Full integrated annual report - African Bank - Investoreports

68
Corporate governance
This is a condensed version of the corporate governance report. For more detailed information please
refer to our web-based corporate governance report at: http://africanbank.investoreports.com/
africanbank_ar_2011/governance/
Integrated report 2011 | African Bank Investments Limited
Introduction
The board of directors and senior management are committed to the
highest standards of corporate governance and strive to the highest
moral and ethical business standards, as well as sound and transparent
business practices.
African Bank Investments Limited embraces the principles of good
corporate governance in order to ensure that an ethical foundation exists
which promotes, inter alia:
Responsibility – by assuming responsibility for the actions of the
company and being willing to take corrective actions to keep the
company on a strategic path, that is ethical and sustainable;
Accountability – by being able to justify its actions and decisions to
shareholders and other stakeholders;
Fairness – by giving fair consideration to the legitimate interests and
expectations of all stakeholders of the company and;
Transparency – by disclosing information in a manner that enables
stakeholders to make an informed analysis of the company’s
performance and sustainability.
King III
The board is committed to complying, in all material respects, with the
principles contained in the King Code of Governance for South Africa,
2009 (King III), as well as to the additional requirements for good
corporate governance stipulated in the JSE’s Socially Responsible
Investment Index (SRI). We have performed a thorough review of
the implications of King III and, where appropriate, the corporate
governance structure has been amended to comply with the new Code
which became effective on 1 March 2011.
Internal audit has reviewed compliance with King III. The group complies
with all aspects of the code except in the following two instances:
1. Our non-executive fees are fi xed. The fi xed fee basis works more
effi ciently for the group because we have a performance appraisal
system to deal with non-attendance.
2. Board and committee evaluations. The group has conducted these
evaluations for a number of years. The performance evaluation
was not carried out in the current year as a result of the signifi cant
number of changes to the boards and sub committees. It will be
performed again in the fi rst half of calendar 2012.