STAKEHOLDERS & THE COMPANY

Introduction

Under the ASX Listing Rule 4.10, companies are required to disclose in their Annual Report the extent to which they have followed the best practice recommendations of the ASX Corporate Governance Council.

Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the Company are achieved, how risk is monitored and assessed, and how performance is optimised.

Good corporate governance structures encourage companies to create value and provide accountability and control systems commensurate with the risks involved.

Brainytoys Limited’s Policy

The Board recognises that it has a duty to all legitimate stakeholders in the Company, be they employees, contractors, the community, or shareholders.

Brainytoys Limited primary objective is to maximise shareholder wealth through the development of profitable toy and game activities.

Brainytoys Limited is committed to conducting all activities in a manner that:

1. Protects the safety and health of all employees, contractors, and community members.
2. Recognises, values and reward the individual contribution of each employee.
3. Achieves a balance between economic development and maintenance of social responsibility.
4. Maintains good relationships with suppliers and the local community.
5. Is honest, lawful, and moral.

All employees (including Directors) are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the Company.

Brainytoys Limited welcomes and encourages the involvement of all employees in the achievement of these objectives, and expects them to uphold these Company values.