At AEEI, we are committed to the highest standards of governance, integrity and ethical standards. Acting ethically, lawfully and with integrity is critical to our business success. We believe that responsible business practices enable us to create value. Our Board leads the business ethically, transparently and with integrity to create and sustain value for our stakeholders. Through our commitment to good corporate governance, we have a diversified Board that manages and leads from the top down and ensures that our business is run ethically and transparently and that we remain responsible corporate citizens.
Our governance leadership, structures and processes ensure that our business is well-managed and controlled and supports our value creation process. Our strategy includes an inclusive review process that considers the risks and opportunities connected to the broader context in which we operate. Our sound corporate governance and ethics processes ensure that we deliver against our strategy to create long-term value for our stakeholders.
We must establish and maintain trust with our stakeholders to achieve sustained value. Our structure enables the Board to retain effective control while delegating authority to relevant committees.
Despite the challenging macroeconomic environment and challenges including the effect of the COVID-19 pandemic, we maintained business continuity and liquidity, reviewed the risks and opportunities, including the short-, medium- and long-term effects on our business, and ensured the well-being of our employees. This included a stakeholder-inclusive approach to executing our governance role and responsibilities while remaining committed to the principles of King IV™ recommendations entrenched in our policies, internal controls, terms of reference, procedures, and processes.
Custodians of governance
Primary governance roles and collective responsibility
Our governance structure
Our governance structure supports the Company’s strategy. It flows to the subsidiaries and divisional levels to ensure that the business has a structure within which management can operate effectively. The Board plays a pivotal role in strategic planning and has established clear KPIs to measure the Company’s strategic objectives. In addition, the Board ensures that its sound governance framework will enhance good corporate governance, improve internal controls and enhance the Company’s performance.
The Board is supported by various committees and the executive management team with clear terms of reference to discharge its responsibilities. The Board is responsible for the strategic direction of the Group’s and the Company’s governance framework.
Application of and approach to King IV™
The Board aims to achieve the governance outcomes defined in King IV™, and is the custodian of corporate governance for the Company and ensures that directors:
- lead ethically and effectively;
- support an ethical culture;
- set the strategic direction for the Group for the short-, medium- and long-term;
- approve policies, procedures, and planning; and
- administer and monitor the Group’s risk and opportunities, strategy, business model, performance and sustainable development.
The Board remains committed to the principles of King IV™ and ensures that its recommendations are diligently applied to policies, terms of reference, procedures, processes, and controls. This leads to the alignment of the following SDGs.
Statement of compliance
The Board is committed to the highest standards of ethics, governance and business integrity and has adopted an integrated approach to managing the Group. This ensures that the governance structure actively identifies, communicates, and responds to material matters that impact the Group’s capacity to create value. The Board believes that it has addressed all material matters 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. This includes facilitating effective leadership, providing sustainable corporate citizenship supporting the Group’s strategy, and reflect national and international corporate governance standards, developments, and best practices.
The Company has complied with and operates in conformity with the provisions of the Companies Act of South Africa, No. 71 of 2008 and any other applicable laws relating to its incorporation and the Company’s MOI and other relevant constitutional documents
AEEI’s application and adoption of the various recommendations set out in King IV™ is outlined in our application statement, which is available on: King IV on corporate governance report.
Leading from the top down
Our culture, values, and governance are set and supported by the Board and management. All employees in the Group embrace our culture in the organisation.
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