{"id":161,"date":"2020-04-01T21:15:03","date_gmt":"2020-04-01T13:15:03","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=161"},"modified":"2020-05-14T12:30:32","modified_gmt":"2020-05-14T04:30:32","slug":"management-requirements","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/listings\/management-requirements\/","title":{"rendered":"Management Requirements"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;ContentWrapper2&#8243; module_id=&#8221; &#8221; module_class=&#8221;content-wrapper2&#8243; _builder_version=&#8221;4.0.5&#8243; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;0px||0px|||&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; transparent_background=&#8221;off&#8221; padding_mobile=&#8221;off&#8221; make_fullwidth=&#8221;off&#8221; use_custom_width=&#8221;off&#8221; width_unit=&#8221;on&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; _builder_version=&#8221;3.25.3&#8243; width=&#8221;100%&#8221; max_width=&#8221;100%&#8221; z_index_tablet=&#8221;500&#8243; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumbs&#8221; module_class=&#8221;breadcrumb-wrapper&#8221; _builder_version=&#8221;3.27.4&#8243;]<div class=\"breadcrumb\">\r\n<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/listings\/' title='Listings'>Listings<\/a><\/li><li><span>Management Requirements<\/span><\/li><\/ul>\r\n<\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Section Title&#8221; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;229966&#8243;]<h2 class=\"section-title\">Listings<\/h2>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Content MenuBar2&#8243; _builder_version=&#8221;4.4.3&#8243;]<div class=\"content-menubar2\">\r\n<div class=\"page-menu-panel2\">\r\n<h3>Listings<\/h3>\r\n<span class=\"hamburger2\"><\/span>\r\n<\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-157\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/likely-cost\/\">Likely Cost of Submission<\/a><\/li>\n<li class=\"page_item page-item-158 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/\">Advising on Requirements for Listing<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-185\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/listing-key-requirements\/\">Key Requirements for Listing<\/a><\/li>\n\t<li class=\"page_item page-item-181\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/management-requirements\/\">Management Requirements for Mineral Companies<\/a><\/li>\n\t<li class=\"page_item page-item-182\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/reqirements-resources\/\">Requirements Relating To Resources and Reserves<\/a><\/li>\n\t<li class=\"page_item page-item-183\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/valuations\/\">Valuations<\/a><\/li>\n\t<li class=\"page_item page-item-184\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/requirements-control-assets\/\">Requirements Regarding Control Over Mining Assets<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-159\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/manage-process\/\">Managing the Process<\/a><\/li>\n<li class=\"page_item page-item-160\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/connected-transactions\/\">Connected Transactions<\/a><\/li>\n<li class=\"page_item page-item-161\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/management-requirements\/\">Management Requirements<\/a><\/li>\n<li class=\"page_item page-item-162\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/asset-spinoff\/\">Advising on Asset &#8220;Spin Offs&#8221;<\/a><\/li>\n<li class=\"page_item page-item-163\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-directors\/\">Advising Directors<\/a><\/li>\n<li class=\"page_item page-item-164\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/disclosure\/\">Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/a><\/li>\n<li class=\"page_item page-item-165\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-restructuring\/\">Advising on Restructuring and Holding Structures<\/a><\/li>\n<li class=\"page_item page-item-166\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/pre-ipo-suitability\/\">Pre-IPO Submission on Suitability for Listing<\/a><\/li>\n<li class=\"page_item page-item-167\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/publicity-requirements\/\">Publicity Requirements During Listing Process<\/a><\/li>\n<li class=\"page_item page-item-168 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/\">On-Going Announcement Requirements For Listed Companies<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-191\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/chapter-18\/\">Chapter 18 \u2013 On-going Announcements<\/a><\/li>\n\t<li class=\"page_item page-item-192\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/notifiable-connected-and-other-transactions\/\">Notifiable, Connected and Other Transactions<\/a><\/li>\n\t<li class=\"page_item page-item-193\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/company-matters-corporate-governance-and-directors-and-officers\/\">Company Matters, Corporate Governance and Directors and Officers<\/a><\/li>\n\t<li class=\"page_item