Qantas 2001 Annual Report Download - page 35

THE SPIRIT OF AUSTRALIA p33
ENVIRONMENTAL REGULATIONS
The Qantas Group’s operations are subject to a range of
Commonwealth, State, Territory and international environmental
legislation. The Qantas Group is committed to a high standard of
environmental performance and the Board places particular focus
on the environmental aspects of its operations through the Safety,
Environment & Security Committee, which is responsible for
monitoring compliance with these regulations and reporting
to the Board.
The Directors are satisfied that adequate systems are in place for
the management of the Qantas Group’s environmental exposures
and environmental performance. The Directors are also satisfied
that all relevant licences and permits are held and that appropriate
monitoring procedures are in place to ensure that those licences and
permits are complied with. Any significant environmental incidents
are reported to the Board.
The Directors are not aware of any breaches of any environmental
legislation or of any significant environmental incidents during the
financial year which are material in nature.
DERIVATIVES AND OTHER
FINANCIAL INSTRUMENTS
The Qantas Group’s activities expose it to changes in interest rates,
foreign exchange rates and fuel prices. It is also exposed to credit
risks from its operations. The Qantas Group manages these risk
exposures using various financial instruments, based upon a set of
policies approved by the Board. Compliance with these policies is
strictly monitored by management and reported to the Board.
It is the Qantas Group’s policy not to enter, issue or hold derivative
financial instruments for speculative trading purposes.
INDEMNITIES AND INSURANCE
Under Clause 12.1 of the Qantas Constitution, Qantas is required
to indemnify, to the extent permitted by law, each officer of Qantas
(subject to certain qualifications) against:
•liability to third parties (other than related Qantas Group
companies) arising out of conduct undertaken in his or her
capacity as a Qantas officer, unless the liability arises out of
conduct involving a lack of good faith, wilful misconduct or
reckless behaviour; and
•the costs and expenses of successfully defending legal proceedings
arising out of conduct undertaken in his or her capacity as a
Qantas officer.
The Directors listed on page 29 and the secretaries of Qantas, being
Brett Johnson, Garie Hillier and Steve Heesh, have the benefit of the
indemnity in Clauses 12.1 to 12.4 of the Qantas Constitution, which
also applies to all executive officers of Qantas. Qantas has insured
against amounts which it may be liable to pay on behalf of officers
pursuant to Clauses 12.1 to 12.4 of the Qantas Constitution or which
it otherwise agrees to pay by way of indemnity.
During the financial year, Qantas paid a premium for Directors’
and Officers’ liability insurance policies, which cover all Directors
and officers of the Qantas Group.
Details of the nature of the liabilities covered, and the amount of
the premium paid in respect of the Directors’ and Officers’ insurance
policies are not disclosed, as such disclosure is prohibited under the
terms of the contracts.
ROUNDING
Qantas is a company of a kind referred to in ASIC Class Order 98/100
dated 10 July 1998 and in accordance with that Class Order, amounts
in the Concise Financial Report, Financial Report and Directors’ Report
have been rounded off to the nearest one hundred thousand dollars
unless otherwise indicated.
Signed pursuant to a Resolution of the Directors:
MARGARET JACKSON
Chairman
GEOFF DIXON
Chief Executive Officer
Sydney, 3 September 2001