Document:

ex10-6.htm

Exhibit 10.6

 

DOMINOVAS ENERGY CORPORATION

 

AUDIT COMMITTEE CHARTER

 

Adopted 07-03-2015

 

Role and Purpose

 

The purpose of the audit committee of the board of directors of Dominovas Energy Corporation, (the "Company") is to assist the board of directors in fulfilling the oversight responsibilities it has with respect to:

 

	
1.  

	
The integrity of the Company’s financial statements.

 

	
2.  

	
The Company’s compliance with legal and regulatory requirements.

 

	
3.  

	
The qualifications and independence of the Company’s independent auditor.

 

	
4.  

	
The performance of the Company’s independent auditor and the Company’s internal audit function.

 

The Company’s independent auditors, in their capacity as independent public accountants, shall be responsible to the board of directors and the audit committee as representatives of the shareholders. The audit committee is expected to maintain free and open communication (including private executive sessions at least annually) with the independent auditors and management of the Company. In discharging this oversight role, the committee is empowered to investigate any matter brought to its attention, with full power to retain outside counsel or other experts for this purpose.

 

Composition

 

Members of the Audit Committee shall be elected annually by the full board on the recommendation of the Nominating/Corporate Governance Committee and shall hold office until the earlier of, (1) the election of their respective successors, (2) the end of their service as a director of the Company (whether through resignation, removal, expiration of term, or death), or (3) their resignation from the committee. The chairperson of the Committee may be selected by the board of directors or, if it does not do so, the committee members may elect a chairperson by vote of a majority of the full committee.

 

The membership of the Committee shall consist of at least three directors, each of whom shall satisfy the independence, financial literacy, and experience requirements of the Securities Exchange Act of 1934, the rules and regulations of the Securities and Exchange Commission, and the listing standards of the New York Stock Exchange, as is in effect from time to time. At least one member of the Committee shall be an “Audit Committee financial expert” (as defined by the Securities and Exchange Commission).

 

 

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No Audit Committee member shall serve on the Audit Committee of more than three public companies, unless the Company’s board of directors determines it does not believe such service would impair the member’s ability to effectively service on the Audit Committee.

 

Authority and Responsibilities

 

The Committee shall have the sole authority to hire and fire the Company’s independent auditor, to approve all audit engagements, including the fees and terms, and to approve all non-audit engagements, including the nature of the services and fee terms, with the independent auditor. The Committee shall be directly responsible for the selection and appointment, retention, compensation, evaluation, termination and oversight of the work of the independent auditor, including the resolution of disagreements between management and the independent auditor regarding financial reporting, for the purpose of preparing or issuing an audit report or related work. The independent auditor shall report directly to the Committee.

 

The Committee shall review in advance, and grant any appropriate preapprovals of, (1) all auditing services to be performed by the independent auditor and, (2) all non-audit services (including the material terms thereof) to be provided by the independent auditor as permitted under the Securities Exchange Act of 1934, subject to the minimum exception for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934 and Rule 2-01(c)(7)(i)(C) of Regulation S-X.

 

The Committee may form and delegate authority to subcommittees consisting of one or more members where appropriate, including the authority to grant preapprovals of audit and permitted non-audit services, provided that decisions of such subcommittee to grant preapprovals shall be presented to the Committee at its next meeting.

 

The Committee shall have the authority to obtain advice and assistance from outside legal, accounting or other advisors, as it determines necessary to carry out its duties, and shall be empowered to retain and compensate these advisors without seeking board approval. The Committee shall determine the extent of funding necessary for payment of compensation to the independent auditor for the purpose of rendering or issuing an audit report and to any outside legal, accounting or other advisors retained to advise the Committee. The Committee may request any officer or employee of the Company or the Company’s outside counsel or independent auditor to attend a meeting of the Committee or to meet with any members of, or consultants to, the Committee.

