Nomination

The Board has established a Remuneration & Nomination Committee that, since June 2007 is comprised of the three non-executive directors. The committee reviews its composition as required to ensure that the Board has the appropriate mix of expertise and experience. When a vacancy exists, for whatever reason, or where it is considered that the Board would benefit from the services of a new director with particular skills, candidates with the appropriate expertise and experience are considered. The Board then appoints the most suitable candidate who must stand for election at the next general meeting of shareholders.

Remuneration

At the date of this report, the Remuneration and Nomination Committee comprises Messrs Gunzburg, Ferrier and Abery. The role of the Remuneration & Nomination Committee is to ensure that appropriate remuneration policies are in place that are designed to meet the needs of the Company and to enhance corporate and individual performance. No formal meetings of the committee were held during the year.

The Remuneration & Nomination Committee is responsible for reviewing:

• executive remuneration and incentive policies;
• the remuneration packages of senior management;
• the Company's recruitment, retention and termination policies and procedures for senior management;
• superannuation arrangements;
• the performance management system operating within the organisation and its effectiveness; and
• the remuneration framework for directors.

Remuneration levels are competitively set to attract suitably qualified and experienced directors and senior executives, having regard for Company performance. Shareholders in general meeting have approved a directors' fee pool limit of $110,000 from which non-executive directors' fees may be paid.

The performance of the Managing Director and other executive directors is reviewed by the Remuneration & Nomination Committee. The performances of the other executives and staff are reviewed on an annual basis by the Managing Director.