page-item-194\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/shares\/\">Shares<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\r\n<\/div>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.2&#8243;]<h1 class=\"content-title\">Management Requirements<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.4.3&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243;]<h2>Management Requirements for Mineral Companies<\/h2>\r\n\r\n<p><em>Main Board<\/em><\/p>\r\n\r\n<p>A new applicant mineral company that cannot satisfy the profit test, the market capitalisation\/revenue\/cash flow test\r\n\tor the market capitalisation\/revenue test described above may still be accepted for listing if it establishes to the\r\n\tExchange&#8217;s satisfaction that its directors and senior management, taken together, have a minimum of 5 years&#8217;\r\n\texperience relevant to the exploration and\/or extraction activity that the mineral company is pursuing.<\/p>\r\n\r\n<p>Details of such experience must be included in the applicant&#8217;s listing document. The Exchange expects most companies\r\n\tseeking a waiver from the track record \/ financial tests based on management experience to be at the development\r\n\tstage, although companies which are in production are not necessarily precluded as they may have junior assets which\r\n\tare yet to be developed. Companies that are in production will however need to be able to show a clear path to\r\n\tprofitability in order to be accepted for listing.<\/p>\r\n\r\n<p><em>GEM<\/em><\/p>\r\n\r\n<p>There is no equivalent waiver from the requirement under the GEM Listing Rules for cash flow from operating\r\n\tactivities of at least HK$20 million over the 2 preceding years. The Exchange may however waive the 2-year trading\r\n\trecord requirement if satisfied that the directors and senior management have a minimum of 5 years&#8217; relevant\r\n\texperience. The cash flow requirement must however be met for the shorter trading record period.<\/p>\r\n\r\n<p><em>Chapter 18<\/em><\/p>\r\n\r\n<p>Charltons is experienced in advising mineral companies and their sponsors and underwriters on the Exchange&#8217;s\r\n\tmanagement experience requirements and making applications for waivers based on management experience. At a\r\n\tpreliminary stage we can coordinate the collection and verification of supporting documentation in relation to\r\n\tdirectors&#8217; and senior managements&#8217; experience. Mineral companies should note that the minimum 5 years&#8217; experience\r\n\tshould be relevant to the exploration and\/or extraction activity that the mineral company is pursuing. For example,\r\n\tthe directors and senior management of a mineral company involved in the exploration and production of base metals\r\n\tshould have experience in the base metals sector. Experience in, for example, coal or iron ore exploration and\/or\r\n\tproduction or even more general industry experience may not be deemed relevant for the purposes of satisfying the 5\r\n\tyears&#8217; experience requirement.<\/p>\r\n\r\n<p><em>Independent non-executive directors<\/em><\/p>\r\n\r\n<p>There will generally be no maximum number of directors stated in the Articles of Association of an issuer. However,\r\n\tunder the Listing Rules, every board of directors of a listed issuer must include at least three independent\r\n\tnon-executive directors. At least one of the independent non-executive directors must have appropriate professional\r\n\tqualifications or accounting or related financial management expertise.<\/p>\r\n\r\n<p><em>Duties, Competence and Collective and Individual Responsibility<\/em><\/p>\r\n\r\n<p>Listing Rule 3.08 sets out the general criteria directors are expected to meet in the performance of their duties.\r\n\tDirectors must satisfy the required levels of skill, care and diligence. Delegating their functions is permissible\r\n\tbut does not absolve them from their responsibilities or from applying the required levels of skill, care and\r\n\tdiligence. Directors do not satisfy these required levels if they pay attention to the issuer&#8217;s affairs only at\r\n\tformal meetings. At a minimum, they must take an active interest in the issuer&#8217;s affairs and obtain a general\r\n\tunderstanding of its business. They must follow up anything untoward that comes to their attention.<\/p>\r\n\r\n<p>Where a proposed independent non-executive director fails to meet any of the independence guidelines set out in the\r\n\tListing Rules, the listed issuer must demonstrate to the satisfaction of the Exchange, prior to the proposed\r\n\tappointment, that the person is independent. The listed issuer must also disclose the reasons why such person is\r\n\tconsidered to be independent in the announcement of his appointment as well as in the next annual report published\r\n\tafter his appointment. In cases of doubt, the listed issuer must consult the Exchange at an early stage.