Corporate Governance Policy

Introduction

Hankinson Painting Group is a leading Painting Contractor in the UK. Our primary aim is the delivery of sustainable shareholder value.

Wherever Hankinson Painting Group operates, the health and safety of our employees, suppliers and customers is our first priority. We work as far as possible to understand the ethos and aspirations of our host clients and communities, respecting all applicable laws and customs. We value our people, recognising their value and contribution to our business.

Objectives

The aim of this policy is to outline the Group’s corporate governance structure and to state the principles of good governance that underpin our operations. In determining the corporate governance policy, the Board has sought to apply the principles and provisions of financial regulations as well as industry best practice and other codes of conduct.

Policy Statement

The Board

Hankinson Painting Group’s Board Members are responsible collectively for the success of the Group and the achievement of its objectives. The Chairman and Directors provide it with a broad base of knowledge and experience. Their participation is vital in guiding the process of setting strategic aims and for maintaining corporate accountability.

Hankinson Painting Group’s Directors are elected by shareholders at the Annual General Meeting following their appointment and, thereafter, are subject to re-election at least once every three years.

Management Structure

Hankinson Painting Group’s management structure is designed to facilitate a clear focus on business performance and the achievement of the Group's objectives.

Communications

The Group’s affairs are conducted in the interests of shareholders, employees, local communities and customers, as well as others affected by the Group’s activities. Our commitment, both in principle and practice, is for maximum transparency consistent with good governance and commercial confidentiality. We treat shareholders equally in their access to information and seek to avoid making any information available on a selective basis.

Any request for information not already in the public domain is referred to the Directors of Hankinson Painting Group. Only designated executives are allowed to act as 'spokesperson' for the Group to ensure that selective disclosures are avoided at all times.

Hankinson Painting Group welcomes questions, concerns and criticism from all its stakeholders, which can be made through a variety of communication channels.

Complaint, whistle-blowing and grievance procedures exist for both customers and employees and these are detailed in our Employee Handbook.

Our vision and values statement provides all Group employees with direction as to how we do business and the principles to be applied in our behaviour. This statement is supported by a set of key policies and procedures to help ensure that high standards are met. The Company has established core competencies as metrics of appropriate behaviour and these have been published within the Company for use in evaluation of individual employee performance.

Risk Management

The Directors maintain a sound system of internal control to safeguard the Group’s assets, but recognise that the creation of shareholder value is the reward for taking and accepting risk. The Directors are responsible for the Group’s system of internal control and for reviewing its effectiveness in providing a responsible assessment and mitigation of risks. They have established procedures to identify, evaluate and manage specific risks faced by the Group. These procedures include the review of financial, operational and compliance controls and risk management procedures. They are designed to manage rather than eliminate risk because of the limitations inherent in any such system. Accordingly, the procedures provide reasonable but not absolute assurance against material misstatement or loss. Assurance functions, including internal auditors and health, safety and environmental auditors perform reviews of control activities and provide regular written and oral reports to Directors and Management Committees.

Certain risks, for example natural disasters, cannot be mitigated to an acceptable degree using internal controls. Such major risks are transferred to third parties in the international insurance markets, to the extent considered appropriate.

Financial Reporting

The Directors are responsible for maintaining proper accounting records in accordance with the UK Companies Act 1985. The Directors, Senior Management, Senior Financial Managers and other employees preparing financial statements are required not only to conduct themselves with integrity and honesty but also in accordance with the ethical standards of their profession and/or business. They must promote full, fair, accurate, timely and understandable disclosures in compliance with all applicable laws, rules and regulations in all financial statements.

Hankinson Painting Group’s financial statements are prepared in accordance with the most appropriate accounting policies consistently applied and supported by reasonable and prudent judgements.

The Board is responsible for establishing and maintaining internal control over financial reporting to provide assurance regarding the reliability of financial statements. The Directors have a general responsibility for taking such steps as are reasonably open to them to safeguard assets, and to prevent and detect fraud and other irregularities. They conduct an annual review of the effectiveness of the Group’s system of internal controls.

Shareholders

In order to deliver superior returns to shareholders over time, Hankinson Painting Group takes a long term and responsible approach to the Group’s business. Notices of shareholders meetings, proposed resolutions and explanations encourage shareholders to make informed decisions. Shareholders unable to attend meetings are encouraged to appoint, either on paper or in electronic form, a proxy to vote. The Chairman ensures that significant issues and concerns of shareholders and others concerned with the Company’s business are communicated to the Board as a whole and that they remain in touch with shareholder opinion.

Business Integrity

Hankinson Painting Group undertakes its business with integrity, honesty and fairness at all times, building from a foundation of compliance with relevant laws, regulations, codes of conduct and international standards. The Board has policies on ethics and donations that prohibit conflicts of interest, fraud, bribery, improper practices and political involvement, while reserving its right to campaign of its legitimate business interests.

Applicability

This policy applies in all areas of the Group’s business.

S.R. Hankinson
Group Chief Executive