Falkland Oil and Gas Ltd - Sub-committees

The Company's Remuneration Committee comprises David Hudd and Richard Liddell, and is chaired by David Hudd.

make recommendations to the Board on an overall remuneration policy for executive Directors and other senior executives in order to retain, attract and motivate high quality executives capable of achieving the company's objectives; and
demonstrate to shareholders that the remuneration of the executive Directors of the Company is set by a committee whose members have no personal interest in the outcome of their decision, and who will have due regard to the interests of the shareholders.

The Board has shown a commitment to formalising procedures for developing a remuneration policy, fixing executive remuneration and ensuring that no Director involved in deciding his or her own remuneration. The Committee is authorised to obtain outside professional advice and expertise.

The Remuneration Committee is authorised by the Board to investigate any matter within its terms of the reference. It is authorised to seek any information that it requires from any employee.

The basic fees to be paid to the Directors are recommended by the Remuneration Committee, and are subject to approval by the full Board.

The Company operates a share option scheme pursuant to which Directors and senior executives may be granted options to acquire ordinary shares in the Company at a fixed option price.

All service agreements for Directors are terminable by either party on between six and twelve months notice.

The Company's Audit Committee comprises David Hudd and Richard Liddell, and is chaired by David Hudd. It is responsible for ensuring that the financial performance of the Company is properly reported on and monitored, and for reviewing the auditors' reports relating to accounts and internal control systems.

The Company's Nomination Committee comprises David Hudd and Richard Liddell, and is chaired by Richard Liddell. It is responsible for the selection and appointment of Board Members.