<\/p>\r\n\r\n<p>Every director of a listed issuer must satisfy the Exchange that he has the character, experience and integrity and\r\n\tis able to demonstrate a standard of competence commensurate with his position as a director of a listed issuer. The\r\n\tExchange may request further information regarding the background, experience, other business interests or character\r\n\tof any director or proposed director of a listed issuer.<\/p>\r\n\r\n<p><em>Board diversity<\/em><\/p>\r\n\r\n<p>On 7 September 2012 The Exchange published a consultation paper to seek comments on its proposed amendments to the\r\n\tCorporate Governance Code and Corporate Governance Report (Code) in relation to board diversity.<\/p>\r\n\r\n<p>The Exchange has since made available the <a target=\"_blank\" href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/consult_paper.pdf\" rel=\"noreferrer noopener\">consultation paper<\/a> and <a target=\"_blank\" href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/consult_conclusion.pdf\" rel=\"noreferrer noopener\">consultation conclusions<\/a> along with a set of associated <a target=\"_blank\" href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/FAQ_19.pdf\" rel=\"noreferrer noopener\">Frequently Asked Questions<\/a>.<\/p>\r\n\r\n<p>The amendments to the Code will be effective on 1 September 2013<\/p>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;SubM-Children&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-157\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/likely-cost\/\">Likely Cost of Submission<\/a><\/li>\n<li class=\"page_item page-item-158 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/\">Advising on Requirements for Listing<\/a><\/li>\n<li class=\"page_item page-item-159\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/manage-process\/\">Managing the Process<\/a><\/li>\n<li class=\"page_item page-item-160\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/connected-transactions\/\">Connected Transactions<\/a><\/li>\n<li class=\"page_item page-item-161\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/management-requirements\/\">Management Requirements<\/a><\/li>\n<li class=\"page_item page-item-162\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/asset-spinoff\/\">Advising on Asset &#8220;Spin Offs&#8221;<\/a><\/li>\n<li class=\"page_item page-item-163\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-directors\/\">Advising Directors<\/a><\/li>\n<li class=\"page_item page-item-164\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/disclosure\/\">Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/a><\/li>\n<li class=\"page_item page-item-165\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-restructuring\/\">Advising on Restructuring and Holding Structures<\/a><\/li>\n<li class=\"page_item page-item-166\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/pre-ipo-suitability\/\">Pre-IPO Submission on Suitability for Listing<\/a><\/li>\n<li class=\"page_item page-item-167\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/publicity-requirements\/\">Publicity Requirements During Listing Process<\/a><\/li>\n<li class=\"page_item page-item-168 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/\">On-Going Announcement Requirements For Listed Companies<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][et_pb_text admin_label=&#8221;News Title&#8221; module_class=&#8221;content2-news-title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-subtitle\">Read our latest News<\/h1>[\/et_pb_text][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;6&#8243; include_categories=&#8221;23&#8243; show_author=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_excerpt=&#8221;off&#8221; show_pagination=&#8221;off&#8221; admin_label=&#8221;News Thumbs&#8221; module_class=&#8221;cu-blog&#8221; _builder_version=&#8221;4.4.2&#8243;][\/et_pb_blog][et_pb_text admin_label=&#8221;Click more news&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"bottom-click-more\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/news\/\">Click here to read more News<\/a><\/div>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25.3&#8243; custom_padding=&#8221;|||||false&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;\/legal\/listing\/management_requirements.jpg&#8221; admin_label=&#8221;Side Hero&#8221; module_class=&#8221;side-hero-wrapper&#8221; _builder_version=&#8221;4.4.3&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p><ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/listings\/' title='Listings'>Listings<\/a><\/li><li><span>Management Requirements<\/span><\/li><\/ul> Listings Listings <ul class=\"cm-parent\"><li class=\"page_item page-item-157\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/likely-cost\/\">Likely Cost of Submission<\/a><\/li>\n<li class=\"page_item page-item-158 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/\">Advising on Requirements for Listing<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-185\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/listing-key-requirements\/\">Key Requirements for Listing<\/a><\/li>\n\t<li class=\"page_item page-item-181\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/management-requirements\/\">Management Requirements for Mineral Companies<\/a><\/li>\n\t<li class=\"page_item