CORPORATE governance

Approach to Effective Governance

The board of directors (the Board) continues with its ongoing commitment to the highest standards of ethical and effective governance, resulting in sustainable organisational performance that creates long-term value for all stakeholders. The Board has adopted and applies the principles of the King IV™ Report on Corporate Governance for South Africa ("King IV™"), and fully endorses and cultivates the characteristics of integrity, competence, responsibility, accountability, fairness and transparency, as outlined in Principle 1 of King IV™.

The Board embraces the King IV™ outcomes of an ethical culture, effective control, good performance and legitimacy. The Tongaat Hulett King IV™ application disclosure is available here and includes detail of how each of the sixteen (16) principles have been applied and embedded into business practice. The company’s approach to corporate governance continues to reflect that governance is regarded by the Board as being more than a mere compliance exercise that measures basic compliance with King IV™, but rather confirms that best practice principles are effectively applied and embedded by the company in its daily activities, resulting in short and long-term value creation for all stakeholders. During the year, comprehensive work was done to update the Tongaat Hulett Corporate Governance Manual and Framework, to align the Board charter, committee terms of reference, codes of best practice and policies to King IV™.

This corporate governance report has been aligned to King IV™, the Companies Act 2008, the Listings Requirements of the JSE Limited (JSE), and other pertinent statutes and regulatory requirements guiding the Board’s and company’s conduct for the period under review. As the custodian and focal point of corporate governance as required in Principle 6 of King IV™, the Board presents this corporate governance report to all stakeholders.