Annual Report 2011

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BOARD COMMITTEES AND THE CR/HSE REPRESENTATIVE To maximise the efficiency of the Board’s work and to ensure a thorough review of certain issues, the Board has established a Compensation Committee, an Audit Committee and a Reserves Committee and has appointed a CR/HSE Board Representative. The tasks and responsibilities of the Committees are detailed in the terms of reference of each Committee, which are annually adopted as part of the Rules of Procedure of the Board. Minutes are kept at Committee meetings and matters discussed are reported to the Board. In addition, informal contacts take place between ordinary meetings as and when required by the operations. Compensation Committee The Compensation Committee assists the Board in Group management remuneration matters and receives information and prepares the Board’s and the AGM’s decisions on matters relating to the principles of remuneration, remunerations and other terms of employment of Group management. The objective of the Committee in determining compensation for Group management is to provide a compensation package that is based on market conditions, competitive and takes into account the scope and responsibilities associated with the position, as well as the skills, experience and performance of the individual. The Committee’s tasks also include monitoring and evaluating programmes for variable remuneration, the application of the Policy on Remuneration as well as the current remuneration structures and levels in the Company. For further information regarding Group remuneration matters, see the remuneration sections of this report on pages 50–51. Audit Committee The Audit Committee assists the Board in ensuring that the Company’s financial reports are prepared in accordance with International Financial Reporting Standards (IFRS), the Swedish Annual Accounts Act and accounting practices applicable to a company incorporated in Sweden and listed on the NASDAQ OMX Stockholm and the Toronto Stock Exchange. The Audit Committee supervises the Company’s financial reporting and the efficiency of the Company’s financial internal controls, internal audit and risk management and its primary objective is to provide support to the Board in the decision making processes regarding such matters. In addition, the Committee is empowered by the Committee’s terms of reference to make decisions on certain issues delegated to it, such as review and approval of the Company’s first and third quarter interim financial statements on behalf of the Board. The Audit Committee also regularly liaises with the Group’s external auditor as part of the annual audit process and reviews the audit fees and the auditor’s independence and impartiality. The Audit Committee further assists the Company’s Nomination Committee in the preparation of proposals for the election of auditor at the AGM, as and when required. Reserves Committee The Reserves Committee was created in connection with the listing of Lundin Petroleum’s shares on the Toronto Stock Exchange in 2011 and reviews and reports to the Board on matters relating to the Company’s policies and procedures for BOARD OF DIRECTORS Lukas H. Lundin Director since 2001 Dambisa F. Moyo Director since 2009 Member of the Compensation Committee William A. Rand Director since 2001 Chairman of the Audit and Compensation Committees Magnus Unger Director since 2001 Member of the Audit and Compensation Committees Chairman of the Nomination Committee For more information see pages 54–55 47

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