King IV Report on Corporate Governance™ for South Africa 2016 (King IV™)

APPLICATION OF AND APPROACH TO KING IV™

Following the launch of King IV™, the Board of AEEI adopted King IV™ during the year under review.

In supporting King IV™, the Board recognises that it is the custodian of corporate governance for the Company and ensured that directors:

*    Lead ethically and effectively;
*    Supported an ethical culture;
*    Set the strategic direction for the Group for the year ahead;
*    Approved policies and planning; and
*    Administered and monitored the Group’s risks and opportunities, strategy, business model, performance and sustainable development;

The Board ensured compliance with applicable laws, rules, codes and standards in a way that supported the Group in being ethical and a good corporate citizen. It ensured that remuneration is fair and transparent and that the integrity of information for decision-making internally and externally was assured. A stakeholder-inclusive approach was applied in the Group to ensure that the needs, interests and expectations of material stakeholders were addressed.