Page 120 - Sundance Resources Ltd Annual Report 2013

118 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2013
Note 27. RELATED PARTY TRANSACTIONS
The Company is the parent and ultimate controlling party of the Consolidated Entity. 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 Consolidated Entity 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 $2,078,530 (2012:$1,193,634) from the Consolidated Entity 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
In April 2013 the Consolidated Entity 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. No payments were
made to PCF Capital during the financial period.
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.
Equity Holdings
At 30 June 2013, directors and their related entities held directly, indirectly or beneficially in the Company
21,362,500 ordinary shares (2012:18,712,500), 13,000,000 options over ordinary shares (2012:13,000,000)
and 2,650,000 performance rights over ordinary shares (2012:5,300,000).