The Board is responsible for the determination of the Company’s Investment Objective and Policy and has overall responsibility for maximising the Company’s success by directing and supervising the affairs of the business, meeting the appropriate interests of Shareholders and relevant stakeholders, and also ensuring the protection of investors. As part of the governance framework, the Board has delegated some of its responsibilities to five committees: the Audit and Risk Management Committee, the Nomination Committee, the Management Engagement Committee, Remuneration Committee and the Portfolio Committee. Each committee has written terms of reference, approved by the Board, summarising its objectives, remit and powers. Their terms of reference are reviewed and approved annually by the Board and the respective committee Chairs report on their activities to the Board.
The primary functions of the Audit and Risk Management Committee are:
The Audit and Risk Management Committee formally reports its findings to the Board, identifying any matters on which it considers that action or improvement is needed, and makes recommendations on the steps to be taken.
Audit and Risk Management Committee Report 2023
Audit and Risk Management Committee Terms of Reference
The Management Engagement Committee provides a formal mechanism for the review of the performance of the Investment Adviser and the Company’s other advisers and service providers. It carries out this review through consideration of a number of objective and subjective criteria and through a review of the terms and conditions of the advisers’ appointments with the aim of evaluating performance, identifying any weaknesses and ensuring that their terms are competitive, fair and reasonable for Shareholders.
The principal responsibility of the Nomination Committee is to ensure that, collectively and at any given time, the members of the Board possess the necessary balance of knowledge, skills and experience to support and develop the strategy of the Company. In seeking to achieve this, the Nomination Committee recommends new Board appointments as and when considered appropriate and ensures that appropriate succession planning procedures are in place. In accordance with our Terms of Reference, the Chair of the Nomination Committee reports its conclusions to the Board and it is the Board as a whole which is responsible for making new appointments upon its recommendation. The committee keeps under review and evaluates the composition of the Board and its committees to maintain the appropriate balance of skills, knowledge, experience and independence to ensure their continued effectiveness. Appropriate succession plans are also kept under review.
The Remuneration Committee is responsible for recommending and monitoring the level and structure of remuneration for all the Directors, taking into account the time commitments and responsibilities of Directors and any other factors which it deems necessary, including the recommendations of the AIC Code. The Remuneration Committee is also responsible for the review of any workforce remuneration and related policies, and the alignment of incentives and rewards with culture and taking these into account when setting the policy for any executive director remuneration. At the moment this involves oversight of the arrangements for the employees of Hipgnosis Songs Group, managed by The Family (Music) Limited.
The Portfolio Committee provides a formal mechanism for the following functions:
The principal function of the Environmental, Social and Governance Oversight Committee is to provide a formal mechanism for the oversight of the Investment Adviser in terms of their Environmental, Social and Governance responsibilities. We monitor the policies in place in terms of the Supplier Code of Conduct and the Responsible Investment Policy and carry out this function through regular meetings with and updates from the Investment Adviser including consideration on a quarterly basis of a compliance certificate confirming the guidelines and principles being adhered to as well as the responsibilities beholden in consequence thereof.
Environmental, Social and Governance Oversight Committee Report 2023
Environmental, Social and Governance Oversight Committee Terms of Reference