APPROACHESANDDEVELOPMENTSI

NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

APPROACHESANDDEVELOPMENTI
NCORPORATEGOVERNANCE

1
. Twod
ist
inc
tap
pro
ache
stoCo
rpo
rat
ego
ver
nanc
e

1
.1. Rul
eba
seda
ppr
oac
h

 Ar
ule
s-b
ase
dap
pro
acht
oco
rpo
rat
ego
ver
nan
cei
sba
sedo
nth
evi
ewt
hatc
omp
ani
esmus
tber
equi
redb
yla
w(o
rbys
omeo
the
r
f
ormo
fco
mpul
sor
yre
gul
ati
on)t
oco
mpl
ywi
the
sta
bli
she
dpr
inc
ipl
eso
fgo
odc
orp
ora
teg
ove
rna
nce
.Th
erul
esmi
ghta
ppl
yon
lyt
o
s
omet
ype
sofc
omp
any
,suc
hasma
jors
toc
kma
rke
tco
mpa
nie
s.Ho
wev
er,
fort
hec
omp
ani
est
owh
icht
heya
ppl
y,t
her
ule
smus
t
b
eob
eye
dan
dfe
w(i
fan
y)e
xce
pti
onst
oth
erul
esa
rea
ll
owe
d.

 I
tisf
ol
lo
weda
ndc
hamp
ion
edb
yth
eUS
.

1
.1.
1. Cha
rac
ter
ist
ic
sofr
ule
-ba
seda
ppr
oac
h

 Pr
esc
ri
beds
eto
fCGr
equi
reme
nts
.

 Qui
ckwa
yofe
nsur
ingc
omp
li
anc
e.

 Ad
optac
hec
kli
sta
ppr
oac
h.

 Cl
eard
ist
inc
ti
onb
etwe
enc
omp
li
anc
ean
dno
w-c
omp
li
anc
e.

 Di
ff
ic
ultt
ose
trul
est
hatc
anc
ove
ral
lsi
tua
tio
nsa
nde
nti
ti
es.

 Po
ssi
bl
etomi
si
nte
rpr
ett
her
ule
s.

 S
amer
ule
sap
plyt
oal
lco
mpa
nie
sre
gar
dle
sso
fth
esi
ze.

 Emp
has
iso
nac
hie
veme
nts-mo
ree
mph
asi
sond
efi
ni
tea
chi
eve
men
tsr
ath
ert
hanun
der
ly
ing

 f
act
orsa
ndc
ont
rol
sys
tems
.Ho
wev
er,
the
rema
ybel
i
ttl
ein
cen
tiv
etoa
chi
evemo
ret
hani
sre
qui
redb
yth
erul
es.

 Compuls
orycompl
iance-Rules
-bas
eda p
proac
hesall
ownoleewa
y.Thek
eyis
sueiswhe
the
rornoty
ouhav
ecompl
ie
dwi t
hthe
rul
es.
Thereisnof
lexib
il
it
yfordi
ff
eren
tcirc
umstan
ces,f
oror
gani
zat
io
nsofv
aryi
ngsi
zeori
ndi
ff
eren
tst
ageso
fde
velop
me nt
.
Reduc
tio
no ff
le
xib
il
ityonthepar
toftheaudi
tor
sandma n
agement
.

 Vi
sib
il
it
yofco
mpl
ianc
e-Itsho
uldi
ntheor
ybeea
sytos
eewhet
hert
her
ehasbee
nc o
mpli
anc
ewi
tht
her
ule
s.Co
mpa
ris
on
be
tweenco
mpani
esshoul
dbest
rai
ght
for
ward
.Eas
ytos
eeth
atthee
nti
tyi
sco
mp l
yi
ng.

 Li
mit
ati
onso
frul
es-En
for
cer
sofar
ule
s-b
ase
dap
pro
ach(
reg
ula
tor
s,a
udi
to
rs)ma
yfi
ndi
tdi
ff
ic
ultt
ode
alwi
thq
ues
ti
ona
ble
s
it
uat
io
nst
hata
ren
otc
ove
reds
uff
ic
ien
tlyi
nth
erul
ebo
ok.

 Cr
imi
nals
anc
ti
ons-Ru
les
-ba
seda
ppr
oac
hest
oco
rpo
rat
ego
ver
nan
cet
endt
obef
oun
dinl
ega
ljur
is
dic
ti
onsa
ndc
ult
uret
hatl
ay
g
rea
temp
has
iso
nob
eyi
ngt
hel
ett
ero
fth
ela
wra
the
rth
ant
hes
pir
it
.Th
eamo
unto
fle
gis
lat
io
nfo
rbus
ine
sse
sint
hes
e

1|
Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

j
uri
sdi
ct
io
nsma
ygi
ver
is
etos
ign
ifi
can
tco
mpl
i
anc
eco
sts
.

 Co
mpa
nie
sdon
oth
avet
hec
hoi
ceo
fig
nor
ingt
her
ule
s.

 Al
lco
mpa
nie
sar
ere
qui
redt
ome
ett
hes
amemi
ni
mums
tan
dar
dso
fco
rpo
rat
ego
ver
nan
ce.

 I
nve
sto
rco
nfi
den
cei
nth
est
ockma
rke
tmi
ghtb
eimp
rov
edi
fal
lth
est
ockma
rke
tco
mpa
nie
sar
ere
qui
redt
oco
mpl
ywi
th
r
eco
gni
zedc
orp
ora
teg
ove
rna
ncer
ule
s.

 Th
esa
mer
ule
smi
ghtn
otb
esui
tab
lef
ore
ver
yco
mpa
ny,
bec
aus
eth
eci
rc
ums
tan
ceso
fea
chc
omp
anya
red
iff
ere
nt.As
yst
emo
f
c
orp
ora
teg
ove
rna
ncei
sto
ori
gi
dift
hes
amer
ule
sar
eap
pli
edt
oal
lco
mpa
nie
s.

 Th
erea
res
omea
spe
ctso
fco
rpo
rat
ego
ver
nan
cet
hatc
ann
otb
ere
gul
ate
dea
sil
y,s
ucha
sne
got
iat
ingt
her
emun
era
tio
nof
d
ire
cto
rs,d
eci
di
ngt
hemo
sts
uit
abl
era
ngeo
fsk
il
lsa
nde
xpe
rie
ncef
ort
heb
oar
dofd
ire
cto
rs,a
nda
sse
ssi
ngt
hep
erf
orma
nceo
f
t
heb
oar
dan
dit
sdi
rec
tor
s.

