b'DIRECTORS REPORT >SHARES UNDER OPTIONThere were no unissued ordinary shares of Donaco under option at the date of this report.All remaining 2,514,186 options issued under the FY14, FY15 and FY16 option series were cancelled on 1 October 2018.SHARES ISSUED ON THE EXERCISE OF OPTIONSThere were no ordinary shares of Donaco issued, during FY19 and up to the date of this report,on the exercise of options granted (FY18: nil).INDEMNITY AND INSURANCE OF AUDITORThe company has not, during or since the end of FY19, indemnified or agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor.During FY19, the company has not paid a premium in respect of a contract to insure the auditorof the company or any related entity.PROCEEDINGS ON BEHALF OF THE COMPANYNo person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.NON-AUDIT SERVICESDetails of the amounts paid or payable to the auditor for non-audit services provided during FY19 by the auditor are outlined in Note 30 to the financial statements on page 75.The directors are satisfied that the provision of non-audit services during FY19, by the auditor(or by another person or firm on the auditors behalf), is compatible with the general standardof independence for auditors imposed by the Corporations Act 2001.The directors are of the opinion that the services as disclosed in Note 30 to the financial statements do not compromise the external auditors independence requirements of the Corporations Act 2001 for the following reasons: all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditors own work, acting in a management or decision-making capacity for the company, actingas advocate for the company or jointly sharing economic risks and rewards32 DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT'