ROLE OF THE BOARDTheBoardofDirectorssetsthestrategicdirectionofthe

Company and is committed to managing the Company in an

ethicalandprofessionalmanner,andinthebestinterests

oftheCompanyanditsshareholders.

KeyresponsibilitiesoftheBoardinclude:

• developingthestrategicdirectionofMethvenwiththe

senior management team

• monitoringtheperformanceofmanagementandthe

overallfinancialperformanceoftheCompanyandthe

Methven Group

• monitoringMethven’sregulatoryandlegislative

compliance and risk management processes

• ensuringeffectivepoliciesandproceduresconcerning

disclosuretothemarketandshareholders.

FRAMEWORKTheBoardandmanagementarecommittedtocontinued

developmentoftheCompany’sgovernancepractices.

TheBoardcontinuestoreviewanddevelopitspoliciesand

monitordevelopmentstokeepabreastofbestpractice

corporategovernancefortheMethvenGroupofcompanies,

includingitssubsidiaries.

The Company’s corporate governance framework includes

theCompany’sconstitution,BoardCharter,termsof

referencefortheBoard’sAudit,ComplianceandRisk

ManagementCommitteeandRemunerationCommittee,

alongwithpoliciesonethics,delegatedauthorities,

disclosureandcommunications,insidertrading,risk

management,conflictofinterest,environment,health

andsafety,andpoliciesandproceduresforemployees.

TheBoardsupportsdirectorsobtainingindependent,

professionaladvicewhenrequired.

TheBoardbelievesthatitscorporategovernancepolicies

andproceduresmeettheNewZealandStockExchange

CorporateGovernanceBestPracticeCodeandsupportsthe

PrinciplesofCorporateGovernanceaspreviouslypublished

bytheNewZealandSecuritiesCommission.

cORPORaTE gOVErNANcE

24

25

BOARD COMPOSITIONTheBoardcomprisedfiveDirectorssincetheretirementof

GaryNelatthe2011AnnualMeeting,andfourDirectorssince

DavidMair’sresignationfromtheBoardon31December2011.

ThevacancyleftbyDavidwasfilledbyAlisonTaylorin

June2012.AlisonTaylorwillstandforelectionatthe2012

AnnualMeeting.

TheBoardcomprisesfournon-ExecutiveDirectorsandone

ExecutiveDirector.TheDirectorsconsideredindependent

byMethvenarePhilLough(Chairman),PeterStanes,

RichardCutfieldandAlisonTaylor.TheremainingDirector,

RickFala,isdeemednottobeindependent.TheBoardis

comfortablethatthefivedirectorshavetheappropriate

skillandexperiencetotakeMethvenforward.

The policy for appointment and retirement of directors is

containedwithintheCompany’sConstitution.Pursuantto

theConstitutionoftheCompany,one-thirdofthedirectors

retirebyrotationateachAnnualMeeting.PeterStanesand

PhilLoughretirebyrotationatthe2012AnnualMeetingand,

beingeligible,offerthemselvesforre-election.

AsummaryoftheskillsandexperienceofeachDirector

isprovidedonpages26and27.

AUDIT, COMPLIANCE AND RISK MANAGEMENT COMMITTEETheAudit,ComplianceandRiskManagementCommittee

comprisesPeterStanes(Chairman),PhilLough,Richard

CutfieldandAlisonTaylor.ThiscommitteeassiststheBoard

tofulfilitsresponsibilitiesintheareasoffinancialand

riskmanagement.

REMUNERATION COMMITTEETheRemunerationCommitteecomprisesRichardCutfield

(Chairman),PhilLough,PeterStanesandAlisonTaylor.

ThiscommitteeprovidesassistancetotheBoardtoensure

that the Company has remuneration and human resource

policiesthatattract,retainandmotivatehighcalibreand

highperformingexecutivesanddirectors.

NOMINATION COMMITTEETheBoardbelievesthatallBoardmembersshouldbe

involved in the selection and appointment process of

newBoardmembers,and,assuggestedintheCorporate

GovernanceBestPracticeCodeinAppendix16oftheNZSX

ListingRules,anominationcommitteeisthereforenot

necessaryforMethven.

BOARD AND COMMITTEE MEETINGS HELD DURING THE YEAR:

BoardMeetings

Audit,Compliance

and Risk Management Committee

Remuneration Committee

PhilLough 12 8 4Rick Fala 12 - -Gary Nel 3 - -RichardCutfield 12 8 4Peter Stanes 11 8 4David Mair 8 4 3

Total meetings held 12 8 4

SHARE TRADING BY DIRECTORS AND OFFICERSThe Company has formal procedures that directors and

officersmustfollowwhentradingMethvenshares.They

mustnotifyandobtaintheconsentoftheBoardpriorto

anytrading.Alltradingmustbeconductedwithintwo

prescribedtradingwindows.Theseperiodscommencefrom

the date on which the annual result and half yearly results

areannouncedandconcludeonthefollowing31August

and31Januaryrespectively.

CONTINUOUS DISCLOSURE POLICYTheBoardhasadoptedapolicytoensurethatitmeetsits

obligationsundertheNZXcontinuousdisclosurerules.

26

PHIL LOUGHChairman

PhiljoinedtheBoardinSeptember2004.Hebringstothetableawiderangeofskillsandexperienceasaninternationalexporterandmarketerofprimaryandvalueaddproducts.Heis aformerCEOofSealordGroupandDeputyChiefExecutive oftheDairyBoardandhashadahands-onroleinguidingtheinternationaldevelopmentoftheseglobalbusinesses.PhilisChairmanandDirectorofQuotableValueLimited,andisaDirectorofFisher&PaykelAppliancesLimited,PortNelsonLimited,andLivestockImprovementCorporationLimited. HeisapastChairmanofNewZealandTradeandEnterprise.He was awarded the Companion of the Order of New Zealand forservicestobusinessintheQueen’sBirthdayHonours’listinJune2008.

RICHARD CUTFIELDIndependent Director

RichardhasbeenaMethvenGroupDirectorsinceMarch2001whenheledthemanagementbuy-outofMethvenfromAustralianinterests,andwasChairmanuntilJuly2008.Richard is Chief Operating and Financial Officer and a Director ofinternationalnurseryhardwarebrand;phil&teds,whichhejoinedearlyin2009following15yearsasanExecutiveDirectorofPencarrowPrivateEquityLtd,aleadingNewZealand-basedprivateequityinvestor.RichardisalsoaDirectorofFormwayDesignStudioLimited,adesignerandinternationallicenserofaward winning high performance office seating and furniture products.RichardholdsaBachelorofBusinessStudies(AccountingandFinanceMajor)andhasbeenaMemberoftheNZInstituteofCharteredAccountants(CA)since1986.

RICK FALAManaging Director and Group CEO

RickhasbeenChiefExecutivesince1998andManagingDirectorsince2001whenheledkeymanagementteammembersinthemanagementbuy-outoftheMethvenbusiness.HeplaysakeyroleindeliveringsustainableearningsanddevisingtheinternationalexportstrategytodrivenewgrowthfortheGroup.PriortojoiningMethvenasChiefFinancialOfficerin1996,heheldarangeoffinancialmanagementroleswithMcKechnieplc’sNewZealandgroupcompaniesandErnstandYoung.HeisaDirectorofBetterbyDesign,New Zealand Trade and Enterprise’s initiative to create internationallycompetitivedesign-ledbusinesses.Heis alsoanAdvisoryBoardMemberofUniversityofAucklandBusinessSchoolandaTrusteeofYouthlineAuckland.

mETHvEN GrOUP dIREcTORS

27

ALISON TAYLOR Independent Director

AlisonjoinedtheBoardinJune2012.SheisChiefOperatingOfficerofGriffin’sFoodsLimited,oneofNewZealand’slargestbrandedfoodcompanies,whichshejoinedin2009.Withover20yearsexperienceatmajorinternationalFMCGcompaniesincludingPepsiCo,KimberleyClark,Wattie’sandGoodmanFielder,AlisonbringsabroadrangeofskillstotheMethvenBoard,includinganextensivemarketingcareerandtheexecutionofanumberofsignificantbusinesstransformationprojectsinprivatelyownedandpublicly-listedorganisations.AlisonwasChairpersonofthe BreastCancerResearchTrustforthreeyearsandiscurrentlyontheboardoftheNewZealandFoodandGroceryCouncil.

PETER STANESIndependent Director

ADirectorsinceSeptember2004,Peterhasmanyyearsofexperiencerunninginternationalmanufacturingandmarketingcompanies,bothasaseniorexecutiveandadirector.HeisChairmanandDirectorofRembrandtSuitsLimitedandHighSocietyLimitedandisapastDirectorofZESPRIGroupLimited,WellingtonDriveTechnologiesLimitedandAragornLimited.HewasManagingDirectorofTrigonIndustriesLimited,overseeingseveralyearsofrapidinternationalexpansion.PeterwasalsoManagingDirectorofFeltexNZLimited,ExecutiveChairmanoftherenamedFeltraxInternationalLimitedand,throughhisFeltex/Feltraxinvolvement,wasforatimeadirectoroftheirmajorshareholder,EquiticorpHoldingsLimited.Healsoheld seniorrolesatAlexHarveyIndustriesLimited.