Corporate Governance

Proton Power Systems is committed to high standards of corporate governance for which the directors are accountable to stakeholders and particularly shareholders. The Company has adopted a common approach to corporate governance. The Company applies the principles contained in Part 1 of the Combined Code appended to the Listing Rules published by the UK Listing Authority. The Company continues to monitor developments in the area of corporate governance.

The Board
The roles and responsibilities of the Board and senior management are clearly defined and regularly reviewed. The Board includes an appropriate balance of executive and non-executive directors and meets formally at least ten times a year. It is supplied with information by senior management on a timely and accurate basis thus enabling it to discharge its duties of reviewing and approving the Company's strategy, budgets, major items of capital expenditure and acquisitions.

Accountability and Audit
The Board will ensure that the directors present a balanced and understandable assessment of the Company's position and prospects. Proton Power Systems also maintains a sound system of internal controls to safeguard shareholders' investment and the Company's assets.

Shareholder and Stakeholder Communications
Proton Power Systems provides shareholders and stakeholders with relevant information in a timely and balanced manner. The Company understands and respects the rights of shareholders, will convene annual general meetings in full consideration of these rights, and encourage full participation of both institutional and private investors.

Corporate and Social Responsibility
Proton Power Systems takes all operational decisions in a responsible, ethical and environmental friendly manner and manages the business for long term sustainable success.