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52 Qantas Annual Report 2009
Corporate Governance Statement
OVERVIEW
Corporate Governance is core to ensuring
the creation, protection and enhancement
of shareholder value. The Board maintains,
and ensures that Qantas Management
maintains, the highest level of corporate
ethics. The Board comprises a majority of
Independent Non-Executive Directors who,
together with the Executive Directors, have
an appropriate balance of skills, experience
and expertise.
The Board endorses the ASX Corporate
Governance Council’s Corporate
Governance Principles and
Recommendations, 2nd Edition
(ASX Principles).
THE BOARD LAYS SOLID FOUNDATIONS FOR
MANAGEMENT AND OVERSIGHT
The Board has adopted a formal Charter which is available on the
Corporate Governance section of the Qantas website.
The Board is responsible for setting and reviewing the strategic direction of
Qantas and monitoring the implementation of that strategy by Executive
Management, including:
•promotingethicalandresponsibledecision-making;
•monitoringcompliancewithlaws,taxobligations,regulations,applicable
accounting standards and corporate policies (including the Qantas Code
ofConduct&Ethics);
•overseeingtheQantasGroup,includingitscontroland
accountabilitysystems;
•approvingtheannualoperatingbudgetandmonitoringtheoperating
andfinancialperformanceoftheQantasGroup;
•approvingandmonitoringthecapitalmanagementstrategy,including
majoracquisitionsanddivestitures;
•appointingandremovingtheChiefExecutiveOfficer(CEO)and
ChiefFinancialOfficer(CFO);
•monitoringtheperformanceoftheCEO,CFOand
ExecutiveManagement;
•developingBoardandExecutiveManagementandsuccessionplanning;
•ensuringaclearrelationshipbetweenperformanceandexecutive
remuneration;
•monitoringtheGroup’ssystemofriskmanagementandinternal
complianceandcontrol;and
•ensuringthatthemarketandshareholdersarefullyinformedof
material developments.
TheCEOisresponsiblefortheday-to-daymanagementoftheQantas
Group with all powers, discretions and delegations authorised, from time
totime,bytheBoard.DetailsoftheCEO’sManagementTeamaredetailed
on page 5.
Board Meetings
The Board holds seven formal Meetings a year, one of which serves to
review and approve the strategy and financial plan for the next financial
year. Additional Meetings are held as required. The Board also meets
with Executive Management to consider matters of strategic importance
to Qantas.
Details of the Directors, their qualifications, skills and experience are
detailed on pages 50 and 51. Attendance at 2008/09 Board and
Committee Meetings is detailed on page 63.
Australian Provisions
The Qantas Constitution contains the following provisions required by the
Qantas Sale Act to ensure the independence of the Qantas Board and to
protect the airline’s position as the Australian flag carrier:
•headofficemustbeinAustralia;
•twothirdsoftheDirectorsmustbeAustraliancitizens;
•ChairmanmustbeanAustraliancitizen;
•quorumforaDirectors’MeetingmustincludeamajorityofDirectors
whoareAustraliancitizens;
•maximum49percentaggregateforeignownership;
•maximum35percentaggregateforeignairlineownership;and
•maximum25percentownershipbyoneforeignperson.