LIBSTAR IS COMMITTED TO THE PROMOTION OF GOOD CORPORATE GOVERNANCE AND TO THE PRINCIPLES OF OPENNESS, INTEGRITY AND ACCOUNTABILITY IN ITS DEALINGS WITH ALL ITS STAKEHOLDERS.
The group is owned by shareholders with real responsibility to be good corporate citizens. Effective and transparent governance are cornerstone principles by which the Board of directors, Executive and management teams that control Libstar, abide. Stakeholders include Libstar shareholders, employees, customers, suppliers and the community. Libstar will endeavour to comply with the highest possible standards of accountability and integrity in the running of its business and in reporting to shareholders and other stakeholders.
The company is working towards reporting on compliance with the principles and pronouncements on good corporate governance, including the King Code on good corporate governance, where appropriate. For instance, one of the requirements of King III is that the board of directors should comprise a majority of non-executive and independent directors. The needs of a growing company are well managed by a highly active and responsive board as opposed to a widely representative board that sometimes involves cumbersome and slow processes. As the group matures we will address these standards.
Code of Conduct
The board of Libstar acknowledges the importance of sound corporate governance and the guidelines set out in the Principles of Corporate Governance and Code of Best Practice, and the directors intend to embrace this as far as is possible.
Board of Directors
The primary responsibility of the board includes the setting of Libstar's strategic direction, approval and regular review of business plans, budgets and policies. The board will retain full and effective control over the organisation on all material matters, with power and authorities delegated to management clearly and comprehensively documented and regularly reviewed. Libstar aims to operate ethically and to conform to the highest standards of corporate governance. It will also ensure that the internal controls, both operational (including environmental) and financial, are adequate and that through effective internal controls the financial accounts accurately and objectively reflect Libstar's business. There exists a clear division of responsibilities at board level that ensures a balance of power and authority, such that no one individual has unfettered powers of decision making. The board is also responsible for monitoring the activities of the executive management. The executive directors and management team are responsible for the day-to-day management of Libstar's operations.
The group sets the highest level of ethical standards for all its employees. Libstar remains committed to conducting business in a manner that is above reproach in all reasonable circumstances. In addition, the group strives to provide a work environment that is non-discriminatory, and with solid safety, health and environmental practices. Libstar's values are aimed at building and maintaining a culture that promotes professional conduct, commitment, and open and honest communication. Integrity and business ethics are the trademark of Libstar's code of ethics.
Operational and financial risks are managed through a system of internal and financial controls, which are monitored by management and the group's finance executives. The board and management are responsible for risk management and ensuring that an effective and ongoing risk management process is in place, measuring the potential impact of risk against a broad set of assumptions and introducing risk mitigation procedures to reduce the exposure to an acceptable level.
The company has implemented systems of internal control designed to detect and minimise the risk of fraud, potential liability and loss and material misstatement. These systems also provide reasonable, but not absolute, assurance regarding compliance with statutory laws and regulations and the maintenance of proper accounting records. The purpose of the systems of internal control is to maintain a sound system of risk management and to sustain an effective internal control environment, ensuring that the financial statements are honest and reliable, as well as to safeguard the group's assets.