1
.2. Pr
inc
ipl
es-
Bas
edAp
pro
acht
oCo
rpo
rat
eGo
ver
nanc
e

 Ap
rin
cip
les
-ba
seda
ppr
oac
htoc
orp
ora
teg
ove
rna
ncei
sana
lte
rna
tiv
etoar
ule
s-b
ase
dap
pro
ach
.Iti
sba
sedo
nth
evi
ewt
hat
as
ing
les
eto
frul
esi
sin
app
rop
ria
tef
ore
ver
yco
mpa
ny.Ci
rc
ums
tan
cesa
nds
it
uat
io
nsd
if
ferb
etwe
enc
omp
ani
es.Th
e
c
ir
cums
tan
ceso
fth
esa
mec
omp
anyc
anc
han
geo
vert
ime
.Th
isme
anst
hat
:-t
hemo
sts
uit
abl
eco
rpo
rat
ego
ver
nan
ce
p
rac
ti
cesc
and
if
ferb
etwe
enc
omp
ani
es,
andt
heb
estc
orp
ora
teg
ove
rna
ncep
rac
ti
cesf
orac
omp
anymi
ghtc
han
geo
vert
ime
,
a
sit
sci
rc
ums
tan
cesc
han
ge.

 I
tist
her
efo
rea
rgue
dth
atac
orp
ora
teg
ove
rna
ncec
odes
houl
dbea
ppl
i
edt
oal
lma
jorc
omp
ani
es,b
utt
hisc
odes
houl
d
c
ons
isto
fpr
inc
ipl
es,n
otr
ule
s.Th
epr
inc
ipl
ess
houl
dbea
ppl
i
edb
yal
lco
mpa
nie
s.Gui
del
i
neso
rpr
ovi
si
onss
houl
dbei
ssue
d
wi
tht
hec
ode
,tos
ugg
esth
owt
hep
rin
cip
less
houl
dbea
ppl
i
edi
npr
act
ic
e.Asag
ene
ral
rul
e,c
omp
ani
ess
houl
dbee
xpe
cte
dto
c
omp
lywi
tht
heg
uid
eli
neso
rpr
ovi
si
ons
.Ho
wev
er,t
hewa
yinwh
icht
hep
rin
cip
lesa
rea
ppl
i
edi
npr
act
ic
emi
ghtd
iff
erf
or
s
omec
omp
ani
es,
atl
eas
tfo
rso
meo
fth
eti
me.
Comp
ani
ess
houl
dbea
ll
owe
dtoi
gno
ret
heg
uid
eli
nesi
fth
isi
sap
pro
pri
atef
or
t
hei
rsi
tua
tio
nan
dci
rc
ums
tan
ces
.Wh
enac
omp
anyd
oesn
otc
omp
lywi
tht
heg
uid
eli
neso
rpr
ovi
si
onso
fac
ode
,its
houl
d
r
epo
rtt
hisf
actt
oth
esh
are
hol
der
s,a
nde
xpl
ai
nit
sre
aso
nsf
orn
on-
comp
li
anc
e.

 Th
isa
ppr
oac
hiss
ome
ti
mesc
all
edc
omp
lyo
rex
pla
in.I
tap
pli
esi
nth
eUK,f
ore
xamp
le.Wi
thac
omp
lyo
rex
pla
ina
ppr
oac
h,
s
toc
kma
rke
tco
mpa
nie
ssh
oul
dber
equi
redt
opr
ese
ntac
orp
ora
teg
ove
rna
nces
tat
eme
ntt
oth
eirs
har
eho
lde
rs,
inwh
icht
hey
s
tat
eth
at:t
heya
ppl
yth
epr
inc
ipl
esi
nth
eco
deo
fco
rpo
rat
ego
ver
nan
ce(
thec
odet
hata
ppl
i
est
oco
mpa
nie
sint
hats
toc
k
ma
rke
t),
ande
it
hert
hec
omp
anyh
as:
-co
mpl
i
edwi
tha
llt
hep
rov
isi
onso
rgui
del
i
nesi
nth
eco
def
ora
ppl
yi
ngt
hep
rin
cip
lesi
n
p
rac
ti
ce,
or-e
xpl
ai
nth
eirn
on-
comp
li
anc
ewi
tha
nys
pec
if
icp
rov
isi
ono
rgui
del
i
ne.

1
.2.
1. Cha
rac
ter
ist
ic
s

 Av
oid
sle
gis
lat
ion-I
tav
oid
sth
ene
edf
ori
nfl
exi
bl
ele
gis
lat
io
nth
atc
omp
ani
esh
avet
oco
mpl
ywi
the
vent
houg
hth
e

2|
Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

l
egi
sl
ati
oni
sno
tap
pro
pri
ate
.

 Le
ssc
ost
ly-I
tisl
essb
urd
ens
omei
nte
rmso
fti
mea
nde
xpe
ndi
tur
e.Ap
rin
cip
les
-ba
seda
ppr
oac
hca
nav
oidt
hen
eedf
or
e
xce
ssi
vei
nfo
rma
tio
npr
ovi
si
on,
man
age
men
tan
dre
por
ti
ngc
ost
s,a
ndc
omp
lexmo
nit
ori
nga
nds
upp
orts
truc
tur
es.

 Ap
pro
pri
atef
orc
omp
any-Ap
rin
cip
les
-ba
seda
ppr
oac
hal
l
owsc
omp
ani
est
ode
vel
opt
hei
rowna
ppr
oac
htoc
orp
ora
te
g
ove
rna
ncet
hati
sap
pro
pri
atef
ort
hei
rci
rc
ums
tan
ceswi
thi
nth
eli
mit
sla
idd
ownb
yst
ocke
xch
ang
es.

 F
lex
ibi
l
ity-Ap
rin
cip
les
-ba
seda
ppr
oac
hca
nal
l
owf
ort
ran
sit
io
nal
arr
ang
eme
ntsa
ndun
usua
lci
rc
ums
tan
ces
.

