AFRICAN DAWN ANNUAL REPORT 2018 Application of principles in King IV continued 21 Remuneration Governance Principle 14: The governing body should ensure that the organisation remunerates fairly, responsibly and transparently so as to promote achieve the achievement of strategic objectives and positive outcomes in the short, medium and long term. The governing body should The governing body has a Remuneration Committee that assume responsibility for the takes responsibility for the remuneration of the company. governance of remuneration by setting the direction for how remuneration should be approached and addressed on an organisation-wide basis. As the company has had significant challenges to overcome in order to ensure long term sustainability remuneration and proper incentivisation of employees has not been possible. Employees have forgone increases for a number of years. Executives have adjusted their remuneration to ensure that the company cashflow was not compromised. Once the company is back on a profit making path this will be reviewed. The details are included in the Annual Financial Statements. Assurance Principle 15: The governing body should ensure that assurance services and functions enable an effective control environment, and that these support the integrity of information for internal decision making and of the organisation’s external reports. The governing body should assume responsibility for assurance by setting the direction concerning the arrangements for assurance services and functions. Although a combined assurance model is in early stages of implementation the governing body has ensured that the auditors, sponsors, the company secretary and experts where necessary have been employed to ensure that appropriate assurance is given on key aspects of reporting of information to the stakeholders. Once internal audit is affordable it will be introduced by the governing body. Stakeholders Principle 16: In the execution of its governance role and responsibilities, the governing body should adopt a stakeholder-inclusive approach that balances the needs, interests and expectations material stakeholders in the best interests of the organisation over time. The governing body should set the direction of how stakeholders should be approached and conducted in the organisation. It is required to delegate, have oversight of and report on its stakeholder focus. The governing body supports a stakeholder approach and in addition to its shareholders focusses on other key stakeholders including its customers who are part of the communities it serves, the regulators and employees. The governing body endeavours to ensure that it treats all stakeholders fairly and with integrity. Once the company is fully back on a profitable footing consideration will be given to additional social responsibility issues. The formulation of a more in depth framework needs to be developed to formalise a process that demonstrates all the key aspects our stakeholder approach. This is currently under consideration. Conclusion: The governing body subscribes to the principles of King IV and believe that the company is on an appropriate journey to constantly improve and comply more fully with the requirements of King IV.
AFRICAN DAWN 2018 Annual Report
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