CORPORATE GOVERNANCE STATEMENT

The Board of Trafalgar New Homes plc appreciate the value of good corporate governance and the requirements of the UK Corporate Governance Code (“the Code”). Companies on the Plus-Stock Exchange are not required to comply with the Code and, due to its size, the Company is not in full compliance. However, the Company intends to comply as far as is practicable and appropriate.

Board Structure

The Board consists of four directors of which two are executive and two non-executive.

The Board will meet as and when required and is satisfied that it is provided with information in an appropriate form and quality to enable it to discharge its duties. All directors are required to retire by rotation with one third of the board seeking re-election each year.

Due to the current size of the Group, the duties that would normally be attributed to an Audit, Remuneration or Nomination Committee, have been undertaken by the board as a whole.

The board has undertaken a formal assessment of the auditor’s independence and will continue to do so at least annual. This assessment includes:

• a review of non-audit services provided to the company the related fees;
• a review of the auditor’s own procedures for ensuring the independence of the audit firm and parties and staff involved in the audit, including regular rotation of the audit partner; and
• Obtaining confirmation from the auditor that, in their professional judgement, they are independent.

Internal controls

The Board is responsible for the Group’s system of internal controls and for reviewing their effectiveness. The internal controls are designed to ensure the reliability of financial information for both internal and external purposes. The Directors are satisfied that the current controls are effective with regard to the size of the Group. Any internal control system can only provide reasonable, but not absolute assurance against material mis-statement or loss. Given the size of the Group, there is currently no need for an internal audit function.