AFRICAN DAWN ANNUAL REPORT 2018 Application of principles in King IV continued 18 Strategy, Performance and Reporting Principle 5: The governing body should ensure that reports issued by the organisation enable stakeholders to make informed assessments of the organisation’s performance, and its short, medium and long term prospects. There is oversight over the Annual Financial Statements and meeting of standards as required. There have been some challenges in relation to disclosure in terms of IFRS and JSE requirements which have received attention. The governing body has been somewhat constrained in not being able to bring in experts when funds have been tight but are committed to comply with all requirements. The executives and audit committee understand the responsibility to comply and are committed to put effort into this aspect of reporting. SENS are used to inform the public of key events that occur. The King IV evaluation is disclosed to demonstrate compliance thereof. Governance Structures and Delegation Principle 6: The governing body should serve as the focal point and custodian of corporate governance in the organisation. The governing body should The governing body has had a difficult task as their role demonstrate leadership and often consisted of bringing a distressed company back on strategic direction, approve its feet. This was complicated by the SARS settlement that policy and planning and oversee has now been resolved and is in the process of being paid. monitoring of implementation Monthly payments will be made to February 2019. and execution by management and ensure accountability and reporting disclosure. The AFS note the number of meetings held by the governing body. Composition of the governing body. Principle 7: The governing body should comprise the appropriate balance of knowledge, skills, experience, diversity and independence for it to discharge its governance role and responsibilities effectively. The governing body is responsible to ensure that governance is in place by ensuring that the composition facilitates the oversight and governance role of the board as a whole. The governing body takes responsibility for ensuring that there is an appropriate balance of power and skills and experience with in the board members to provide the best possible governance environment without having unlimited resources to attract or retain a large number of directors. The Chief executive officer is also the acting Chairman as funding is limited. The CFO is appointed to the board and there are three independent board members. The directors have a rotation policy in place that ensures that the shareholders vote on reappointment on a scheduled basis. The three independent board members are all on the Audit Committee and the Remuneration Committee. Conflicts are noted and minuted in meetings. If the need arose, a board member would be recused from discussions where they could be conflicted. Board members are informally evaluated for independence. There are no board members that have served longer than nine years. Two of the board members are female. At this point no race diversity exists but a target of 30% is envisaged by 2020. There is disclosure in the financial statements covering information in relation to the directors.
AFRICAN DAWN 2018 Annual Report
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