I’ve been reading the annual reports now for 14 years but the...

I’ve been reading the annual reports now for 14 years but the following clauses on page 19 in relation to Board composition and independent directors took my attention. Starting part way through this:
- Has no material contractual relationship with Austpac Resources N.L. or any of its associates other than as a director of Austpac Resources N.L.;
- Has no other interest or relationship that could interfere with the director’s ability to act in the best interests of Austpac Resources N.L. and independently of management; and
- Has not served on the Board for a period which could, or could reasonably be perceived to, materially interfere with the director’s ability to act in the best interests of Austpac Resources N.L.

In this context the Board considers material, any director-related business relationship that is or is likely in the future to be more than 10 per cent of the director-related business’s revenue.


Setting aside the director’s payments that Messrs Cuthbertson and Harrison receive as that is excluded from consideration by the policy, they each are receiving compensation for consulting to Austpac to the value of $35,000 each. The chairman has a number of directorships so I would imagine that his consulting fee is not more than 10% of his annual revenue. Mr Harrison doesn’t seem to be as active so I’m wondering if Austpac payments make up more than 10% of his annual business. Or am I just reading the Board Policy wrong?