Denel

The Minister of Public Enterprises is the shareholder representative who appoints a board of directors to oversee the functioning of the company's executive management. he company groups together several divisions and subsidiaries in which Denel has varying degrees of shareholding. The company has developed a governance turnaround plan, which, amon... g other things, addresses governance lapses that occurred in the preceding period, including the elimination of fruitless and wasteful expenditure. The board is committed to applying and enforcing applicable corporate governance principles. It recognises that sound corporate governance enhances the long-term sustainability of the company and provides assurance to its stakeholders that the company is well managed.Risk management and internal control systems in place are designed in accordance with best practice in compliance with the King Code of Governance Principles; as well as the King Report on Governance (King IV report) recommendations, the Public Finance Management Act, no. 1 of 1999 (PFMA); and the governance requirements of the Companies Act, no. 71 of 2008 (Companies Act), as amended. ollowing the launch of King IV, the company is in the process of implementing the principles of King IV, although the Board charter and Terms of References of the Board committees already reflect the King IV principles. Governance principles and the main duties of the board, under the leadership of the chairperson; executive and non-executive directors and Group Chief Executive Officer (GCEO) are clearly documented in the board charter. The board charter includes a schedule of matters reserved for the board and the Terms of Reference of the respective board committees. The governance framework was developed to meet the group's strategic objectives and compliance requirements. t further balances the interests of stakeholders, minimises and avoids conflicts of interest, whilst practicing good corporate behaviour. he board further delegated management accountability to the ...Read More