Page 91 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 89
NOTE 17. RELATED PARTY TRANSACTIONS
The Company is the parent and ultimate controlling party of the Group. Balances and transactions between the Company
and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed
in this note. Details of transactions between the Group and other related parties are disclosed below.
Sundance has adopted a policy to specify the circumstances in which it is deemed appropriate for Management to contract
the services of a Director-Related Entity. This Policy provides that Sundance is only to enter into a transaction with a
Director-Related entity in the following circumstances:
a. Where any proposed transaction is at arm’s length and on normal commercial terms; and
b. Where it is believed that the Director-Related entity is the best equipped to undertake the work after taking
into account:
- Experience;
- Expertise;
- Knowledge of the group; and
- Value for money.
Legal Services
Gilbert + Tobin received $2,648,130 (2013:$ 2,078,530) from the Group for legal services rendered during the current
financial period. Michael Blakiston is a Director of the Company and during the period was partner of Gilbert + Tobin. All
services provided were carried out on an arms-length basis, under commercial terms.
In July 2011, the partners of Blakiston & Crabb joined Gilbert + Tobin. Prior to Mr Blakiston’s appointment to the Board
of Sundance, Blakiston & Crabb had been long standing legal advisors to Sundance; having accumulated extensive
knowledge of the Company and understanding of the activities in the Republic of Cameroon and Republic of Congo. Upon
Mr Blakiston’s appointment it was determined that having regard to this experience, expertise and knowledge Blakiston &
Crabb should continue to advise Sundance in relation to these matters, although it was agreed that other legal advisors
should also be engaged as appropriate.
Advisory Services
PCF Capital received $49,304 (2013: Nil) from the Group for advisory services during the current financial period. In April
2013 the Group engaged PCF Capital for advisory services relating to project funding or a corporate transaction with
specific parties. George Jones is a Director of Company and also of PCF Capital. All services provided were carried out on
an arms-length basis, under commercial terms.
PCF Capital was engaged as they had an existing relationship with the specified parties and the experience which the
Board considered necessary to advance any potential negotiations in an expeditious manner.
PCF Capital’s mandate with the Company ended on 24 April 2014. The Company has a continuing obligation in relation to
this engagement whereby fees are payable 12 months from this date, until 24 April 2015, should a successful transaction
complete with a party specified in the engagement with PCF Capital.
Equity Holdings
At 30 June 2014, Directors and their related entities held directly, indirectly or beneficially in the Company 27,312,500
ordinary shares (2013: 21,362,500), no options over ordinary shares (2013:13,000,000) and no performance rights over
ordinary shares (2013: 2,650,000).
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014