 

The Audit Committee, to the extent it deems necessary or appropriate, shall:

 

	
v  

	
Review and discuss the annual audited financial statements and quarterly financial statements with management and the independent auditor, including the Company’s disclosures under the section in any filing with the Securities and Exchange Commission entitled, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and review and discuss proposed earnings press releases (including the use of any “pro forma” or “adjusted” non-GAAP information) and financial information and earnings guidance provided to analysts and rating agencies. It is anticipated that these discussions will include, as applicable:

 

	
v  

	
Major issues regarding accounting principles and financial statement presentations, including any significant changes in the Company’s selection or application of accounting principles;

 

 

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v  

	
Major issues as to the adequacy of the Company’s internal controls, any special audit steps adopted in light of material control deficiencies and the adequacy of the disclosures about changes in internal control over financial reporting;

 

	
v  

	
Analysis prepared by management and/or the independent auditor setting forth significant financial reporting issues and judgments made in connection with the preparation of the financial statements, including analysis of the effects of alternative GAAP methods on the financial statements and any significant changes in the Company’s selection or application of accounting principles;

 

	
v  

	
The effect of regulatory and accounting initiatives, as well as off-balance sheet structures, on the financial statements of the Company;

 

	
v  

	
The type and presentation of information to be included in earnings press releases;

 

	
v  

	
Quality of earnings, discussions of significant items subject to estimate, consideration of the suitability of accounting principles, audit adjustments (whether or not recorded);

 

	
v  

	
Other material written communications between the independent auditor and management, such as any management letter or schedule of unadjusted differences; and

 

	
v  

	
Such other inquiries as may be deemed appropriate by the Audit Committee.

 

Additionally, the Committee shall:

 

	
v  

	
Recommend to the board whether the audited financial statements should be included in the Company’s Form 10-K.

 

	
v  

	
Review and discuss with management (including the senior internal audit executive) and the independent auditor the Company’s internal controls report and the independent auditor’s attestation of the report prior to the filing of the Company’s Form 10-K.

 

	
v  

	
Review with the independent auditor any audit problems or difficulties (including any restrictions on the scope of the independent auditor’s activities or on access to requested information, and any significant disagreements with management) and management’s response.

 

It is anticipated that these discussions will include, as applicable:

 

	
v  

	
Any accounting adjustments that were noted or proposed by the independent auditor but were “passed” (as immaterial or otherwise);

 

	
v  

	
Any material communications between the audit team and the independent auditor’s national office respecting auditing or accounting issues presented by the engagement; and

 

	
v  

	
Any “management” or “internal control” letter issued, or proposed to be issued, by the independent auditor to the Company.

 

 

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Additionally, the following shall be addressed:

 

	
v  

	
Discuss guidelines and policies to govern the process by which risk assessment and risk management is undertaken, including discussion of the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures.

 

	
v  

	
Review and approve disclosures required to be included in Securities and Exchange Commission periodic reports filed under the Securities Exchange Act of 1934 with respect to audit and non-audit services provided by the independent auditor.

 

	
v  

	
Review disclosures made to the Committee by the Company’s CEO and CFO during the certification process for the Form 10-K and Form 10-Q about any significant deficiencies in the design or operation of internal controls or material weaknesses, therein, and any fraud involving management or other employees who have a significant role in the Company’s internal controls.

 

The following shall be performed:

 

	
v  

	
On an annual basis, review and discuss with the independent auditor all relationships between the independent auditor and the Company, in order to evaluate the independent auditor's continued independence. The Committee shall ensure annual receipt of a formal written statement from the independent registered public accounting firm consistent with the applicable requirements of the Public Company Accounting Oversight Board regarding the independent registered public accounting firm's communications with the Audit Committee concerning independence and shall discuss with the independent registered public accounting firm all relationships or services that may affect auditor independence or objectivity.

 

	
v  

	
At least annually, obtain and review a report by the independent auditor describing, (1) the independent auditor’s internal quality-control procedures, (2) any material issues raised by the most recent internal quality-control review, or peer review, of the independent auditor, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the independent auditor, and any steps taken to deal with any such issues, and (3) all relationships between the independent auditor and the Company.

 

	
v  

	
Review all reports required to be submitted by the independent auditor to the committee under the Securities Exchange Act of 1934.

