Page 19 - annualreport2020

AFRICAN DAWN ANNUAL REPORT 2020

Application of principles in King IV™

REGISTER OF APPLICATION OF THE KING IV PRINCIPLES

The Aplication of principles in King IV™ report is also available on Afdawn's website at www.afdawn.co.za.
Afdawn is a listed company on the AltX of the JSE Limited (“JSE”). The following table has been developed to provide a summary assessment of
the application of the specific applicable recommendations of King IV, which shows that Afdawn applied all the principles of King IV during the
financial year ended 29 February 2020.

Leadership, Ethics and Corporate Citizenship

Leadership

Principle 1: The board should lead ethically and effectively.

The board of directors exercises effective leadership, adhering to the duties of a director. The board as a whole has the necessary competence
and the directors act ethically in discharging their responsibility to provide strategic direction and control of the Company as provided for in the
Board charter.
The Board charter outlines the policies and practices of the Board on various matters such as conflicts of interest and independence. The
directors adhere to Afdawn’s declarations of interest policy, which is based on the Companies Act and the JSE Listings Requirements. The Board
takes note of the declarations of interest tabled and recuses members from all decisions that could be or is perceived as a conflict.

The Board is committed to driving the strategy and operations of Afdawn, based on an ethical foundation, to support a sustainable business,
acting in the best interest of Afdawn, whilst considering the economy, society as a whole, environment and its stakeholders. This consists of
considering risks in the business and the monitoring of how management has implemented Afdawn’s strategy thereby ensuring accountability
for the Company’s performance.

The board exercises control through a framework of detailed reporting to the Board and its committees, Board reserved decision making
authority and assurance on internal controls.
Organisational ethics

Principle 2: The board should govern the ethics of the company in a way that supports the establishment of an ethical culture.

The board determines and sets the tone of Afdawn’s values, including principles of ethical business practice, human rights considerations and
the requirements of being a responsible corporate citizen and through the Social and Ethics Committee approves the Company’s code of ethics.

Management has been delegated the responsibility for implementation and execution of the code of ethics and the board, through the Social
and Ethics Committee, exercises ongoing oversight of the management of ethics and ensuring it is integrated in the operations of the Company.

The ethics code guides interaction with all stakeholders of the Company and addresses the key ethical risks of the Company.
Responsible corporate citizenship

Principle 3: The board should ensure that the company is and is seen to be a responsible corporate citizen.

In accordance with its role of overseeing Afdawn’s conduct as a good corporate citizen, the board approves the strategy of the business
including matters relating to sustainability. Through stakeholder engagement the board is committed to understanding and responsive to the
expectations of all stakeholders.
Afdawn is a values driven organisation and the board is committed to ensuring that the Company fulfils its legal and moral obligations as a good
corporate citizen.

17