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Principles of corporate governance and structures
| Corporate governance encompasses the concept of sound
business practice, which is inextricably linked to the Group's
management systems, structures, policies and culture of
governance, and ensures that the Group acts towards all
stakeholders in a responsible and transparent manner from an
economic, social and environmental perspective. The Board reaffirms its commitment to sound governance. It ensures that the Group's business is conducted in accordance with high standards of corporate governance, using risk management and control in accordance with local and internationally accepted corporate practice. These standards are well embedded in the Group's system of internal controls, which have been implemented to comply with King II recommendations and are being reviewed in light of King III requirements. |
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BOARD STRUCTURES |
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| The Board meets at least quarterly and is responsible to
shareholders for setting direction through strategic objectives
and key policies, and monitoring implementation through
structured reporting systems. The Company has a unitary Board structure, comprising two executive directors and 10 non-executive directors (six of whom are independent non-executives), as defined by King III. The directors are drawn from diverse backgrounds and bring a wide range of experience, insight and professional skills to the Board to ensure effective leadership of Anglo Platinum Limited. Generally directors have no fixed term of appointment but retire by rotation every three years and, if available, are considered for reappointment at the annual general meeting. Directors appointed to the Board during the year retire at the next annual general meeting of the Company, enabling shareholders the opportunity to confirm their appointment. The Nomination Committee considers executive succession planning and makes appropriate recommendations to the Board. It evaluates skills, knowledge and experience required to implement Group strategy. With regard to Tom Wixley, who has served as an independent director for more than nine years, the Board is satisfied that there are no relationships or circumstances likely to affect, or which appear to affect, his judgement as director, and his independence is not affected or impaired by his length of service. Fred Phaswana resigned as chairman of the Board on 31 August 2010 and the Board appointed Cynthia Carroll, chief executive of Anglo American plc, as chairman with effect from 1 September 2010. The Anglo Platinum Limited Board unanimously supported the appointment of Cynthia Carroll as chairman, following her nomination by the Board of Anglo American plc. Anglo American is the majority shareholder of Anglo Platinum Limited and the appointment of Cynthia Carroll as chairman continues the approach of drawing the Anglo Platinum Limited chairman from the Anglo American Board, of which Fred Phaswana also was a member for almost seven years. The Board also appointed Valli Moosa as deputy chairman and lead independent non-executive director and chairman of the Governance Committee with effect from 1 September 2010. Valli Moosa replaces Tom Wixley who served in that role for nine years and who continues in his role as an independent non-executive director and chairman of the Remuneration Committee. After careful consideration, including full consideration of the interests of minority shareholders, the Board decided to elect Mrs Carroll to the chairmanship. Mrs Carroll meets the person specification and possesses the qualities necessary to fulfil the role of chairman. In deciding to appoint Mrs Carroll, the Board was cognisant of the preference stated by King III for the chairman to be independent on appointment. However, the Board has also noted that the Code contemplates the appointment of a non-independent chairman, requiring that, in those circumstances, a lead independent non-executive director should be nominated. In the case of Anglo Platinum Limited, the Board believes that the existence of an independent deputy chairman, supported by five other independent non-executive directors, provides a robust Board structure to ensure good governance. The Board has adopted a Statement of Division of Responsibilities among the chairman, the lead independent non-executive director and the chief executive officer, which clearly sets out the responsibilities of each role. The Board has a Charter setting out its mission, role, duties and responsibilities, and, in particular, the following: |
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| The Board and management continually review and enhance the
systems of control and governance to ensure that the Group's
business is managed ethically and within prudent risk parameters, in
line with internationally accepted standards of best practice. The
Corporate Governance Committee, from time to time, monitors and
deliberates on changes to the legislative and statutory environment,
new business policies and matters of compliance. This ensures that
the Board is kept apprised of new developments, and monitors and
supports governance and sound business practice in the
organisation. Despite the King III Code being applied by the JSE only from 1 January 2011 in respect of Anglo Platinum Limited, the Company has attempted during 2010, wherever possible, to implement the King III principles set out in the new Code. Where this has not been possible, the Company has explained its position and given reasons for non-compliance. The terms of reference of the Board and Board committees, the roles and responsibilities of the directors, as well as the Company's Business Integrity Policy for directors and employees, are detailed and updated as necessary. David Weston resigned as a non-executive director on 27 January 2010. Fred Phaswana resigned as chairman on 31 August 2010 and Cynthia Carroll was appointed chairman on 1 September 2010. Tom Wixley resigned as deputy chairman on 31 August 2010 and Valli Moosa was appointed as deputy chairman and lead independent non-executive director on 1 September 2010. Brian Beamish and Godfrey Gomwe were appointed as non-executive directors, with effect from 7 May and 1 September 2010 respectively. |
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COMMITTEES OF THE BOARD |
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| The Board has established a number of standing committees, which
are ultimately accountable to it. These committees assist the Board
by focusing on specialist areas. The Board committees meet
independently and provide feedback to the main Board through their
chairmen. The roles and representation of these subcommittees are