page-item-182\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/reqirements-resources\/\">Requirements Relating To Resources and Reserves<\/a><\/li>\n\t<li class=\"page_item page-item-183\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/valuations\/\">Valuations<\/a><\/li>\n\t<li class=\"page_item page-item-184\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/exchange-prerequisites\/requirements-control-assets\/\">Requirements Regarding Control Over Mining Assets<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-159\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/manage-process\/\">Managing the Process<\/a><\/li>\n<li class=\"page_item page-item-160\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/connected-transactions\/\">Connected Transactions<\/a><\/li>\n<li class=\"page_item page-item-161\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/management-requirements\/\">Management Requirements<\/a><\/li>\n<li class=\"page_item page-item-162\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/asset-spinoff\/\">Advising on Asset &#8220;Spin Offs&#8221;<\/a><\/li>\n<li class=\"page_item page-item-163\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-directors\/\">Advising Directors<\/a><\/li>\n<li class=\"page_item page-item-164\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/disclosure\/\">Director&#8217;s and Shareholders&#8217; Disclosure Obligations<\/a><\/li>\n<li class=\"page_item page-item-165\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/advising-restructuring\/\">Advising on Restructuring and Holding Structures<\/a><\/li>\n<li class=\"page_item page-item-166\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/pre-ipo-suitability\/\">Pre-IPO Submission on Suitability for Listing<\/a><\/li>\n<li class=\"page_item page-item-167\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/publicity-requirements\/\">Publicity Requirements During Listing Process<\/a><\/li>\n<li class=\"page_item page-item-168 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/\">On-Going Announcement Requirements For Listed Companies<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-191\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/chapter-18\/\">Chapter 18 \u2013 On-going Announcements<\/a><\/li>\n\t<li class=\"page_item page-item-192\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/notifiable-connected-and-other-transactions\/\">Notifiable, Connected and Other Transactions<\/a><\/li>\n\t<li class=\"page_item page-item-193\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/company-matters-corporate-governance-and-directors-and-officers\/\">Company Matters, Corporate Governance and Directors and Officers<\/a><\/li>\n\t<li class=\"page_item page-item-194\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/listings\/ongoing-announcements\/shares\/\">Shares<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul> Management RequirementsManagement Requirements for Mineral Companies Main Board A new applicant mineral company that cannot satisfy the profit test, the market capitalisation\/revenue\/cash flow test or the market capitalisation\/revenue test described above may still be accepted for listing if it establishes to the Exchange&#8217;s satisfaction that its directors and senior management, taken together, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":155,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:heading -->\r\n<h2>Management Requirements for Mineral Companies<\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><em>Main Board<\/em><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>A new applicant mineral company that cannot satisfy the profit test, the market capitalisation\/revenue\/cash flow test or the market capitalisation\/revenue test described above may still be accepted for listing if it establishes to the Exchange's satisfaction that its directors and senior management, taken together, have a minimum of 5 years' experience relevant to the exploration and\/or extraction activity that the mineral company is pursuing.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Details of such experience must be included in the applicant's listing document. The Exchange expects most companies seeking a waiver from the track record \/ financial tests based on management experience to be at the development stage, although companies which are in production are not necessarily precluded as they may have junior assets which are yet to be developed. Companies that are in production will however need to be able to show a clear path to profitability in order to be accepted for listing.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><em>GEM<\/em><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>There is no equivalent waiver from the requirement under the GEM Listing Rules for cash flow from operating activities of at least HK$20 million over the 2 preceding years. The Exchange may however waive the 2-year trading record requirement if satisfied that the directors and senior management have a minimum of 5 years' relevant experience. The cash flow requirement must however be met for the shorter trading record period.