary and the
determination of the terms and conditions of their employment including
remuneration and termination.
2
4.
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(f)
Approving the Company’s remuneration framework and ensuring it is
aligned with the Company’s purpose, values, strategic objectives and risk
appetite.
(g)
Monitoring the timeliness and effectiveness of reporting to shareholders.
(h)
Reviewing and ratifying systems of audit, risk management (for both
financial and non-financial risk) and internal compliance and control,
codes of conduct and legal compliance to minimise the possibility of the
Company operating beyond acceptable risk parameters.
(i)
Approving and monitoring the progress of major capital expenditure,
capital management and significant acquisitions and divestitures.
(j)
Approving and monitoring the budget and the adequacy and integrity
of financial and other reporting such that the financial performance of
the Company has sufficient clarity to be actively monitored.
(k)
Approving the annual, half yearly and quarterly accounts.
(l)
Approving significant changes to the organisational structure.
(m)
Approving decisions affecting the Company’s capital, including
determining the Company’s dividend policy and declaring dividends.
(n)
Recommending to shareholders the appointment of the external auditor
as and when their appointment or re-appointment is required to be
approved by them (in accordance with the ASX Listing Rules if
applicable).
(o)
Ensuring a high standard of corporate governance practice and
regulatory compliance and promoting ethical and responsible decision
making.
(p)
Procuring appropriate professional development opportunities for
Directors to develop and maintain the skills and knowledge needed to
perform their role as Directors effectively and to deal with new and
emerging business and governance issues.
COMPOSITION OF THE BOARD
(a)
The Board should comprise Directors with a mix of qualifications,
experience and expertise which will assist the Board in fulfilling its
responsibilities, as well as assisting the Company in achieving growth and
delivering value to shareholders.
(b)
In appointing new members to the Board, consideration must be given to
the demonstrated ability and also future potential of the appointee to
contribute to the ongoing effectiveness of the Board, to exercise sound
business judgement, to commit the necessary time to fulfil the
requirements of the role effectively and to contribute to the development
of the strategic direction of the Company.
(c)
The composition of the Board is to be reviewed regularly against the
Company’s Board skills matrix prepared and maintained by the
nominations committee to ensure the appropriate mix of skills and
3
expertise is present to facilitate successful strategic direction and to deal
with new and emerging business and governance issues.
(d)
5.
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Where practical, the majority of the Board should be comprised of nonexecutive Directors who can challenge management and hold them to
account as well as represent the best interests of the Company and its
shareholders as a whole rather than those of individual shareholders or
interest groups. Where practical, at least 50% of the Board should be
independent.
(i)
An independent Director is a director who is free of any interest,
position or relationship that might influence, or reasonably be
perceived to influence, in a material respect his or her capacity
to bring an independent judgement to bear on issues before the
Board and to act in the best interests of the Company as a whole
rather than in the interests of an individual shareholder or other
party.
(ii)
In considering whether a Director is independent, the Board
should consider the definition of what constitutes independence
as detailed in Box 2.3 of the ASX Corporate Governance
Council's
Corporate
Governance
Principles
and
th
Edition as set out in Annexure A
Recommendations 4
(Independence Tests).
(e)
Prior to the Board proposing re-election of non-executive Directors, their
performance will be evaluated by the remuneration and nomination
committee to ensure that they continue to contribute effectively to the
Board.
(f)
The Company must disclose the length of service of each Director in, or
in conjunction with, its annual report (Annual Report).
(g)
The Company must disclose the relevant qualifications and experience
of each member of the Board in, or in conjunction with, its Annual Report.
DIRECTOR RESPONSIBILITIES
(a)
Where a Director has an interest, position or relationship of the type
described in the Independence Tests, but the Board is of the opinion that
it does not compromise the independence of the Director, the Company
must disclose the nature of the interest or relationship in question and an
explanation of why the Board is of that opinion.
(b)
Directors must disclose their interests, positions or relationships. The
independence of the Directors should be regularly assessed by the Board
in light of the interests disclosed by them.
(c)
Directors are expected to bring their independent views and judgement
to the Board and must declare immediately to the Board any potential
or active conflicts of interest.
(d)
Directors must declare immediately to the Board, and the Board will
determine whether to declare to the market, any loss of independence.
4
(e)
6.
7.
THE ROLE OF THE CHAIRMAN
(a)
The Chairman of the Board is responsible for the leadership of the Board,
ensuring it is effective, setting the agenda of the Board, conducting the
Board meetings, ensuring then approving that an accurate record of the
minutes of Board meetings is held by the Company and conducting the
shareholder meetings.
(b)
Where practical, the Chairman of the Board should be a non-executive
Director. If a Chairman of the Board ceases to be an independent
Director then the Board will consider appointing a lead independent
Director.
(c)
Where practical, the Chief Executive Officer/Managing Director should
not be the Chairman of the Board of the Company during his term as
Chief Executive Officer/Managing Director or in the future.
(d)
The Chairman of the Board must be able to commit the time to discharge
the role effectively.
(e)
The Chairman of the Board should facilitate the effective contribution of
all Directors and promote constructive and respectful relations between
Board members and management.
(f)
In the event that the Chairman of the Board is absent from a meeting of
the Board then the Board shall appoint a Chairman for that meeting in
an acting capacity.
BOARD COMMITTEES
(a)
CCP/1259_15
No member of the Board (other than a Managing Director) may serve for
more than three years or past the third annual general meeting following
their appointment, whichever is the longer, without being re-elected by
the shareholders.
Once the Board is of a sufficient size and structure, reflecting that the
Company’s operations are of a sufficient magnitude, to assist the Board
in fulfilling its duties, the Board must establish the following committees,
each with written charters:
(i)
audit and risk committee;
(ii)
remuneration committee; and
(iii)
nomination committee.
(b)
The charter of each committee must be approved by the Board and
reviewed following any applicable regulatory changes.
(c)
The Board will ensure that the committees are sufficiently funded to
enable them to fulfil their roles and discharge their responsibilities.
(d)
Members of committees are appointed by the Board. The Board may
appoint additional Directors to committees or remove and replace
members of committees by resolution.
5
8.
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(e)
The Company must disclose the members and Chairman of each
committee in, or in conjunction with, its Annual Report.
(f)
The minutes of each committee meeting shall be provided to the Board
at the next occasion the Board meets following approval of the minutes
of such committee meeting.
(g)
The Company must disclose in, or in conjunction with, its Annual Report,
in relation to each reporting period relevant to a committee, the number
of times each committee met throughout the period and the individual
attendances of the members at those committee meetings.
(h)
Where the Board does not consider that the Company will benefit from a
particular separate committee:
(i)
the Board must carry out the duties that would ordinarily be
assigned to that committee under the written terms of reference
for that committee; and
(ii)
the Company must disclose in, or in conjunction with, its Annual
Report
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