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CORPORATE GOVERNANCE
CORPORATE GOVERNANCE PRINCIPLES Good corporate governance should provide proper incentives for the Board and management to pursue objectives that are in the interests of the company and its members and stakeholders. AEMO believes there is a clear correlation between a culture focused on achieving and maintaining high standards of corporate governance, and creating value for our members and the broader community. AEMO has used a range of sources to develop its approach to corporate governance, including the Australian Securities Exchange (ASX) Corporate Governance Principles and Recommendations to the extent that they are applicable to its corporate structure, as well as considering overseas developments in corporate governance. The Board has established corporate governance policies and charters; these are outlined later in this report.
Composition of the Board The Board, with the assistance of Board committees, oversees AEMO’s business affairs to meet the company’s objectives and responsibilities under relevant law and regulatory regimes. The Board reviews policies and planning objectives, and monitors how these are implemented. It also monitors the performance and cost-effectiveness of AEMO’s operations and systems. There are currently nine members on AEMO’s Board: an independent Chairman, the Managing Director (who is also the Chief Executive Officer), and seven non-executive directors. Collectively the Board possesses the core skills and experience prescribed in the AEMO Constitution. The selection process for new directors is overseen by the Nomination Committee with the interview process and recommendations being made by the independent