2008 Annual report - Sappi

Corporate governance // continued
Element/best practice
Sappi application/comments
Accountability
Board and director evaluations
The board should regularly review
processes and procedures to ensure
the effectiveness of the group’s
internal systems of control, so that its
decision-making capability and
the accuracy of its reporting are
maintained at a high level at all times
The board, through the nomination and governance committee, performs regular
self evaluations of its committees and the contribution of each individual director. The
composition and effectiveness of the board and its committees form part of
this evaluation
This review is primarily the role of the audit committee, refer to the further disclosure
disclosure on its activities in this section
Responsibility
A management committee is responsible for the implementation of risk manage-
ment. The board monitors the overall process of risk management in conjuction
conjunction with the audit committee
Induction programmes are tailored for each individual director on appointment as a
director and continued individual training is available thereafter
Directors retire by rotation at least every three years
Prior to the nomination of all candidates to the board, the nomination and governance
committee considers the skills, experience and background of such candidates in order
to ensure an appropriate balance to the composition of the board
Risk management: the board must
identify key risk areas and monitor
effectiveness of the risk management
process
Induction and training of directors
Terms should not exceed three years
Skills, experience and background
Fairness
Equal rights for shareholders and
other stakeholders
Every listed company should have
a practice regulating dealings in its
securities by directors, officers
and other selected employees
Whistle blowing
Each shareholder has the right to one vote for each share held. The interests of
minority shareholders are protected in law and in the regulations of the stock
exchanges on which Sappi Limited is listed
An approved policy has been implemented
‘Hotlines’ are available for all our employees to report anonymously on environmental,
safety, ethics, accounting, auditing, control issues or other concerns
Social responsibility
Sustainability report
The group’s sustainability management programme and activities are covered in a
separate Sustainable Development report which will be issued simultaneously with this
annual report. Also see pages 6 to 9 of this report
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