 Emp
has
iso
nex
pla
nat
ions-En
for
ceme
nto
nac
omp
lyo
rex
pla
inb
asi
sme
anst
hatb
usi
nes
sesc
ane
xpl
ai
nwh
yth
ey
h
aved
epa
rte
dfr
omt
hes
pec
if
icp
rov
isi
onsi
fth
eyf
eel
iti
sap
pro
pri
ate
.

 Emp
has
iso
ninv
est
ord
eci
si
ons-Ap
rin
cip
les
-ba
seda
ppr
oac
hac
comp
ani
edb
ydi
scl
osur
ere
qui
reme
ntsp
utst
he
e
mph
asi
soni
nve
sto
rsma
kin
gupt
hei
rownmi
ndsa
boutwh
atb
usi
nes
sest
heya
red
oin
g(a
ndwh
eth
ert
heya
gre
ed
d
epa
rtur
esf
romt
hec
ode
sar
eap
pro
pri
ate
).

 Br
oad
nes
sofp
rinc
ipl
es-Pr
inc
ipl
esma
ybes
obr
oadt
hatt
heya
reo
fve
ryl
i
ttl
eus
easag
uid
etob
estc
orp
ora
te
g
ove
rna
ncep
rac
ti
ce.

 Mi
sre
pre
sent
sco
mpa
nya
tti
tud
es-Co
mme
ntsa
boutb
ox-
ti
cki
nga
rei
nco
rre
ctf
ort
wor
eas
ons
.Fi
rs
tl
y,s
har
eho
lde
rsd
o
n
ota
ppl
yth
ata
ppr
oac
hwh
ena
sse
ssi
nga
cco
unt
s.S
eco
ndl
y,i
tisf
arl
essl
i
kel
yth
atd
isa
ste
rswi
l
lst
ri
kec
omp
ani
eswi
th
a1
00%c
omp
li
anc
ere
cor
dsi
ncet
heya
reun
li
kel
ytob
eco
nte
ntwi
tht
oke
nco
mpl
i
anc
ebutwi
l
lha
ves
etupp
roc
edur
es
t
hatc
ont
ri
but
esi
gni
fi
can
tlyt
oth
eirb
ein
ggo
ver
nedwe
ll
.

 Co
nsi
st
enc
ybe
twe
enc
omp
ani
es-I
nve
sto
rsc
ann
otb
eco
nfi
den
tofc
ons
ist
enc
yofa
ppr
oac
h.Cl
earr
ule
sme
ant
hatt
he
s
ames
tan
dar
dsa
ppl
ytoa
lld
ire
cto
rs.

 Co
nfus
iono
verr
ule
s-Th
erema
ybec
onf
usi
ono
verwh
ati
sco
mpul
sor
yan
dwh
ati
sn'
t
.Al
tho
ughc
ode
sma
yst
atet
hat
t
heya
ren
otp
res
cri
pt
iv
e,t
hei
rad
opt
io
nbyt
hel
oca
lst
ocke
xch
ang
eme
anst
hats
pec
if
icr
eco
mme
nda
tio
nsi
nth
eco
des
e
ffe
cti
vel
ybe
comer
ule
s,wh
ichc
omp
ani
esh
avet
oob
eyi
nor
dert
ore
tai
nth
eirl
i
sti
ng.

 I
nad
equa
tee
xpl
ana
tio
n-S
omec
omp
ani
esma
ype
rce
iveap
rin
cip
les
-ba
seda
ppr
oac
hasn
on-
bi
ndi
nga
ndf
ai
ltoc
omp
ly
wi
tho
utg
ivi
nga
nad
equa
teo
rpe
rha
psa
nye
xpl
ana
tio
n.No
ton
lyd
oest
hisd
emo
nst
rat
eaf
ai
lur
etou
nde
rst
andt
he
p
urp
oseo
fpr
inc
ipl
es-
bas
edc
ode
sbuti
tal
soc
ast
sas
per
si
onso
nth
ein
teg
rit
yoft
hec
omp
ani
es'
dec
isi
on-
mak
ers
.

 I
nve
sto
rmi
sund
ers
tand
ing-A p
rin
cip
les
-ba
seda
ppr
oac
hde
pen
dso
nma
rke
tsun
der
sta
ndi
ngt
hes
eri
ous
nes
sof
n
onc
omp
li
anc
ean
dre
val
ui
ngs
har
esa
ppr
opr
iat
ely
.Ho
wev
ern
on-
spe
cia
li
sts
har
eho
lde
rsma
yno
tin
ter
pre
tth
e
s
ign
ifi
can
ceo
fdi
scl
osur
esc
orr
ect
ly
.

 S
har
eho
lde
rri
ght
s-I
t'
sbe
ens
ugg
est
edt
hatap
rin
cip
les
-ba
seda
ppr
oac
hre
qui
resar
egi
mewh
eres
har
eho
lde
rsh
ave
me
ani
ngf
ulr
igh
tsi
nla
w,s
ucha
sbe
inga
blet
ovo
tei
ndi
vi
dua
ldi
rec
tor
sof
fth
ebo
ard
.

