Corporate governance and Policies
CORPORATE GOVERNANCE APPROACH
Corporate governance forms an overarching framework in which our business operates and we are committed to promoting good governance and ethics within all areas of our business. To achieve this, the group continues to enhance and align its governance structures, policies and procedures to support its operating environment and strategy.
Good corporate governance is an integral part of the group’s sustainability. Adherence to the standards and recommendations set out in the King III Report and other relevant laws and regulations is vital to achieving our strategic priorities.
APPLICATION OF KING III PRINCIPLES
The King Code of Governance (King III) is the third report issued by the South African King Committee on Corporate Governance codifying principles of corporate governance revolving around leadership, sustainability and corporate citizenship. The King III approach to governance is based on the principle of apply or explain. A Board can adopt a practice different from that recommended in King III if it believes it to be in the best interests of the company, but must explain why this is done.
King III is applicable to all entities, public, private and non-profit organisations. Compliance with certain of the governance principles in the King Reports is a requirement for companies listed on the Johannesburg Stock Exchange.
The Institute of Directors in Southern Africa (IoDSA) is a professional body that exists to promote corporate governance, and to maintain and enhance the credibility of directorship as a profession. IoDSA is the custodian of the King reports and formally introduced the King Code of Governance Principles and the King Report on Governance (King III).
IoDSA has developed a Governance Assessment Instrument (GAI) in the form of a web-based tool that serves as a measure of evaluating the implementation of good corporate governance structures, policies and procedures. The basis of the assessment criteria of the GAI tool is the principles and recommendations contained in King III as well as provisions of the South African Companies Act, 2008 and the JSE Listing Rules that pertain to governance.
The GAI calculates an overall score indicating the status of application of King III as follows:
AAA - Highest application
AA - High application
BB - Notable application
B - Moderate application
C - Application to be improved
L - Low application
AngloGold Ashanti assessed its approach to complying with the King III using the GAI tool and achieved the highest application, AAA rating, a detailed analysis is available by clicking the link King III Governance Assessment.
AngloGold Ashanti is committed to sound principles of corporate governance. In compliance with best practice, and to meet its obligations in terms of the US Sarbanes-Oxley Act of 2002, NYSE and JSE Rules and the King Report III on Corporate Governance, AngloGold AShanti's Board of directors has adopted the following policies, procedures and guiding principles as part od the company's corporate governance guidelines.