AFRICAN DAWN ANNUAL REPORT 2019 Application of principles in King IV™ continued Principle 14: The governing body should ensure that the organisation remunerates fairly, responsibly and transparently so as to promote the achievement of strategic objectives and positive outcomes in the short, medium and long term. The governing body should The Board has a Remuneration Committee that takes assume responsibility for the 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. 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 Board 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. 21 Once internal audit is affordable it will be introduced by the Board. Stakeholder Relationships Principle 16: In the execution of its governance role and responsbilities, the governing body should adopt a stakeholder-inclusive approach that balances the needs, interests and expectations of material stakeholders in the best interests of the organisation over time. The governing body should assume responsibility for the governance of stakeholder relationships. The key stakeholders are currently shareholders, customers, employees and regulators and when issues arise the Board takes part in the discussions and resolutions developed together with management when significant issues arise. The Board is available to the stakeholders at the AGM to answer any questions stakeholders may have. The Board takes responsibility for the relationships with stakeholders of Group companies. The key subsidiary being Elite Group (Pty) Ltd. The focus of the Company is to treat stakeholders fairly. The key focus has been on ensuring the sustainability of the Company which benefits the shareholders, customers, employees and more indirectly the regulators. As noted, the remuneration has not been fair but has been restricted by the limited funding of the Group. Conclusion: The Board subscribes to the principles of King IV™ and believes that the Company is on an appropriate journey to constantly improve and comply more fully with the requirements of King IV™.
AFDAWN AR FINAL 2019
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