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

APPLICATION OF AND APPROACH TO KING IV(tm)

Following the launch of King IV(tm), the Board of AEEI adopted King IV(tm) during the year under review.

In supporting King IV(tm), 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.