King IVTM Report by Principle at 30 Jul 2018
Hosken Consolidated Investments Limited

Registration Number: 1973/007111/06
Run Date: 12/18/2018 4:23:27 PM

HCI is committed to the highest standards of business integrity, ethics and professionalism.  

HCI has, since FY2017, reviewed the practices underpinning the principles promoted in the King Report on Corporate Governance™ for South Africa 2016 (“King IV”).   Many of these principles are entrenched in the group’s internal controls, policies and procedures governing corporate conduct. The board is satisfied that HCI, in all material aspects, complies with the major recommendations of the King IV code to ensure that sound corporate governance and structures are applied within the group.

The  governance report was compiled by the group company secretary.   The report was assessed for quality and the degree of implementation by the chief executive officer and the financial director.   Thereafter, it was assessed by the audit and risk committee, and, on recommendation by this committee, approved by the board of directors.

Principle 1
The governing body should lead ethically and effectively.
Principle 2
The governing body should govern the ethics of the organisation in a way that supports the establishment of an ethical culture.
Principle 3
The governing body should ensure that the organisation is and is seen to be a responsible corporate citizen.
Principle 4
The governing body should appreciate that the organisation's core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value creation process.
Principle 5
The governing body should ensure that reports issued by the organisation enable stakeholders to make informed assessments of the organisation's performance, and its short, medium and long term prospects.
Principle 6
The governing body should serve as the focal point and custodian of corporate governance in the organisation.
Principle 7
The governing body should comprise the appropriate balance of knowledge, skills, experience, diversity and independence for it to discharge its governance role and responsibilities objectively and effectively.
Principle 8
The governing body should ensure that its arrangements for delegation within its own structures promote independent judgement, and assist with balance of power and the effective discharge of its duties.
Principle 9
The governing body should ensure that the evaluation of its own performance and that of its committees, its chair and its individual members, support continued improvement in its performance and effectiveness.
Principle 10
The governing body should ensure that the appointment of, and delegation to, management contribute to role clarity and the effective exercise of authority and responsibilities.
Principle 11
The governing body should govern risk in a way that supports the organisation in setting and achieving strategic objectives.
Principle 12
The governing body should govern technology and information in a way that supports the organisation setting and achieving its strategic objectives.
Principle 13
The governing body should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a way that supports the organisation being ethical and a good corporate citizen.
Principle 14
The governing body should ensure that the organisation remunerates fairly, responsibly and transparently so as to promote the achievement of strategic objectives and positive outcomes in the short, medium and long term.
Principle 15
The governing body should ensure that assurance services and functions enable an effective control environment, and that these support the integrity of information for internal decision-making and of the organisation's external reports.
Principle 16
In the execution of its governance role and responsibilities, the governing body should adopt a stakeholder-inclusive approach that balances the needs, interests and expectations of material stakeholders in the best interests of the organisation over time.