The Company appointed the current external auditors, PricewaterhouseCoopers, during the financial year ended 30 June 2009. The Company has prepared a Selection and Appointment of External Auditor Policy, whereby the Company reviews every three  years and assesses performance and potentially rotates the external auditor. The External Auditor Selection Policy is available on  the Company’s website at www.karoongas.com.au The Directors, officers, employees and consultants are required to act with the utmost integrity and objectivity, striving at all  times to enhance the reputation and performance of the Group. The Company also strives to comply with legal and other  obligations to stakeholders. Recommendation 3.1 of the revised Corporate Governance Council Principles provides that the Company should establish a code  of conduct. The Company has developed a Code of Conduct for the Board of Directors, senior management and employees of  the Company. The Company’s Code of Conduct can be found on the Company’s website at www.karoongas.com.au. The Code  includes: The Board recognises the importance of diversity and has adopted a Diversity Policy in accordance with Recommendation 3.2 of the  revised Corporate Governance Council Principles. The Company proposes to introduce appropriate measures to ensure the policy  is implemented properly. The Company’s Diversity Policy can be found on the Company’s website at www.karoongas.com.au. A Director, or entities in which a Director has a significant interest and/or influence, who enters into a transaction with the  Company must make full disclosure of all material elements of the transaction to the Chairman, or, if the Director involved is the  Chairman, to the Board of Directors. In addition, contracts with Directors, or entities in which Directors have a significant interest and/or influence, must be approved  by the Audit Committee in advance of committing the Company to: Any Director who is a member of the Audit Committee and who has a significant interest and/or influence in relation to a contract  to be approved by the Audit Committee must absent themselves from the meeting and not participate in any vote to approve  such contract. Directors, officers, employees and consultants are prohibited from dealing in securities of the Company if they are in possession  of information concerning the Company which, if made public, a reasonable person would expect to have a material impact on  the price or value of the Company’s securities (‘insider information’). Directors, officers, key management personnel and other designated persons are prohibited from dealing in securities of the  Company during any embargo period declared by the Chairman or Company Secretary. Embargo periods include the period of two  weeks prior to the release of the Company’s half year results and final results to the ASX and the period from the close of trading  10 days before the Company’s Annual General Meeting. These restrictions in dealing in securities of the Company are subject to discretion exercised by the Chairman in exceptional  circumstances. 89 Karoon Gas Australia Ltd  Annual Report 2011 • contracts for the supply of goods and/or services which extend beyond one year, or where the total value of goods and/or  services supplied under the contract will, in any one year, exceed $25,000; • all agreements to lease and/or leases of property; and • all agreements for acquisition or disposal of property, except by way of public auction. • the practices necessary to maintain confidence in the Company’s integrity; • the practices necessary to take into account their legal obligations and the reasonable expectations of stakeholders; and • the responsibility and accountability of individuals for reporting and investigating reports of unethical practices. Ethical Standards, Compliance with Obligations and Responsible Decision Making Diversity Fair Dealings and Related Party Transactions Policy and Procedure for Share Trading