2.
0.De
vel
opme
ntsi
nco
rpo
rat
ego
ver
nanc
e

3|
Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

2.
1.UKCo
rpo
rat
eGo
ver
nanc
eCo
de

2.
1.
1.TheCa
dbur
yre
por
t(1
992)
 Th
eCa
dbur
yco
mmi
tt
eei
nth
eUKwa
sse
tupb
eca
useo
fth
ela
cko
fco
nfi
denc
epe
rce
ive
dinf
ina
nci
alr
epo
rti
nga
ndi
nth
eab
il
it
y
o
faud
ito
rst
opr
ovi
det
hea
ssur
anc
esr
equi
redb
ytheus
erso
ffi
nanc
ials
tat
eme
nts
.Th
ema
ind
if
fi
cul
ti
eswe
rec
ons
ide
redt
obe
i
nth
ere
lat
io
nsh
ipb
etwe
ena
udi
tor
sandb
oar
dso
fdi
rec
tor
s.I
npa
rti
cul
ar,t
hec
omme
rci
alp
res
sur
eso
nbo
thd
ire
cto
rsa
nd
a
udi
to
rsc
aus
edp
res
sur
etob
ebr
oug
htt
obe
aro
naud
ito
rsb
yth
ebo
arda
ndt
hea
udi
to
rso
fte
nca
pit
ula
ted
.Pr
obl
emswe
rea
lso
p
erc
eiv
edi
nth
eab
il
it
yoft
heb
oar
dofd
ire
cto
rst
oco
ntr
olt
hei
ror
gani
zat
ions
.
 Co
rpo
rat
ego
ver
nanc
ere
spo
nsi
bi
li
ti
es-Th
ero
leso
fth
osec
onc
ern
edwi
tht
hef
ina
nci
als
tat
eme
ntsa
red
esc
ri
bedi
nth
eCa
dbur
y
r
epo
rtp
ubl
i
she
din1
992.(
i)Th
edi
rec
tor
sar
ere
spo
nsi
bl
efo
rth
eco
rpo
rat
ego
ver
nan
ceo
fth
eco
mpa
ny.(
ii
)Th
esh
are
hol
der
sar
e
l
i
nke
dtot
hed
ire
cto
rsv
iat
hef
ina
nci
alr
epo
rti
ngs
yst
em.(
ii
i)Th
eaud
ito
rsp
rov
idet
hes
har
eho
lde
rswi
tha
nex
ter
nalo
bje
cti
ve
c
hec
kont
hed
ire
cto
rs’
fi
nan
cia
lst
ate
men
ts.(
iv
)Ot
herc
onc
ern
edus
ers
,pa
rti
cul
arl
yemp
loy
ees(
towh
omt
hed
ire
cto
rso
wes
ome
r
esp
ons
ibi
l
ity
)ar
ein
dir
ect
lya
ddr
ess
edb
yth
efi
nan
cia
lst
ate
men
ts.
 Co
deo
fBe
stPr
act
ic
e-Th
eCo
deo
fBe
stPr
act
ic
ein
clud
edi
nth
eCa
dbur
yre
por
tan
dsub
seq
uen
tlya
men
dedb
yla
terr
epo
rtswa
s
a
ime
datt
hed
ire
cto
rso
fal
lUKp
ubl
i
cco
mpa
nie
s,b
utt
hed
ire
cto
rso
fal
lco
mpa
nie
swe
ree
nco
ura
gedt
ous
eth
eCo
de.
 Aj
oi
nti
ni
ti
ati
veb
etwe
ent
heF
ina
nci
alRe
por
ti
ngCo
unc
il
,th
eac
count
anc
ypr
ofe
ssi
ona
ndt
heLo
ndo
nSt
ockEx
cha
nges
awa
c
odeo
fpr
act
ic
ecr
eat
edt
hata
lll
i
ste
dco
mpa
nie
ssh
oul
dfo
ll
owa
sac
ond
iti
ont
obe
inga
dmi
tt
edt
oth
est
ocke
xch
ang
e.Th
e
c
ommi
tt
eed
eve
lop
edt
he'
comp
lyo
rex
pla
in'
app
roa
cht
oco
rpo
rat
ego
ver
nan
ce.
 Ca
dbur
yma
inr
eco
mme
nda
tio
nswe
rea
sfo
ll
o ;(
ws 1
)Boar
dso
fli
st
edc
omp
ani
ess
houl
dinc
lud
eind
epe
nde
ntno
n-e
xec
uti
ve
d
ire
cto
rs.(
2)Ano
mina
tio
nco
mmi
tt
eec
ons
ist
ingo
fin
dep
end
entn
on-
exe
cut
iv
edi
rec
tor
ssh
oul
dve
tne
wap
poi
ntme
ntst
oth
e
b
oar
d.(
3)S
erv
icec
ont
rac
tso
fex
ecut
iv
edi
rec
tor
ssh
oul
dbel
i
mit
edt
oth
reey
ear
sun
les
sap
pro
vedb
ysh
are
hol
der
s.(
4)A
r
emune
rat
ionc
ommi
tt
eec
ons
ist
ingo
fmo
stl
yno
n-e
xec
uti
ved
ire
cto
rss
houl
dap
pro
vee
xec
uti
ved
ire
cto
rre
mun
era
tio
n.(
5)An
a
udi
tco
mmi
tt
eec
ons
ist
ingo
fmo
stl
yno
n-e
xec
uti
ved
ire
cto
rss
houl
dmo
nit
ort
hef
ina
nce
soft
hec
omp
any
.(6
)Th
ero
leo
f
Cha
irma
nan
dChi
efEx
ecut
ives
houl
dno
tbep
erf
orme
dbyo
nep
ers
ont
oen
sur
eth
ebo
ardi
sse
par
ate
dfr
omt
hed
ayt
oda
y
r
unn
ingo
fth
eco
mpa
ny.

2.
1.
2TheGr
eenb
uryc
ode(
1995)
 I
n1995,t
heGr
eenb
uryc
ommi
tt
eep
ubl
i
she
dac
odewh
iche
sta
bli
she
dpr
inc
ipl
esf
ort
hed
ete
rmi
nat
io
nofd
ire
cto
rs'p
aya
nd
d
eta
il
in
gdi
scl
osur
est
obeg
ive
nint
hea
nnua
lre
por
tsa
nda
cco
unt
s.
 Th
isr
epo
rtwa
sai
meda
tcur
tai
l
ingt
hep
ubl
i
clyun
pop
ula
r'f
atc
at's
ala
rie
sofma
nyd
ire
cto
rs,e
spe
cia
ll
yth
osei
nth
epr
iva
tis
ed
ut
il
it
ie
s.Mo
sto
fth
efi
ndi
ngswe
rei
nco
rpo
rat
edi
ntot
heLi
st
ingr
ule
soft
heS
toc
kEx
cha
ngei
nla
te1
995.
 Re
comme
nda
tio
nso
ftheGr
eenb
uryRe
por
twe
re;(
1)Th
eint
ere
stso
fthes
har
eho
lde
rss
houl
dbec
ons
ide
redb
yth
e
Re
mune
rat
ionCo
mmi
tt
eewh
ens
ett
ingd
ire
cto
rs'
remun
era
tio
n.(
2)S
har
eop
tio
nsf
ord
ire
cto
rss
houl
dbed
isa
ll
owe
dan
dan
nua
l
b
onus
ess
houl
dno
tbep
ens
ion
abl
e.(
3)S
har
eho
lde
rap
pro
vals
houl
dbes
oug
hti
flo
ng-
ter
minc
ent
ive
sar
egi
vent
odi
rec
tor
s.(
4)
No
ti
cep
eri
odsf
ore
xec
uti
ved
ire
cto
rss
houl
dno
tex
cee
don
eye
ar.(
5)Th
eRe
mun
era
tio
nCo
mmi
tt
ees
houl
dpr
oduc
ear
epo
rt
s
tat
ingc
omp
li
anc
eorno
n-c
omp
li
anc
etot
heGr
eenb
uryRe
por
twh
ichi
stob
ein
clud
edi
nth
ean
nua
lre
por
t.

