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Corporate governance policy

The Board and Committees
The Board currently comprises two executive directors and five non-executive directors of whom one is the Chairman and three are independent non-executive directors (one being the Senior Independent Director). The Board considers its independent non-executive directors to be independent in character and judgement.

No independent non-executive director has:

  • been an employee of the Group within the last five years;
  • had within the last three years, a material business relationship with the Group;
  • received remuneration other than a director's fee;
  • had close family ties with any of the Group's advisers, directors or senior employees;
  • held cross-directorships or had significant links with other directors through involvement in other companies or bodies;
  • represented a significant shareholder; or
  • served on the Board for more than nine years.

The Combined Code indicates that a Chairman of the Company should meet the independence criteria on appointment, and the current Chairman did, but thereafter the test of independence is not appropriate in relation to the Chairman.

The remaining non-executive director is nominated by major shareholder, Mohammed Abdulmohsin Al-Kharafi & Sons WLL.

Until 4 December 2009, a non-executive director was nominated by York Place Limited, a subsidiary of UEM Builders Berhad, the other major shareholder. UEM Builders Berhad have not yet taken advantage of the right to nominate a successor to the non-executive director who retired on 4 December 2009.

The Company complies with the requirement under provision A3.2 of the Combined Code that at least half of the Board, excluding the chairman, should comprise non-executive directors determined by the Board to be independent, notwithstanding that this requirement is waived in respect of smaller companies such as the Company being a member of the FTSE small cap companies.

The independent non-executive directors all have terms and conditions of appointment, which are available for inspection during normal business hours at the Company's Registered Office. An independent non-executive director's appointment is for an initial period of three years, at the expiry of which time, the appointment is reviewed to determine whether the appointment should continue. The two major shareholders are each entitled to appoint a non-executive director for so long as those shareholders each hold 7% of the aggregate nominal value of the then issued ordinary share capital of the Company.

In consequence, the Company did not comply with provision A7.2 of the Combined Code, which requires that all non-executive directors should be appointed for a specific term and be subject to re-election. The Company's Articles of Association require that all directors, including nominee non-executive directors, should be subject to election by shareholders at the first opportunity after their appointment and to re-election thereafter at intervals of no more than three years, thus complying with provision A7.1 of the Combined Code.

Brief biographies of the executive and non-executive directors appear here. The biographies illustrate that the non-executive directors have a range of business and financial experience that is important and relevant to the management of the Company.

The Group is controlled through its Board. The Board's main roles are to create value for shareholders, to provide entrepreneurial leadership of the Group, to approve the Group's strategic objectives and to ensure that the necessary financial and other resources are made available to enable the Group to meet those objectives.

Audit Committee (PDF 219kb)

Nomination Committee (PDF 78kb)

Remuneration Committee (PDF 428kb)