Corporate governanceThe directors appreciate the importance of ensuring that the REA group's affairs are managed effectively and with integrity.
The board of REA currently comprises one executive director and six non-executive directors. The directors believe that the diversity of gender and ethnic backgrounds and complementary skills of individual board members are appropriate for the size and strategic direction of the group and for the challenges that it faces. Their knowledge is of specific relevance to the nature and geographical location of the REA group's operations, directors bringing valuable insights into, variously, the plantation industry, business in Indonesia and the group’s affairs.
The board is responsible for the proper leadership of REA in meeting its objects for the long term sustainable success of the company, the community in which it operates and its shareholders. The board has a schedule of matters reserved for its decision which is kept under review. The chairman and managing director have defined separate responsibilities under the overall direction of the board.
The board has appointed audit, nomination and remuneration committees to undertake certain of its functions with written terms of reference:
The REA group has established a continuous process for identifying, evaluating and managing the principal risks that it faces in the context of the group’s strategic objects. Risks include those arising from environmental, social and governance matters. The board regularly reviews the process and, assisted by the audit committee and the group’s Indonesian operations internal audit function, the effectiveness of the group's system of internal control.
The board attaches importance not only to the process of controlling risks but also to promoting an internal culture in which all REA group staff are conscious of the risks arising in their particular areas of activity, are open with each other in their disclosure of such risks and combine together to mitigate risk.