Corporate Governance

The Directors recognise the importance of sound corporate governance and confirm that although compliance with the UK Corporate Governance Code is not compulsory for AIM companies, following Admission, they intend to comply with the QCA Corporate Governance Code (as devised by the QCA in consultation with a number of significant institutional small company investors), to the extent appropriate and practicable for a company of its nature and size. Following Admission, the Board will comprise four Directors of which two are executives and two non-executives, and reflect a blend of different experience and backgrounds. The Board considers two Directors to be independent.

Following Admission, the Board will meet regularly to review, formulate and approve the Group’s strategy, budgets, and corporate actions and oversee the Group’s progress towards its goals. In accordance with best practice, the Group has established audit, remuneration and nomination committees with formally delegated duties and responsibilities and with written terms of reference. From time to time separate committees may be set up by the Board to consider specific issues when the need arises.

Audit committee

The audit committee will assist the Board in discharging its responsibilities, within agreed terms of reference, with regard to corporate governance, financial reporting and external and internal audits and controls, including, amongst other things, reviewing the Group’s annual financial statements, reviewing and monitoring the extent of the non-audit services undertaken by external auditors, advising on the appointment of external auditors and reviewing the effectiveness of the Group’s internal controls and risk management systems. The ultimate responsibility for reviewing and approving the annual report and accounts and the half yearly reports remains with the Board. Membership of the Audit Committee comprises Mr Jonathan Shearman and it is chaired by Mr David Clark. The audit committee will meet formally not less than two times every year and otherwise as required.

Remuneration committee

The remuneration committee is responsible, within agreed terms of reference, for establishing a formal and transparent procedure for developing policy on executive remuneration and to set the remuneration packages of individual Directors. This includes agreeing with the Board the framework for remuneration of the Executive Directors, the company secretary and such other members of the executive management of the Group as it is designated to consider. It is furthermore responsible for determining the total individual remuneration packages of each Director including, where appropriate, bonuses, incentive payments and share options. No Director may be involved in any decision as to his/her own remuneration. The membership of the remuneration committee comprises Mr David Clark and the committee is chaired by Mr Jonathan Shearman. The remuneration committee will meet not less than two times a year and at such other times as the chairman of the committee shall require.

Nominations committee

The nominations committee is responsible, within agreed terms of reference, for reviewing the structure, size and composition of the board and recommending to the board any changes required, for succession planning and for identifying and nominating for approval of the board candidates to fill vacancies as and when they arise. The Committee is also responsible for reviewing the results of the board performance evaluation process and making recommendations to the board concerning suitable candidates for the role of senior independent director and the membership of the board’s committees and the re-election of directors at the annual general meeting. The membership of the nominations committee comprises of the entire board and the committee is chaired by Mr Ravi Takhar. The nominations committee will meet not less than two times a year and at such other times as the chairman of the committee shall require.