Corporate Governance

The Directors recognise the value and importance of high standards of corporate governance and observe the requirements of the UK Code of Corporate Governance ("the Code") to the extent they consider appropriate in light of the Company’s size, stage of development and resources. To the extent that the requirements of the Code are not met, the Directors provide an explanation as to the reasons for non-compliance. The Company also follows where relevant the recommendations on corporate governance of the Quoted Companies Alliance for companies with shares traded on AIM.

The Directors have established an audit committee, a remuneration committee and a nomination committee with formally delegated duties and responsibilities.

The audit committee determines the terms of engagement of the Company’s auditors and determines, in consultation with the Company’s auditors, the scope of the audit. It receives and reviews reports from the Company’s management and the Company’s auditors relating to the interim and annual accounts and the accounting and internal control systems in use by the Company. The audit committee has unrestricted access to the Company’s auditors.

The remuneration committee reviews the scale and structure of the Executive Directors’ remuneration and the terms of their service agreements with due regard to the interests of Shareholders. No Director is permitted to participate in discussions or decisions concerning his own remuneration. The Directors comply, and procure compliance with, Rule 21 of the AIM Rules relating to dealings by directors and other applicable employees in the Company’s securities and, to this end, the Company has adopted an appropriate share dealing code.

The nomination committee is responsible for making recommendations on Board appointments and on maintaining a balance of skills and experience on the Board and its committees.