 

	
v  

	
Evaluate the independent auditor’s qualifications, performance and independence, including the review and evaluation of the lead partner of the independent auditor, and taking into account the opinions of management and the Company’s internal auditors, and present conclusions it deems appropriate with respect to the independent auditor to the full board of directors.

 

	
v  

	
Confirm that the lead audit partner, or the audit partner responsible for reviewing the audit, of the independent auditor has not performed audit services for the Company for each of the five previous fiscal years, and consider whether, in order to assure continuing auditor independence, there should be rotation of the independent auditing firm on a regular basis.

 

	
v  

	
Set hiring policies for employees or former employees of the independent auditor.

 

 

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v  

	
Meet with the independent auditor prior to the audit to discuss the planning and staffing of the audit.

 

	
v  

	
Meet separately in person or telephonically, periodically, with management, with internal auditors and with the independent auditor, and have such other direct and independent interaction with such persons from time to time, as the members of the committee deem appropriate.

 

	
v  

	
Discuss the responsibilities, budget, and staffing of the Company’s internal audit function.

 

	
v  

	
Obtain from the independent auditor assurance that Section 10A(b) of the Securities Exchange Act of 1934 has not been implicated.

 

	
v  

	
Establish procedures for, (1) the receipt, retention, and treatment of complaints from employees of the Company on accounting, internal accounting controls, or auditing matters and, (2) the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.

 

	
v  

	
Prepare the report required by the proxy rules of the Securities and Exchange Commission to be included in the Company’s annual proxy statement (or Form 10-K) and any other committee reports required by applicable securities laws or stock exchange listing requirements or rules.

 

	
v  

	
Oversee administration of the Company’s policy with respect to related party transactions, review related party transactions submitted to the Committee pursuant to the terms of such policy, and periodically review and assess the adequacy of such policy and, as appropriate, amend such policy.

 

	
v  

	
Report regularly to the board of directors, by means of written or oral reports, submission of minutes of Committee meetings or otherwise, from time to time or whenever it shall be called upon to do so, including a review of any issues that arise with respect to the quality or integrity of the Company’s financial statements, the Company’s compliance with legal or regulatory requirements, the performance and independence of the Company’s independent auditor, or the performance of the Company’s internal audit function.

 

	
v  

	
Review this charter annually for possible revision.

 

Interpretations and Determinations

 

The Committee and the board of directors shall have the power and authority to interpret this Charter and make any determinations as to whether any act taken has been taken in compliance with the terms, hereof.

 

Evaluation

 

The Committee shall conduct an annual performance evaluation of the Committee.

 

Disclosure

 

This charter shall be made available on the Company’s website.

 

 

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Limitation of Audit Committee’s Role

 

It is not the duty of the Audit Committee to prepare financial statements, to plan or conduct audits or to determine that the Company’s financial statements and disclosure are complete and accurate and are in accordance with GAAP and applicable rules and regulations.

 

Management is responsible for the preparation, presentation, and integrity of the Company's financial statements, for the appropriateness of the accounting principles and reporting policies that are used by the Company and for establishing and maintaining internal control over financial reporting.

 

The independent auditor is responsible for auditing the Company's financial statements and the effectiveness of internal control over financial reporting, and for reviewing the Company's unaudited interim financial statements.

 

 

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Approved by the Board of Directors July 2015ex10-7.htm

Exhibit 10.7

 

DOMINOVAS ENERGY CORPORATION

 

Regulation Fair Disclosure Policy, (“FD”)

 

Adopted 07-03-2015

 

Dominovas Energy Corporation, (the “Company”) is committed to providing timely and credible information regarding the Company and its securities in compliance with all applicable legal and regulatory requirements. In this regard, the Company is fully committed to complying with Regulation Fair Disclosure (also known as “Regulation FD”) enacted by the U.S. Securities and Exchange Commission.

