The Board of Directors of ChemGenex Pharmaceuticals Limited (ChemGenex) is responsible for the corporate governance of the consolidated entity. The Board guides and monitors the business and affairs of on behalf of the shareholders by whom they are elected and to whom they are accountable. The format of the Corporate Governance Statement has changed in comparison to the previous year due to the introduction of the Australian Stock Exchange Corporate Governance Council’s (the Council’s) “Principles of Good Corporate Governance and Best Practice Recommendations” (the Recommendations). In accordance with the Council’s recommendations, the Corporate Governance Statement must now contain certain specific information and must disclose the extent to which the company has followed the guidelines during the period. Where a recommendation has not been followed, that fact must be disclosed, together with the reasons for the departure. ChemGenex’s Corporate Governance Statement is now structured with reference to the Council’s principles and recommendations, which are as follows:

• Principle 1. Lay solid foundations for management and oversight.
• Principle 2. Structure the board to add value.
• Principle 3. Promote ethical and responsible decision making.
• Principle 4. Safeguard integrity in financial reporting.
• Principle 5. Make timely and balanced disclosure.
• Principle 6. Respect the rights of shareholders.
• Principle 7. Recognise and manage risk.
• Principle 8. Encourage enhanced performance.
• Principle 9. Remunerate fairly and responsibly.
• Principle 10. Recognise the legitimate interests of stakeholders.