listed in the table. Except for the chairman, who receives a single inclusive fee, the Board and Board subcommittee chairmen and members are paid a flat fee per annum, as recommended by the Executive Committee, noted by the Remuneration Committee and approved by the Board of directors and shareholders. This fee encompasses the responsibility of ensuring that each subcommittee attains its core objectives in line with each committee's terms of reference. Company executives are evaluated - and remunerated and rewarded - based on targets, key performance indicators and corporate objective weightings that include safety and sustainable development criteria. See the detailed remuneration report in the integrated annual report. Evaluation of the performance of all Board members and members of subcommittees is formally conducted annually. This evaluation process was conducted internally during 2010, and it assessed the Board of directors and subcommittees based on a self-evaluation process and specific questions and criteria. Each director is encouraged to focus on his or her personal perception of the Board as a whole, and the performance of Board committees, the CEO and the finance director. It was deemed inappropriate in 2010 to assess the performance of the newly appointed chairman and deputy chairman (based on their short term in office). A comprehensive report and feedback are delivered on the results of the assessments to assist the Board in becoming more effective. |
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DIRECTORS’ ATTENDANCE AT BOARD AND COMMITTEE MEETINGS IN 2010 |
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| * By invitation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
THE BOARD |
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| The Board is responsible to shareholders for setting economic, social and environmental direction through strategic objectives and key policies, and monitors implementation through structured reporting systems. From 1 January 2010 to the date of this report on 4 February 2011, the Board comprised of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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BOARD SUBCOMMITTEES |
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| In addition to the abovementioned subcommittees of the Board,
several operating committees function within the Group. The
Executive Committee (Exco) comprising directors of wholly owned
subsidiary Company Anglo Platinum Management Services
(Proprietary) Limited, the provider of the major portion of financial,
technical and administrative advisory services to the Company. Members of the Exco are detailed above and they usually meets on a weekly basis. The Operations Committee (Opsco) is chaired by the CEO and is constituted of the heads of all departments. Opsco meets on a monthly basis to review the operating performance of the Company. |
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KEY GOVERNANCE POLICIES |
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| A number of governance policies are enforced within Anglo Platinum Limited and its subsidiary companies. These comprise, but are not confined to, the declaration of business interests, the declaration of gifts, gratuities and hospitality, anti-insider trading, confidentiality, anti-competitive behaviour, authority limits and various other general operational policies and procedures. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business principles and business integrity code |
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| Ethics are practised at Anglo Platinum Limited by promoting
leadership and inculcating a culture of integrity; by the
observance of directors' fiduciary duties and responsibilities;
by avoiding conflicts of interest and acting in the best interests
of the organisation; by encouraging whistle-blowing; and by
promoting the values and principles set out in our codes of
conduct. During 2010, the Company refreshed its Business Principles and Integrity Policy, and group-wide training was conducted to ensure that employees and suppliers were made aware of the requirements of the revised code and how they are expected to conduct themselves. |
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Authority policy manual |
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| Anglo Platinum Limited has a detailed Authority Policy Manual in
place, which is updated on a regular basis. Its objectives are to
delegate transactional and contractual authority from the Board
to Anglo Platinum Limited staff and officials at various levels.
This provides effective and practical directives and guidelines for
minimising or eliminating the Company's possible exposure to
risk emanating from the unauthorised actions of its officials. It also ensures that Anglo Platinum Limited staff and officials fully understand demarcated authorisation limits, and strictly adhere to them. |
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Systems, compliance and enforcement |
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| Compliance with, and enforcement of, the Companies Act, JSE
Listings Requirements, legislation governing the mining industry
and the Company's governance policies is monitored and
tracked through internal monitoring and reporting systems,
reviews, and internal and external audits. Eighty-nine employees were dismissed in 2010, stemming from breaches of certain aspects of the Business Principles. Fifty-three suppliers' contracts were terminated in 2010. No requests for information were lodged with the company in terms of the Promotion of Access to Information Act, 2000, in 2010. |
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GOVERNANCE AND OUR JOINT-VENTURE PARTNERS |
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| Non-managed joint ventures and associates are governed by monthly steering and management committee meetings and quarterly joint-venture Executive Committee meetings at which Anglo Platinum Limited has representation. The agreements make provision for the management committees to constitute subcommittees to monitor areas such as employment equity, resource management, planning, production, safety, health, environment, audit, social development, community engagement and remuneration. View a breakdown of the joint-venture governance structures. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOVERNANCE OF SUSTAINABLE DEVELOPMENT IN PROJECTS |
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| Environmental impact assessments (EIA) are compiled for all new projects in terms of South African legal requirements. Depending on the applicable legislation, either an EIA under the National Environmental Management Act, or an environmental management programme (EMP) report under the Minerals and Petroleum Resources Development Act, is compiled. Regardless of the authorising authority, the Group uses the same criteria for the compilation of both types of impact assessments. During the pre-feasibility phase of projects, a scoping report is compiled after extensive stakeholder consultation. The scoping report defines the issues that should be investigated during the impact assessment stage. The impact assessment and proposed mitigation stages are completed during the feasibility phase of the project. The impact assessment contains specialist reports on all the potential impacts that the project may have, including socio-economic impacts. Consultation with stakeholders continues during the impact assessment and approval phases. Feedback is given to stakeholders after final regulatory approval of the documents. Apart from this external approval, all impact assessments are also peer-reviewed by Anglo American's technical department against its own criteria, which are based on international good practice and go beyond compliance. The criteria used fully embraces the concept of sustainable development. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| * Managing partner ° Chairman |
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Copyright 2010-2011 by Anglo American. All rights reserved.
