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Corporate governance

Letter from the Chairman, Kelvin Dushnisky

In 2015 we continued to review our governance model to ensure we maintain appropriate alignment with best practice requirements as well as Acacia’s operational objectives in order to support management and our business model. In line with areas identified in last year’s governance report, in 2015 we continued to perform key oversight and monitoring activities in the context of operational and financial performance reviews, with a particular focus on supporting management in the execution of further cost control and asset optimisation reviews

These were conducted in light of wider market factors that placed operational and financial constraints on our industry throughout the year. In addition, this year we undertook various governance processes, procedures and systems reviews, as necessary, to support the enhanced statements we have made in this year’s Annual Report in the context of internal control and risk management assessment and monitoring, ongoing business viability and going concern.

Lastly, and again in line with Board commitments made in the 2014 Annual Report, this year we engaged Lintstock Limited (‘Lintstock’), to undertake our first externally-facilitated performance evaluation. This comprised an assessment of the Board as a whole, each of its Committees and individual Directors (including myself). The evaluation was conducted via a two-stage process, comprising the completion of tailored questionnaires and participation in individual interviews by each Director. The findings were presented to, and collectively considered by, all Directors. Overall, the Board concluded it had operated effectively throughout the reporting period.

Nevertheless, and as should be expected from any effective evaluation process, opportunities for improvement and specific priorities were identified and these have been taken into account when structuring our focus areas for 2016. Among other actions, the Board agreed it should continue its visits to major operations in order to maintain appropriate knowledge of the business, to ensure it remains visible to the operations and has access to a broad group of executives and employees. It also agreed to consider revising the time scheduled for some meetings, to review the allocation of time to core topics and, in particular, to review opportunities to schedule additional strategy and risk sessions.

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