Investor Relations

United Overseas Australia Ltd

Corporate Governance

Since the introduction of ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations (“ASX Guidelines” or the “Recommendations”), United Overseas Australia Ltd (“Company”) has made it a priority to adopt systems of control and accountability as the basis for the administration of Corporate Governance. Some of these policies and procedures are summarised in this report. Commensurate with the spirit of the ASX Guidelines, the Company has followed each Recommendation to be an appropriate benchmark for corporate governance practices, taking into account factors such as the size of the Company, the Board, resources available and activities of the Company. Where, after due consideration, the Company’s corporate governance practices depart from the Recommendations, the Board has offered full disclosure of the nature of, and reason for, the adoption of its own practice.

The Company has adopted systems of control and accountability as the basis for the administration of corporate governance. The Board of the Company is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Company’s needs.

Taking into account the matters above, the Company’s endeavours to comply with the Corporate Governance Principles and the corresponding Best Practice Recommendations as published by the ASX Corporate Governance Council (“Corporate Governance Principles and Recommendations”) and has adopted the revised Principles and Recommendations. Significant policies and details of any significant deviations from the principles are specified below and in the Corporate Governance Statement.

The Company’s most recent Corporate Governance Statement can be read here.

Role of the Board of Directors

The Board has a responsibility for protecting the rights and interests of Shareholders and is responsible for the overall direction, monitoring and governance of the Company. Responsibility for managing the business on a day-to-day basis has been delegated to the Chief Executive Officer and the management team.

The Board is responsible for the overall corporate governance of the Company and its subsidiaries. Responsibilities and Functions of the Board are set out in the Board Charter.

Board Composition

The relevant provisions in the Constitution and the Corporations Act determine the terms and conditions relating to the appointment and termination of Directors. All Directors, with the exception of the Managing Director (CEO), are subject to re-election by rotation every three years.

Changes to Directorships will be considered by the Nominations and Remuneration Committee subject to any applicable laws. Identification of potential Board candidates includes consideration of skills, personal attributes and capability to devote the necessary time and commitment to the role.

The Constitution requires a minimum number of three Directors. The maximum number of Directors is fixed by the Board but may not be more than 9 unless the members of the Company, in general meeting, resolve otherwise. The skills, experience and expertise of the directors is set out in the Directors’ section in the Annual Report.

The Board considers the independence of directors having regard to the relationships listed by the Principles & Recommendations and applicable materiality thresholds. The Board has agreed that the materiality thresholds applicable to assessing the independence of directors will be determined on a case-by-case basis.

Code of Conduct

The Board has adopted a Code of Conduct that applies to all employees, executives and Directors of the Company, and as such complies with the recommendations of the Corporate Governance Council. This Code addresses expectations for conduct in accordance with legal requirements and agreed ethical standards.

Security Trading Policy

The Board has committed to ensuring that the Company, its Directors and executives comply with their legal obligations as well as conducting their business in a transparent and ethical manner. The Board has adopted a policy and procedure on dealing the Company’s securities by Directors, officers and employees which prohibits in dealing in the Company’s securities when those persons possess inside information.

Financial Reporting

The Board relies on senior executives to monitor the internal controls within the Company. Financial performance is monitored on a regular basis by the Chief Executive Officer and the Chief Financial Officer who reports to the Board at the scheduled Board meetings.

The Audit Committee reviews the performance of the external auditors on an annual basis and meets with them during the year to review findings and assist with Board recommendations.

Continuous Disclosure

The Board places high priority on communication with Shareholders and is aware of the obligations it has, under the Corporations Act and ASX Listing Rules, to keep the market fully informed of the information which is not generally available and which may have a material effect on the price or value on the Company’s securities.

The Company has adopted policies which establish procedures to ensure the directors and management are aware of and fulfill their obligations in relation to the timely disclosure of material price sensitive information.

Continuous disclosure is discussed at all regular Board meetings and on an ongoing basis the Board ensures that all activities are reviewed with a view to necessity for disclosure for security holders.

In accordance with ASX Listing Rules the Company Secretary has been appointed as the Company’s disclosure officer.

Risk Management Policy

The Board has adopted a risk management policy that sets out a framework for a system of risk management and internal compliance and control whereby the Board delegates day-to-day management of risk to the Chief Executive Officer therefore complying with the recommendations of the Corporate Governance Council. The Board is responsible for supervising the management’s framework of control and accountability systems to enable risk to be assessed and managed.

The Company is committed to ensuring that sound environmental management and safety practices are maintained for its exploration activities.

The Company’s risk management strategy is evolving and will be an ongoing process and it is recognised that the level and extent of the strategy will develop with the growth and change in the Company’s activities.

Risk Reporting

As the Board has responsibility for the monitoring of risk management it has not required a formal report regarding the material risks and whether those risks are managed effectively therefore not complying with Recommendation 7.2 of the Corporate Governance Council. The Board believes that the Company is currently effectively communicating its significant and material risks to the Board and its affairs are not of sufficient complexity to justify the implementation of a more formal system for identifying, assessing, monitoring and managing the risk in the Company.

Corporate Governance Statement

The Company reviews its corporate governance and prepares a Corporate Governance Statement each year when completing its financial reporting processes.  Further information and other areas of the Company’s corporate governance not included above can be found in the most recent Corporate Governance Statement.