4|
Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

2.
1.
3TheHa
mpe
lre
por
t(1
998)
 Th
eHa
mpe
lco
mmi
tt
eef
ol
lo
wedupi
n1998ma
tte
rsr
ais
edi
nth
eCa
dbur
yan
dGr
een
bur
yre
por
ts,
aimi
ngt
ore
str
ic
tth
ere
gul
ato
ry
b
urd
eno
nco
mpa
nie
san
dsub
sti
tut
ingp
rin
cip
lesf
ord
eta
ilwh
ene
verp
oss
ibl
e.Un
derHa
mpe
l:(
a)Th
eac
coun
tss
houl
dco
nta
ina
s
tat
eme
nto
fho
wth
eco
mpa
nya
ppl
i
est
hec
orp
ora
teg
ove
rna
ncep
rin
cip
les
.(b
)Th
eac
coun
tss
houl
dex
pla
int
hei
rpo
li
ci
es,
i
ncl
udi
nga
nyc
ir
cums
tan
cesj
ust
if
yi
ngd
epa
rtur
efr
omb
estp
rac
ti
ce.
 Th
eHa
mpe
lre
por
tco
mbi
neda
ndi
mpr
ove
dont
hewo
rko
fth
eCa
dbur
yan
dGr
een
bur
yCo
mmi
tt
ees
.InJ
une1
998i
twa
sgi
ven
e
ffe
cta
sac
odeo
fgo
odp
rac
ti
cewh
ent
heLo
ndo
nSt
ockEx
cha
ngee
mbo
die
dit
sre
comme
nda
tio
nsi
ntot
he1
998Co
mbi
nedCo
de.
F
ail
uret
ofo
ll
owt
hec
odec
oul
dre
sul
tinaf
ineo
rde
li
st
ingb
yth
eLo
ndo
nSt
ockEx
cha
nge
.
 Re
comme
nda
tio
nso
ftheHa
mpe
lRe
por
twe
re:(
1)Al
ldi
rec
tor
s,b
othe
xec
uti
vea
ndn
on-
exe
cut
iv
e,s
houl
dowet
hes
amed
uti
es
a
nds
houl
dre
cei
ves
uit
abl
einf
orma
tio
nan
din
str
uct
io
nast
oth
eird
uti
es.(
2)Ex
ecut
iv
edi
rec
tor
smus
tbes
uit
abl
yex
per
ienc
ed
t
ound
ers
tandt
hena
tur
ean
din
ter
est
soft
hei
rco
mpa
ny.(
3)Th
ebo
ards
houl
dco
nsi
sto
fatl
eas
tone
-thi
rdno
n-e
xec
uti
ve
d
ire
cto
rso
fwh
icht
hema
jor
it
yar
ein
dep
end
ent
.(4)Th
ero
leso
fCha
irma
nan
dChi
efEx
ecut
ives
houl
dno
tbep
erf
orme
dbyo
ne
p
ers
on.(
5)No
min
ati
onc
ommi
tt
eess
houl
dbei
nvo
lve
dinr
eco
mme
ndi
ngne
wbo
arda
ppo
int
ment
sandd
ire
cto
rss
houl
dbe
r
eel
ect
eda
tle
aste
ver
ythr
eey
ear
s.(
6)Di
rec
tor
s'r
emun
era
tio
nsh
oul
dbeb
ase
dup
ont
her
eco
mme
nda
tio
nso
far
emun
era
tio
n
c
ommi
tt
eec
ons
ist
inge
nti
rel
yofno
n-e
xec
uti
ved
ire
cto
rs.(
7)Re
mun
era
tio
nsh
oul
dno
tbee
xce
ssi
ve.(
8)S
erv
icec
ont
rac
tso
f
d
ire
cto
rss
houl
dbenol
ong
ert
hant
wel
vemo
nths
.

2.
1.
4.TheTur
nbul
lCo
mmi
tt
eeRe
por
t(1
999)
 Th
isr
epo
rtd
eci
dedt
hatt
heb
oar
dofd
ire
cto
rss
houl
dbemo
rea
cti
vea
ndi
nvo
lve
dini
nte
rna
lco
ntr
olp
roc
edur
esa
ndr
isk
ma
nag
eme
nt.I
npa
rti
cul
ar,t
heb
oar
dsh
oul
dber
esp
ons
ibl
efo
r:(
1)Ev
alua
tings
our
cesa
ndt
ype
sofr
iskt
hatt
hec
omp
anyi
s
f
ace
dwi
th.(
2)Pr
ovi
di
nge
ffe
cti
ves
afe
gua
rdsa
ndi
nte
rna
lco
ntr
olst
oma
nag
e,p
rev
ento
rre
duc
eth
eri
sks
.(3
)En
sur
ingt
he
t
rans
par
enc
yofi
nte
rna
lco
ntr
olsa
ndp
rov
idi
nga
nan
nua
lri
ska
sse
ssme
nt.

2.
1.
5.TheHi
ggsRe
por
t(2003
)
 Th
eHi
ggsr
epo
rti
den
tif
ie
dth
ene
edf
orno
n-e
xec
uti
ved
ire
cto
rst
opl
aya
ninc
rea
sing
lyi
mpo
rta
ntr
olei
nth
erun
nin
gofa
c
omp
any
,an
dth
att
heb
oar
dasawh
oles
houl
dac
cep
tco
ll
ect
iver
esp
ons
ibi
l
ityf
ort
her
esul
tso
fthec
omp
anya
ndi
tsa
cti
ons
.It
r
eco
mme
nde
dth
eus
eoft
heun
ita
ryb
oar
dst
ruc
tur
ein
ste
ado
fot
hers
truc
tur
esc
ommo
ninF
ren
cha
ndGe
rma
nco
rpo
rat
io
ns.
Thi
s
r
epo
rtwa
sth
eUK'
sre
spo
nset
oth
eEn
rond
isa
ste
rint
heUS
A.

