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Corporate Governance

The K3 Board is committed to maintaining high standards of corporate governance and adheres to the Quoted Companies Alliance’s (QCA) Corporate Governance Code for small and mid-size quoted companies (the “Code”).

Following changes to AIM rules on 30 March 2018, and revisions to said code in April 2018, there is a requirement for AIM companies to comply or explain against a recognised corporate governance code by 28 September 2018. The Code states what is considered to be appropriate corporate governance arrangements for growing companies, requiring companies to provide an explanation about how they are meeting the principles through certain prescribed disclosures.

The Chairman (Ian Mattioli) leads the Board and is responsible for directing the Company. He manages the Board agenda and ensures that all Directors have the capability, structure and support to effectively contribute their various talents and experience in the development and implementation of the Company’s strategy.

The Chairman is responsible for ensuring that the Board implements, maintains and communicates effective corporate governance processes and for promoting a culture of openness and debate designed to foster a positive governance culture throughout the Company.

The Board has considered how each principle is applied and provides below an explanation of the approach taken in relation to each and how they support the Company’s medium to long-term success.

Throughout FY18, the Group introduced a number of governance initiatives, these include:

  • The Board extended the use of the Group’s Long Term Incentive Plan, taking the number on the scheme to 31. Additionally, further employee wellbeing initiatives were sought in order to attract and retain key personnel, these included a Death in Service policy and an agreement to implement a Healthcare Plan for all employees. The Healthcare Plan is due to be adopted in October 2018.
  • The directors continue to nurture an open and communicative culture with senior management and staff, encouraging participation in idea sharing and suggestions. During FY18 a company intranet was launched in order to improve communication across the Group.
  • The Group’s vision and culture was regularly reinforced through regular meetings with senior management and department heads.

As part of the year’s Corporate Governance exercise, we have identified the following areas which we intend to consider during FY19

  • We will consider whether it is beneficial that a third party conducts a Board evaluation every three years.
  • Consider utilising a strategy consultant to encourage greater participation in idea sharing and to further develop relationships.
  • Consider whether it is beneficial that the Chairman is available to meet key shareholders on an annual basis.

The Board considers that it does not depart from any of the principles of the QCA Code.

This page was last updated: 27 September 2018