 

1.) General

 

It is the Company’s Regulation FD policy (the “Policy”), reflecting current legal requirements, that neither employees nor directors of the Company make any disclosure of material, non-public information about the Company to anyone outside the Company (other than to persons who first are obliged to maintain confidentiality with respect to such information), unless the Company discloses it to the public at the same time in a manner consistent with Regulation FD.

 

Examples of areas affected by this Policy include:

 

	
v  

	
Quarterly earnings releases and related conference calls;

 

	
v  

	
Speeches, interviews and conferences;

 

	
v  

	
Providing “guidance” as to the Company’s performance or results;

 

	
v  

	
Responding to market rumors;

 

	
v  

	
Contact with financial analysts covering the Company;

 

	
v  

	
Reviewing analyst reports and similar materials;

 

	
v  

	
Referring to or distributing analyst reports on the Company;

 

	
v  

	
Analyst and investor visits;

 

	
v  

	
Postings on the Company’s websites;

 

	
v  

	
Personal information of Executive Officers of DEC, which includes salaries, bonuses and commissions; and

 

	
v  

	
Details of all contracts/ deals and/or preparatory technology information

 

2.) Purpose

 

The purpose of this Policy is to ensure the Company adheres to Regulation FD and other applicable legal and regulatory requirements in its external communications. The Company’s Vice President of Communications & Investor Relations and General Counsel, or such other person reporting to the General Counsel as the General Counsel may from time to time designate, shall have the authority to make materiality and distribution determinations covered by this Policy with respect to the information disclosed about the Company.

 

 

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The General Counsel or his designee has the authority to interpret and enforce this Policy. All questions about this Policy should be directed to the General Counsel. Any suspected or known violations of this Policy should be reported immediately to the General Counsel and the Vice President of Communications & Investor Relations. If a Company employee violates this Policy, he or she will be subject to disciplinary action up to and including immediate termination of employment.

 

The Vice President of Communications & Investor Relations and the General Counsel or his designee must preapprove any deviation from the policies and procedures outlined in this Policy.

 

Compliance with this Policy shall be carefully overseen and documented by the Vice President of Communications & Investor Relations at the time of disclosure, including documentation of materiality and distribution determinations, with appropriate back-up documentation showing adherence to the established procedure or the basis for any deviation.

 

The Vice President of Communications & Investor Relations shall document, in advance, the analysis of why information to be selectively disclosed is not material. The Vice President of Communications & Investor Relations shall establish a system to document and track what material information has and has not been made public and when such information was disclosed to the public.

 

3.) Authorized Spokespersons

 

The individuals holding the following offices and their respective successors are authorized to speak on behalf of the Company in all situations and/or field questions from analysts, stockholders, and/or the media (the “Authorized Spokespersons”):

 

President and Chief Executive Officer;

 

Chief Financial Officer; or

 

As authorized by the President and Chief Executive Officer, the Vice President of Communications & Investor Relations, and/or the Treasurer & General Counsel.

 

At various times, any one of the Company’s Authorized Spokespersons may designate others in writing to speak on behalf of the Company and/or respond to specific inquiries when necessary due to the unavailability of an Authorized Spokesperson, or due to the specific nature of the request. While others may be designated in writing from time to time to speak on behalf of the Company, it is essential that both the Vice President of Communications & Investor Relations and the General Counsel have knowledge of the information being disseminated by those individuals to facilitate the Company’s compliance with other applicable legal and regulatory requirements in its external communications.

 

Company employees who are not authorized to speak on behalf of the Company are prohibited from communicating potentially material non-public information about the Company and should refer all inquiries from the media, analysts, stockholders, and/or the financial community to the Company’s Vice President of Communications & Investor Relations.

 

 

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4.) Policy on Public Communications and Press Releases

 

	
v  

	
For all public communications initiated by the Company, the Vice President of Communications & Investor Relations will draft all related press releases and circulate the press release to the Authorized Spokespersons and other significant involved parties or Dominovas Energy Corporation personnel prior to its release. The General Counsel will review the press release in its proposed final form.