2.
1.
6.TheS
mit
hRe
por
t2003
 Th
eSmi
thRe
por
tpr
oduc
edg
uid
eli
nest
ohe
lpa
udi
tco
mmi
tt
eesp
erf
ormt
hei
rro
lee
ffe
cti
vel
yan
dal
soc
ont
ain
ede
sse
nti
al
r
equi
reme
ntst
hata
llc
ommi
tt
eess
houl
dme
et.Th
e'c
omp
lyo
rex
pla
in'p
rin
cip
lea
ppl
i
est
oth
eser
equi
reme
nts
,butt
her
epo
rt
a
lsos
tat
est
hatb
estp
rac
ti
cei
nvo
lve
sgo
ingo
vera
nda
bov
eth
eser
equi
reme
nts
.
2.
1.
7UKc
omb
ine
dco
rpo
rat
ego
ver
nanc
eco
de
 Th
eUKCo
rpo
rat
eGo
ver
nan
ceCo
dei
saLo
ndo
nSt
ockEx
cha
nger
equi
reme
ntf
orl
i
ste
dco
mpa
nie
s.I
tisr
eco
mme
nde
dfo
rot
her
c
omp
ani
es.

5|
Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

 I
tisi
mpo
rta
ntt
ore
cog
niz
eth
atf
ol
lo
win
gth
eCo
mbi
nedCo
dei
sno
tal
ega
lre
qui
reme
nth
owe
ver
,so
mea
rguet
hatt
hec
ode
s
houl
dbema
nda
tor
yfo
ral
lco
mpa
nie
s.Ho
wev
er,t
heLo
ndo
nSt
ockEx
cha
nger
equi
resa
lll
i
ste
dco
mpa
nie
stoi
ncl
udei
nth
eir
a
nnua
lre
por
tsas
tat
eme
nto
fco
mpl
i
anc
eorn
on-
comp
li
anc
ewi
tht
hec
ode
.Al
lot
herc
omp
ani
esa
ree
nco
ura
gedt
ofo
ll
owi
tasa
n
e
xamp
leo
f‘b
estp
rac
ti
ce’
.Co
mpa
nie
sma
yfi
ndp
res
sur
efr
omt
hei
rst
ake
hol
der
sift
heyd
ono
tad
opti
t.
 Pr
inc
ipl
es:S
har
eho
lde
rs-Ofk
eyi
mpo
rta
ncet
oth
esh
are
hol
der
sar
eth
esug
ges
ti
onst
hatt
heUKCo
rpo
rat
eGo
ver
nan
ceCo
de
ma
kesi
nre
spe
cto
fth
ean
nua
lge
ner
alme
eti
ng.TheUKCo
der
equi
rest
hats
epa
rat
ere
sol
uti
onsa
rema
def
ori
dent
if
iab
ly
d
iff
ere
nti
temswhi
chs
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das
sis
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lde
rsi
nun
der
sta
ndi
ngt
hep
rop
osa
lsl
ai
dbe
for
etheme
eti
ng.I
tal
sor
equi
rest
hat
d
ire
cto
rme
mbe
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rio
usi
mpo
rta
ntb
oar
dco
mmi
tt
ees(
suc
hast
her
emun
era
tio
nco
mmi
tt
ee)b
eav
ail
abl
eatAGMst
o
a
nswe
rsha
reho
lde
rs'
que
sti
ons
.Int
erna
lco
ntr
ols-An
oth
eri
mpo
rta
nta
reaf
ors
har
eho
lde
rsi
sth
eemp
has
isp
lac
edo
ndi
rec
tor
s
mo
nit
ori
nga
nda
sse
ssi
ngi
nte
rna
lco
ntr
olsi
ntheb
usi
nes
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egul
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asi
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il
eiti
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uto
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reme
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ire
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rs
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afe
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hei
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esh
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it
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ols
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isa
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ti
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ase
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har
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lde
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ide
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nth
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tor
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e-e
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ti
on-Th
ere
qui
reme
ntso
fth
eco
dea
lsoma
ket
hed
ire
cto
rsmo
re
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cce
ssi
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etot
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itc
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ee-S
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osh
are
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sha
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terc
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eke
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etoo
the
rus
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i
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it
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,wh
ichwi
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itt
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sup
pli
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mpl
oye
es.
 Thep
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ipl
eso
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red
esi
gne
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:en
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lli
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t
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hip
;imp
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i
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mpa
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a
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fth
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and
isc
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etos
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ora
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ove
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nce
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ren
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isf
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it
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sad
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it
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swo
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olun
tar
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omp
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est
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oge
tawa
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anc
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ed.Th
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het
ypeo
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ema
det
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lde
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i
anc
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nfus
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ead
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osh
are
hol
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san
dex
ace
rba
tet
hep
rob
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hec
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str
yi
ngt
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uar
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ain
st.

2.
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ane
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t2002
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ove
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men
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ndt
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rons
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dal
wast
heS
arb
ane
s-Ox
leyAc
t2002.Th
emo
sts
ign
ifi
can
tsc
and
ali
nAme
ric
a

6|
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 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

i
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ove
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ai
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ssi
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eAc
twa
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rea
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sl
ati
ond
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i
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ths
ecur
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ear
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mpl
i
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nsf
orp
ubl
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c
c
omp
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mak
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uth
ori
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rov
isi
ons
.

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arb
ane
s-Ox
leys
hif
tsr
esp
ons
ibi
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rob
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acyt
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d'
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itc
ommi
tt
ee,wh
icht
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y
c
omp
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est
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dep
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mmi
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ane
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ina
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t
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cer
s.

