Corporate governance

Pick n Pay Stores Limited

Corporate governance report

Chapter and principle   Application Comments  
Chapter 6 – Compliance with laws, rules, codes and standards      
The Board should ensure that the Company complies with applicable laws and considers adherence to non-binding rules, codes and standards.   Refer to the legal report here.  
The Board and each individual director should have a working understanding of the effect of the applicable laws, rules, codes and standards on the Company and its business.    
Compliance risk should form an integral part of the Company’s risk management process.    
The Board should delegate to management the implementation of an effective compliance framework and processes.    
Chapter 7 – Internal audit      
The Board should ensure that there is an effective risk-based internal audit.   Refer to the audit committee report here.  
Internal audit should follow a risk-based approach to its plan.    
Internal audit should provide a written assessment of the effectiveness of the Company’s system of internal controls and risk management.    
The audit committee should be responsible for overseeing internal audit.    
Internal audit should be strategically positioned to achieve its objectives.    
Chapter 8 – Governing stakeholder relationships      
The Board should appreciate that stakeholders’ perceptions affect a Company’s reputation.   Refer to engaging with our stakeholders here.  
The Board should delegate to management to proactively deal with stakeholder relationships.    
The Board should strive to achieve the appropriate balance between its various stakeholder groupings, in the best interests of the Company.    
Companies should ensure the equitable treatment of shareholders.    
Transparent and effective communication with stakeholders is essential for building and maintaining their trust and confidence.    
The Board should ensure that disputes are resolved as effectively, efficiently and expeditiously as possible.    
Chapter 9 – Integrated reporting and disclosure      
The Board should ensure the integrity of the Company’s integrated report.   The audit committee reviews the annual financial statements, and the Integrated Report makes a recommendation to the Board for approval.  
Sustainability reporting and disclosure should be integrated with the Company’s financial reporting.    
Sustainability reporting and disclosures should be independently assured.   Refer to note 5.