 

	
v  

	
For all public communications not initiated by the Company, the Vice President of Communications & Investor Relations will review all requests by customers, suppliers, vendors and others to disseminate comments about Dominovas Energy Corporation. Only the Vice President of Communications & Investor Relations or their written designee can authorize and approve press releases.

 

	
v  

	
To the extent practicable, an Authorized Spokesperson familiar with the Company's disclosure record will accompany senior management in any meetings or discussions with analysts and stockholders to monitor for unintentional disclosure of material non-public information.

 

	
v  

	
The Vice President of Communications & Investor Relations will disseminate the press release in accordance with all applicable Securities and Exchange Commission rules. The Vice President of Communications & Investor Relations shall document all material contact with members of the media, the extent of the coverage provided by the media on Company releases, and evidence of the timing of the disclosure with respect to each release.

 

5.) Policy on Forward-Looking Statements

 

If a press release or any presentation materials are to be made available to analysts or stockholders and contain forward-looking statements, including explicit forecasts or expressions of “comfort” with respect to an analyst’s estimates, such release or materials will be provided to the General Counsel or his designee in advance for review and include appropriate communication of the underlying assumptions and cautionary statements relating to material uncertainties concerning the information communicated in the release or materials.

 

6.) Policy on Scheduled Quarterly Earnings Conference Calls

 

	
v  

	
The Company shall make a practice of holding open, publicly-accessible conference calls to discuss quarterly financial results and certain other significant events that arise in the course of its business. Normally, the Company will issue a press release in advance of the call announcing the date, time, and access information for the call. Generally, analysts and professional investors will have teleconference access to the call so they may participate in the Q & A portion of the call. Generally, other interested parties will also be able to listen to the call via the Internet through the Company’s website.

 

	
v  

	
The Company will attempt to respond to as many questions as possible during the time allotted; however, it reserves the right to not respond to any question where it chooses to do so. Generally, the Company will promptly post an audio transcript of the call on the Company’s website, as appropriate.

 

 

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All transcripts and archived materials on the Company’s website are considered time-dated and the Company undertakes no obligation to update such information, which shall not later be considered a current representation of the Company’s views or forecasts. The following procedures shall apply:

 

a) The time, date, and means of access to the call will be announced in advance by way of a separate press release and will be listed on the Company’s website, so all interested parties have the option of listening to the call.

 

b) A related Form 8-K and press release, in a form and substance consistent with applicable Securities and Exchange Commission and New York Stock Exchange rules, will be prepared by the Vice President of Communications & Investor Relations and reviewed by the General Counsel. All reasonable efforts shall be made for the press release to be released by the Company at least 2-3 hours prior to the call (but not more than 48 hours before the call) in accordance with the Policy on Public Communications above. Upon issuing the press release and prior to the start of the call, the Form 8-K containing the press release will be filed by the Company with the Securities and Exchange Commission.

 

c) The Vice President of Communications & Investor Relations will endeavor to pre-script the call, to the extent possible, with assistance from the General Counsel or his designee (a mutual sensitizing between management and General Counsel or his designee as to the “materiality” of the information to be discussed should occur; thinking through the likely Q&A, so as to avoid non-intentional disclosures of material, non-public information).

 

d) The Company will hold the call within 48 hours after the related press release is issued. The media/public will have the option of gaining access to monitor the conference call through the webcast on the Company’s website (real time and replay mode). A replay of the webcast will be available on the Company’s website for at least twelve months after the conference call.

 

e) If, (i) the conference call is more than 48 hours after the issuance of the earnings release, (ii) the Form 8-K is not submitted to the SEC prior to the oral presentation, (iii) the financial and statistical information contained in the presentation is not provided on the Company’s website, or (iv) the call is not complementary to the earnings release, then, to the extent required by applicable Securities and Exchange Commission rules, the Company will furnish a second Form 8-K containing the text of any announcement or release disclosing material non-public information regarding the Company’s results of operations or financial condition for a completed quarterly or annual fiscal period that is included in the oral presentation.

 

f) Any written materials distributed to analysts will be posted on the Company’s website.

 

g) “Question and Answer” session following analyst conference call:

 

 

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(1) During the question and answer session, management will make all reasonable efforts to avoid introducing additional material information not covered in the presentation.

 

(2) The General Counsel or his designee will be in attendance at all conference calls to assist in efforts to comply with applicable federal securities laws regarding disclosure.

 

(3) If an Authorized Representative engages in post-call discussions with analysts and inadvertently discloses material non-public information in such discussion or has any reasonable belief that such an inadvertent disclosure may have been made, such Authorized Representative will immediately contact the General Counsel or his designee or the Vice President of Communications & Investor Relations to determine whether any material information beyond what was covered in the presentation (including the formal Q&A session) was communicated.

 

(4) The Vice President of Communications & Investor Relations will prepare a record of the analysis of whether any additional information disclosed by individual member of management may be material, such record to be immediately made available to the General Counsel or his designee, who shall make the determination of whether material non-public information was disclosed and follow the procedures below for unintentional disclosures, if appropriate.

 

7.) Policy on Unintentional Disclosures

 

	
v  

	
If anyone has a reasonable belief that an unintentional disclosure of material, non-public information may have been made by the Company (or the movement of the Company’s stock price suggests to any Authorized Spokesperson that there may have been a disclosure of material, non-public information), the Vice President of Communications & Investor Relations and the General Counsel or his designee should be notified immediately.

 

	
v  

	
The Vice President of Communications & Investor Relations will, upon consultation with the General Counsel or his designee, determine whether disclosure of the information should be made to the public; and, if so, whether the Company will disseminate the same information to the public by furnishing the information in a press release, or filing a Form 8-K with the Securities and Exchange Commission.

 

	
v  

	
If public disclosure is deemed necessary or appropriate, it will be made as soon as reasonably practicable but in no event after the later of, (i) 24 hours or, (ii) the commencement of the next day’s trading on the New York Stock Exchange after the discovery by the Vice President of Communications & Investor Relations that there has been an unintentional disclosure of information that is material and has not been previously disclosed publicly.

 

8.) Policy on Commenting on Analyst Reports

 

	
v  

	
It is the Company’s Policy that only Authorized Spokespersons may review in advance and/or comment on the accuracy of historical data contained in draft analyst reports. In connection with any review of analyst projections, the Company will not provide comments on forecasts or projections, except that comments may be made by an Authorized Representative to the extent that those comments relate to previously disclosed actual results or are made to correct factual inaccuracies of previously disclosed information.

 

	
v  

	
To the extent an analyst asks a question in which an analyst is seeking an answer to refine the analyst’s own projections, those questions should be answered by referring to already released materials.

 

 

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9.) Policy on Distributing Analyst Reports

 

Under no circumstances will the Company distribute analyst reports on the Company externally. The Company will generally endeavor to post on the investor relations section of its website the names and firms of analysts known to the Company to currently conduct research on the Company.

 

10.) Policy on Speeches, Interviews and Conferences

 

Any participation in public speeches, interviews or conferences by Dominovas Energy Corporation personnel must be reviewed and approved by the Vice President of Communications & Investor Relations. Once approved, Dominovas Energy Corporation personnel should adhere to the approved script and not disclose any material, non-public information about the Company during any question and answer sessions.

 

11.) Policy on Visits by Analysts or Other Financial Professionals

 

Any and all visits by analysts or other financial professionals to any plant site of the Company must be arranged by office of the Vice President of Communications & Investor Relations. Any communications during visits shall be subject to this Policy. All requests made directly to any plant or plant management/employees must be directed to the office of the Vice President of Communications & Investor Relations.

 

12.) Policy on Responding to Rumors

 

Generally, the Company will not comment on rumors or speculation. If the Company decides to comment on a rumor, only Authorized Spokespersons may speak on behalf of the Company. Rumors about the Company that are posted in Internet chat rooms are covered by this Policy. Employees should not respond to rumors about the Company, including those found in Internet chat rooms. All rumors should be referred to Vice President of Communications & Investor Relations for appropriate action.

 

 

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Approved by the Board of Directors July 2015

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