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iti
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ual
i
tyc
ont
rol
,

7|
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 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

i
nde
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ard
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ir
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por
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tat
eme
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ti
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ipl
i
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ms.
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ngs
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ir
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ape
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l
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ermi
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ina
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als
tat
eme
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l
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les
.Th
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eme
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iza
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 No
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ces-Aud
ito
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ree
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ibi
te
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arr
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umb
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cesi
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it,
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ook
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yst
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mpl
eme
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ais
alo
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ces
,ac
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ces
,ma
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eme
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ti
ons
a
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uma
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ves
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eme
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ces
.Pr
ovi
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its
erv
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siso
nly
a
ll
owe
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tht
hep
rio
rap
pro
val
oft
hea
udi
tco
mmi
tt
ee.
 Qua
li
tyc
ont
rolp
roc
edur
es-Th
eres
houl
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tio
nofl
eado
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vie
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itp
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ner
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eryf
ivey
ear
san
dot
her
p
roc
edur
ess
ucha
sin
dep
end
enc
ere
qui
reme
nts
,co
nsul
tat
io
n,s
upe
rvi
si
on,p
rof
ess
ion
ald
eve
lop
men
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nte
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li
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ew
a
nde
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geme
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pta
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tio
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ito
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nda
udi
tco
mmi
tt
ee-Aud
ito
rss
houl
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scus
scr
it
ic
ala
cco
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oli
ci
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oss
ibl
eal
ter
nat
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etr
eat
men
ts,t
he
ma
nag
eme
ntl
ett
era
ndun
adj
ust
edd
iff
ere
nce
swi
tht
hea
udi
tco
mmi
tt
ee.
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itc
ommi
tt
ees-Aud
itc
ommi
tt
eess
houl
dbee
sta
bli
she
dbya
lll
i
ste
dco
mpa
nie
s.Al
lme
mbe
rso
faud
itc
ommi
tt
eess
houl
d
b
ein
dep
end
enta
nds
houl
dth
ere
for
eno
tac
cep
tan
yco
nsul
ti
ngo
rad
vis
oryf
eef
romt
hec
omp
anyo
rbea
ffi
l
iat
edt
oit
.Atl
eas
t
o
neme
mbe
rsho
uldb
eaf
ina
nci
ale
xpe
rt.Au
ditc
ommi
tt
eess
houl
dber
esp
ons
ibl
efo
rthea
ppo
int
ment
,co
mpe
nsa
tio
nand
o
ver
sig
hto
faud
ito
rs.Aud
itc
ommi
tt
eess
hou
lde
sta
bli
shme
cha
nis
msf
ord
eal
i
ngwi
thc
omp
lai
ntsa
bouta
cco
unt
ing
,in
ter
nal
c
ont
rol
san
daud
it.
 Co
rpo
rat
ere
spo
nsi
bi
li
ty-Th
ech
iefe
xec
uti
veo
ffi
cera
ndc
hie
ffi
nan
ceo
ffi
cers
houl
dce
rti
fyt
hea
ppr
opr
iat
ene
sso
fth
e
f
ina
nci
als
tat
eme
ntsa
ndt
hatt
hos
efi
nan
cia
lst
ate
men
tsf
ai
rl
ypr
ese
ntt
heo
per
ati
onsa
ndf
ina
nci
alc
ond
iti
ono
fth
eis
sue
r.I
f
t
hec
omp
anyh
ast
opr
epa
rear
est
ate
men
tofa
cco
unt
sduet
oma
ter
ialn
on-
comp
li
anc
ewi
ths
tan
dar
ds,t
hec
hie
ffi
nan
ce
o
ffi
cera
ndc
hie
fex
ecut
iv
eof
fi
cers
houl
dfo
rfe
itt
hei
rbo
nus
es.
 Of
fba
lanc
eshe
ett
rans
act
ions-Th
eres
houl
dbea
ppr
opr
iat
edi
scl
osur
eofma
ter
ialo
ff-
bal
anc
esh
eett
ran
sac
ti
onsa
ndo
the
r
r
ela
tio
nsh
ips(
tr
ans
act
io
nst
hata
ren
oti
ncl
ude
dint
hea
cco
unt
sbutt
hati
mpa
ctup
onf
ina
nci
alc
ond
iti
ons
,re
sul
ts
,li
qui
di
tyo
r
c
api
tal
res
our
ces
).
 I
nte
rna
lco
ntr
olr
epo
rti
ng(
thes
ect
ion404r
equi
reme
nt)-S
404o
fth
eAc
tst
ate
sth
ata
nnua
lre
por
tss
houl
dco
nta
ini
nte
rna
l
c
ont
rolr
epo
rtst
hats
tat
ether
esp
ons
ibi
l
ityo
fma
nag
eme
ntf
ore
sta
bli
shi
nga
ndma
int
aini
nga
deq
uat
eint
erna
lco
ntr
olo
ver
f
ina
nci
alr
epo
rti
ng.An
nua
lre
por
tss
houl
dco
nta
ina
nas
ses
sme
nto
fthee
ffe
cti
vene
sso
fthei
nte
rna
lco
ntr
olo
verf
ina
nci
al
r
epo
rti
ng,a
ndas
tat
eme
nti
den
tif
yi
ngt
hef
rame
wor
kus
edb
yma
nag
eme
ntt
oev
alua
tet
hee
ffe
cti
ven
esso
fth
eco
mpa
ny'
s
i
nte
rna
lco
ntr
olo
verf
ina
nci
alr
epo
rti
ng.Ex
ter
nala
udi
tor
ssho
uldr
epo
rto
nthi
sas
ses
sme
nt,h
avi
ngc
arr
iedo
uti
nde
pen
den
t
t
est
ingo
fth
eco
ntr
ols
yst
em.
Toc
arr
youtt
hei
rre
vie
wef
fec
ti
vel
y,ma
nag
eme
nti
sli
kel
ytoh
avet
ore
lyo
nin
ter
nala
udi
two
rk
o
nth
eco
ntr
ols
yst
ems
.Int
erna
laud
ito
rs'
wor
kwo
uldi
ncl
ude
:id
ent
if
yi
ngc
ont
rol
sata
nen
tit
yan
dop
era
tio
nal
lev
el,
rev
iewi
ng

8|
Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

t
hec
omp
let
ene
sso
fdo
cume
nta
tio
n,t
est
ingc
ont
rol
s,a
dvi
si
ngo
nth
eco
nte
ntso
fth
est
ate
men
tofe
ffe
cti
ven
esso
fth
ein
ter
nal
c
ont
rol
sys
tema
ndt
hed
isc
los
ureo
fma
ter
ial
wea
kne
sse
s,Co
mpa
nie
ssh
oul
dal
sor
epo
rtwh
eth
ert
heyh
avea
dop
tedac
odeo
f
c
ond
uctf
ors
eni
orf
ina
nci
alo
ffi
cer
san
dth
eco
nte
nto
fth
atc
ode
.
 Whi
st
leb
lowi
ngp
rov
isi
ons-Emp
loy
eeso
fli
st
edc
omp
ani
esa
nda
udi
to
rswi
l
lbeg
ran
tedwh
ist
leb
lowe
rpr
ote
cti
ona
gai
nstt
hei
r
e
mpl
oye
rsi
fth
eyd
isc
los
epr
iva
tee
mpl
oye
rin
for
mat
io
ntop
art
ie
sin
vol
vedi
naf
raudc
lai
m.

