02 Governance, Structure & People RELATED ENTITY TRANSACTIONS

CEFC ANNUAL REPORT / 2014–15

RELATED ENTITY TRANSACTIONS

The CEFC approach to dealings with related entities during the 2014–15 year was governed firstly by the procedures of the CEFC Act and PGPA Act, and then by the Board Audit and Risk Committee which is chartered to review all related party transactions.

Board Members disclose their standing interests to the other directors and conflicts of interest are managed strictly in accordance with the law.

Declarations of new conflicts of interest are a standing item at every Board meeting and the company maintains an embargo register of exchange tradable instruments of entities with which the CEFC has dealings, and with which both Board members and staff avoid trade.

Where the relation to the other entity is via a Board Member and the interest is material, the Board Member takes no part in the decision on whether to enter the transaction or decline.

In addition to the statutory requirements around declarations of interest and procedures for dealing with conflicts of interest, the Board and CEO have established a system of declaration of interests for the Executive and staff, and an embargo register for the purposes of preventing conflicts of interest in the trade of stocks in companies that the CEFC may be doing business with.

Individual related entity transactions are disclosed in accordance with the relevant standards at Note 12 within the Financial Statements. The CEFC has undertaken a number of related party transactions during the reporting period which reflects the method of integration of Low Carbon Australia Limited (LCAL). 

LCAL and the CEFC have a common sole owner in the Australian Government, and Mr Martijn Wilder AM was Chair of the LCAL Board while serving on the CEFC Board. The CEFC has also done business with Baker & McKenzie, a law firm in which Mr Wilder is a partner.