Sign up for regular news, views and insights about corporate governance

Name
Email
Company
Job title
Industry

Close

Setting the benchmark in corporate integrity

Churchill Mining grants 5.4 million share options

Following what many have perceived to be detrimental legal altercations through the past year, the London-listed mining company has since granted new share options to many of its employees

Churchill Mining has extended 5.4 million share options to its directors, executive management and consultants. The corporation, whose primary activity is in coal mining, has stated for the new options to be exercisable at the price of 28p per share, expiring five years from date of issue.

The new options, which vest after 12 months of service as of  March 21 2013, are hoped to settle any qualms of the company’s present state in relation to recent legal issues. Chairman David Quinlivan has been granted one million options whereas fellow directors John Nagulendran, Gregory Radke and Nicholas Smith were each granted 800,000.

The options entail the tax deferral properties of qualified stock options. If held for a year from the date of exercise and two from them being granted, then any profit gained at sale is taxed as long-term capital gain – beneficial in that it is taxed at a lower rate than that of standard income. Though harbouring a greater tax treatment to that of non-statutory options, the options simultaneously demand for the holder to take on more risk in their holding of stock for a longer required period.

The company has risen to fruition since its listing on the Alternative Investment Market of the LSE in April of 2005. The company grew exponentially after its discovery of a world-class thermal coal deposit in the East Kutai Regency of Kalimantan; this being preceded by an exhaustive and targeted exploration program. However, Churchill Mining has more recently been plagued by legal disputes in the wake of the Indonesian government granting a rival firm the rights to the mining of a previously assumed operation. Having sought $2bn in compensation last year, the Supreme Court of Indonesia have since rejected the company’s appeal, ReforMiner Institute vice director Komajdi Notonegoro saying in relation to the case that: “Due to the poor implementation of regional autonomy, we have tens of thousands of permits being issued by regional administrations, but only a few of them are registered within the central government’s database,” as such resulting in a great deal of both confusion and corruption.

 

News

FRC report reveals highs and lows of UK governance

A recent report by the FRC reveals the extent by which recent reforms have changed corporate governance in the UK, as well as the effect non-compliance has had on the organisation’s finances

Tech Data delays annual report after regulator questions

US-based technology wholesaler made to delay the publication of its annual report after questions are raised about accounting practices of its UK subsidiary

Mandatory auditor rotation unnecessary, says Canadian business institute

Calls to make rotation of auditing firm’s compulsory are rejected by Canada’s Institute of Corporate Directors

Italian banks to “change corporate governance”

Banks with more out-dated corporate governance structures were hit hardest by crisis, according to Fitch statement

First IATI annual report published

Initiative outlines both its achievements and intentions for bettering governmental transparency in relation to aid spending in developing nations

A new model for financial reportage

A widely accepted problem of financial disclosure and reportage is that no two institutions use the same methods

Motorola announces support for 30 Asia-Pacific education initiatives

The Motorola Solutions Foundation Grants will affect 79,000 individuals

Notable reports

Some of the leading reportage in corporate governance

Reducing annual report clutter

The presence of clutter in an annual report actively detracts from its usefulness to both shareholder and investor alike

UAE discusses role of CSR in sustainable development

Philanthropy and sustainability debated at forum arranged by UAE’s University Leadership Council

New corporate governance guidance published

The QCA has published a new guidance code for SMEs, focusing primarily on delivering long-term shareholder value

Carl Icahn gives Apple a boost

Apple’s market value rose by an estimated $17bn after billionaire investor Carl Icahn tweeted his support for the company. Shares have since hit a seven-month high

Boards under threat as shareholders demand more power

Activist shareholders demand right to action by written consent, but risk undermining board authority

Health audit ceases force’s IT system

Surrey Police forced to abandon failed multi-million pound computer system

RBS shareholders file suit against bank and former directors

RBS shareholders have launched a class-action suit over the 2008 rights offering a few months before the bank was bailed out by British government