CREATING VALUE THROUGH SOUND CORPORATE GOVERNANCE

Sound corporate governance is the foundation of AEEI’s business and is pivotal in delivering long-term value to our stakeholders. AEEI has a positive association with all is stakeholders and is committed to the highest standards of ethics and business integrity in all its activities.

OUR GOVERNANCE FRAMEWORK

The Board of AEEI supported by the committees reviews the Group’s governance structures and processes to ensure that they support ethical leadership, good corporate citizenship and is applied in the best interest of its stakeholders.

As the Company is listed on the Johannesburg Stock Exchange (JSE), it is subject to regulatory controls and has to provide reasonable assurance in terms of its compliance with all the relevant requirements.

STATEMENT OF COMMITMENT

The Board is committed to the highest standards of business integrity and has adopted an integrated approach to managing the Group to ensure that the governance structure actively identifies, communicates on and responds to material issues that impact on the Group’s capacity to create value. The Board believes that it has addressed all material issues appropriately and that it fairly represents the integrated performance of the Group. The Board continuously reviews the Group’s governance structures and processes to incorporate and accommodate new corporate developments, to facilitate effective leadership, sustainable corporate citizenship in support of the Group’s strategy and to reflect national and international corporate governance standards, developments and best practices.

The Board is satisfied that effective controls have been implemented and complied with throughout the Group and that the Company fully complies with the spirit and form of the continuing obligations of the Listings Requirements of the JSE, King Code of Governance Principles for South Africa (King III Code) as well as the Companies Act.

APPLICATION OF AND APPROACH TO KING III

The Board of AEEI remains committed to and endorses the principles of the Code of Corporate Practices and Conduct as set out in the King III Report (“the Code”). Corporate governance ensures that the manner in which directors manage and control the Company, treat stakeholders and interact with the environment is with respect, integrity, transparency and responsibility.

In supporting the Code, the directors recognise the need to conduct the Group’s businesses with integrity and in accordance with International Financial Reporting Standards (“IFRS”) and international best practice.

The Board is satisfied that the majority of the principles contained in King III have been applied by the Company. The two principles not complied with are:

  • Principle 2.21 – An interim company secretary has been appointed after the resignation of Ms Carmelita Arendse. An external resource has been identified and will be appointed in December 2016.
  • Principle 9.3 – External assurance for the financial data for the year ended 31 August 2016 and in accordance with the International Standards on Auditing was performed by Grant Thornton Cape Inc., our BBBEE verification was done by Veridex BBBEE Agency. AEEI will consider external assurance for the non-financial data in the future.

A statement on AEEI’s application of the principles of the King III Code is available on www.aeei.co.za.

The Board is in the process of preparing for King IV.