Primary Objectives and Company Code of Conduct

1.  Our Primary Objective

Cedar Woods’ primary objective is to create value for shareholders through growth in earnings.

In meeting our primary objective we seek to:

•    Communicate the company’s progress to shareholders and the investment community
•    Satisfy customers’ expectations through excellence in property development
•    Align the interests of the company and its employees and provide employees with the opportunity of growth and development
•    Have our citizenship recognised by the communities in which we operate and be recognised as environmentally responsible
•    Maintain the highest ethical standards

The Code of Conduct embodies the above objectives and sets out the standards of conduct expected of all employees including Directors.

The overriding principles contained in the policies are that all employees, including Directors, shall:

•    Conduct their duties fairly and honestly
•    Treat other stakeholders fairly and without discrimination
•    Conduct business on an arms length basis free of any influences which are inconsistent with the company’s objectives
•    Conduct themselves in accordance with the law, The Listing Rules of the Australian Stock Exchange, the Company Constitution, local by-laws and other relevant rules or obligations imposed by organisations which govern the markets or jurisdictions in which the company operates
•    Maintain a safe working environment

Set out below is a list of some key topics addressed in the Code of Conduct and a summary of their main provisions:

2.  Conditions of Recruitment and Employment

These policies set out the Company’s recruitment policies and the conditions of employment common to all staff.

Selection policies are designed to ensure that no discrimination will be made on the basis of ethnicity, religion, gender or age.

The policies also set out requirements with respect to the way staff conduct themselves, their rights to benefits or to claim reimbursement for certain expenses, the requirement to keep company information secure and confidential, etc.

3.  Health and Safety Policy

To ensure a safe working environment and minimise any risk to third parties from activities undertaken at sites owned by the Company.

4.  Financial Policies

These policies govern the requirements for ensuring that the company’s accounting and record keeping is conducted with integrity, that there is a process for delivering the annual budget, that the Company’s results and financial position are monitored with respect to appropriate benchmarks, and statements on dividend policy, and policies governing the borrowing of funds.

The accounting policies of the group may be found in the latest Annual Report.

5.  Administrative Policies

These include policy on:

•    The authorisation procedure for expenditures
•    The use of the Company Seal
•    The authorised signatories of the Company
•    Donations and gifts
•    Important internal processes

These policies are in place to ensure that the functions are carried out by persons duly authorised to act, in accordance with laid down procedures.