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><em>Chapter 18<\/em><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Charltons is experienced in advising mineral companies and their sponsors and underwriters on the Exchange's management experience requirements and making applications for waivers based on management experience. At a preliminary stage we can coordinate the collection and verification of supporting documentation in relation to directors' and senior managements' experience. Mineral companies should note that the minimum 5 years' experience should be relevant to the exploration and\/or extraction activity that the mineral company is pursuing. For example, the directors and senior management of a mineral company involved in the exploration and production of base metals should have experience in the base metals sector. Experience in, for example, coal or iron ore exploration and\/or production or even more general industry experience may not be deemed relevant for the purposes of satisfying the 5 years' experience requirement.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><em>Independent non-executive directors<\/em><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>There will generally be no maximum number of directors stated in the Articles of Association of an issuer. However, under the Listing Rules, every board of directors of a listed issuer must include at least three independent non-executive directors. At least one of the independent non-executive directors must have appropriate professional qualifications or accounting or related financial management expertise.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><em>Duties, Competence and Collective and Individual Responsibility<\/em><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Listing Rule 3.08 sets out the general criteria directors are expected to meet in the performance of their duties. Directors must satisfy the required levels of skill, care and diligence. Delegating their functions is permissible but does not absolve them from their responsibilities or from applying the required levels of skill, care and diligence. Directors do not satisfy these required levels if they pay attention to the issuer's affairs only at formal meetings. At a minimum, they must take an active interest in the issuer's affairs and obtain a general understanding of its business. They must follow up anything untoward that comes to their attention.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Where a proposed independent non-executive director fails to meet any of the independence guidelines set out in the Listing Rules, the listed issuer must demonstrate to the satisfaction of the Exchange, prior to the proposed appointment, that the person is independent. The listed issuer must also disclose the reasons why such person is considered to be independent in the announcement of his appointment as well as in the next annual report published after his appointment. In cases of doubt, the listed issuer must consult the Exchange at an early stage.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Every director of a listed issuer must satisfy the Exchange that he has the character, experience and integrity and is able to demonstrate a standard of competence commensurate with his position as a director of a listed issuer. The Exchange may request further information regarding the background, experience, other business interests or character of any director or proposed director of a listed issuer.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><em>Board diversity<\/em><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>On 7 September 2012 The Exchange published a consultation paper to seek comments on its proposed amendments to the Corporate Governance Code and Corporate Governance Report (Code) in relation to board diversity.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The Exchange has since made available the <a target=\"_blank\" href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/consult_paper.pdf\" rel=\"noreferrer noopener\">consultation paper<\/a> and <a target=\"_blank\" href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/consult_conclusion.pdf\" rel=\"noreferrer noopener\">consultation conclusions<\/a> along with a set of associated <a target=\"_blank\" href=\"https:\/\/charltonsnaturalresources.com\/images\/stories\/Documents\/FAQ_19.pdf\" rel=\"noreferrer noopener\">Frequently Asked Questions<\/a>.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The amendments to the Code will be effective on 1 September 2013<\/p>\r\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[29],"class_list":["post-161","page","type-page","status-publish","hentry","category-listings","cat-29-id"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=161"}],"version-history":[{"count":10,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/161\/revisions"}],"predecessor-version":[{"id":230973,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/161\/revisions\/230973"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/155"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}