DroneShield Ltd (ASX: DRO) shares are getting a lot of attention on Monday.
In morning trade, the counter drone technology company's shares were up over 5% to $2.94 at one stage.
At the time of writing, they have pulled back but remain up almost 1% to $2.80.
Why are DroneShield shares in focus today?
Investors have been buying the company's shares today after it released an update on its governance review.
DroneShield launched its independent review into its continuous disclosure and securities trading policies and other areas last month after a series of controversies that sparked a sharp selloff.
According to the release, the review was overseen by independent directors Simone Haslinger and Richard Joffe, whereas Herbert Smith Freehills Kramer was engaged to undertake the review.
Following completion of the review last week, the DroneShield board has undertaken immediate action.
What action is being taken?
In response to its directors selling down their holdings last month, DroneShield's board revealed that it will establish a mandatory minimum shareholding policy (MSP) for all directors and members of senior management.
Under the MSP, each director will be expected to hold ordinary shares in the company equivalent in value to their annual base fee within three years from the establishment of the MSP.
For the CEO, they will be expected to hold ordinary shares in the company equivalent in value to 200% of their annual salary within 12 months from the MSP's establishment.
DroneShield will also update its securities trading policy and continuous disclosure policy to align them with market practice and expectations of an ASX 200 company. The market will be notified once these policies have been updated.
Another action being taken is the board initiating a search for a suitable candidate to be appointed as an additional independent non-executive director with ASX 200 experience.
Remuneration structure review
DroneShield also advised that its board is undertaking a review of the director and executive remuneration framework, supported by PayIQ Executive Pay.
The review will focus on aligning the company's remuneration arrangements with the expectations for an ASX 200 share and the dynamic industry in which the company operates.
It is intended that an update on this review will be provided in the company's next remuneration report, which will be published in February.
Process improvements
Finally, in response to the withdrawal of an announcement last month, DroneShield advised that it is continuing to enhance the verification processes.
In addition, following the conclusion of the ERP implementation in January, an appropriately qualified external adviser will undertake a broader review of the company's financial reporting processes and internal controls.