2.
3.S
out
hAf
ri
caMa
jorg
ove
rna
ncec
ode
s
 S
out
hAf
ri
ca'
sma
jorc
ont
ri
but
io
ntot
hec
orp
ora
teg
ove
rna
nced
eba
teh
asb
eent
heKi
ngr
epo
rt,f
ir
stp
ubl
i
she
din1
994a
nd
up
dat
edi
n2002a
nd2009t
ota
kea
cco
unto
fde
vel
opme
ntsi
nSo
uthAf
ri
caa
nde
lse
whe
rei
nth
ewo
rld
.
 Th
eKi
ngr
epo
rtd
iff
ersi
nemp
has
isf
romo
the
rgui
dan
ceb
yad
voc
ati
nga
nin
teg
rat
eda
ppr
oac
htoc
orp
ora
teg
ove
rna
ncei
nth
e
i
nte
res
tofawi
der
ang
eofs
tak
eho
lde
rs– e
mbr
aci
ngt
hes
oci
al
,en
vir
onme
nta
lan
dec
ono
mica
spe
ctso
fac
omp
any
's
a
cti
vi
ti
es.Th
ere
por
ten
cour
age
sac
ti
vee
nga
geme
ntb
yco
mpa
nie
s,s
har
eho
lde
rs,b
usi
nes
san
dth
efi
nan
cia
lpr
essa
ndr
eli
es
h
eav
il
yond
isc
los
urea
sar
egul
ato
ryme
asur
e.

2.
4.S
ing
apo
reCo
deo
fCo
rpo
rat
eGo
ver
nanc
e
 Th
eSi
nga
por
eCo
de(
pub
li
she
d2001
,re
vis
ed2005,wi
thc
ons
ult
ati
onso
nfur
the
rre
vis
ion
sin201
1)o
fCo
rpo
rat
eGo
ver
nan
ce
t
ake
sas
imi
l
ara
ppr
oac
htot
heUKCo
rpo
rat
eGo
ver
nan
ceCo
dewi
tht
hee
mph
asi
sbe
ingo
nco
mpa
nie
sgi
vi
ngad
eta
il
ed
d
esc
ri
pt
io
noft
hei
rgo
ver
nan
cep
rac
ti
cesa
nde
xpl
ai
ni
nga
nyd
evi
ati
onf
romt
heCo
de.S
omeg
uid
eli
nes
,pa
rti
cul
arl
yond
ire
cto
rs'
r
emun
era
tio
n,g
obe
yon
dwh
ati
sinUKg
uid
anc
e.Re
vis
ion
stot
heCo
dei
n2005r
efl
ect
edr
ece
ntc
onc
ern
s.Th
eyi
ncl
ude
d
e
xpa
ndi
ngt
her
oleo
fth
eaud
itc
ommi
tt
ee,
req
uir
ingc
omp
ani
est
oha
vep
roc
edur
esi
npl
acef
orwh
ist
le-
bl
owi
nga
ndt
hes
epa
rat
io
n
o
fsub
sta
nti
vemo
ti
onsi
nge
ner
alme
eti
ngs
.

2.
5.Or
gani
zat
ionf
orEc
ono
micCo
ope
rat
iona
ndDe
vel
opme
nt(
OECD)
 OECDi
nco
nsul
tat
io
nwi
thme
mbe
rco
unt
ri
esd
eve
lop
edas
eto
fpr
inc
ipl
eso
fco
rpo
rat
ego
ver
nanc
eth
atc
oun
tri
esa
ndc
omp
ani
es
s
houl
dwo
rkt
owa
rdsa
chi
evi
ng.
 Th
eOECDh
ass
tat
edt
hati
tsi
nte
res
tinc
orp
ora
teg
ove
rna
ncea
ris
esf
romi
tsc
onc
ernf
org
lob
ali
nve
stme
nt.
Cor
por
ate
g
ove
rna
ncea
rra
nge
men
tss
houl
dbec
red
ibl
ean
dsh
oul
dbeun
der
sto
oda
cro
ssn
ati
ona
lbo
rde
rs.
Hav
ingac
ommo
nse
tof
a
cce
pte
dpr
inc
ipl
esi
sas
tept
owa
rdsa
chi
evi
ngt
hisa
im.
 Th
eOECDd
eve
lop
edi
tsPr
inc
ipl
eso
fCo
rpo
rat
eGo
ver
nan
cei
n1998a
ndi
ssue
dar
evi
sedv
ers
ioni
nAp
ril
2004.
The
yar
eno
n-
b
ind
ingp
rin
cip
les
,in
ten
dedt
oas
sis
tgo
ver
nme
ntsi
nth
eire
ffo
rtst
oev
alua
tea
ndi
mpr
ovet
hel
ega
l,i
nst
it
uti
ona
lan
dre
gul
ato
ry
f
rame
wor
kfo
rco
rpo
rat
ego
ver
nan
cei
nth
eirc
oun
tri
es.
 Th
eya
rea
lsoi
nte
nde
dtop
rov
ideg
uid
anc
etos
toc
kex
cha
nge
s,i
nve
sto
rsa
ndc
omp
ani
es.
Thef
ocusi
sons
toc
kex
cha
ngel
i
ste
d
c
omp
ani
es,
butma
nyo
fth
epr
inc
ipl
esc
ana
lsoa
ppl
ytop
riv
atec
omp
ani
esa
nds
tat
e-o
wne
dor
gan
iza
tio
ns.
 Th
eOECDp
rin
cip
lesd
eal
mai
nl
ywi
thg
ove
rna
ncep
rob
lemst
hatr
esul
tfr
omt
hes
epa
rat
iono
fowne
rshi
pandma
nag
eme
nto
fa
c
omp
any
.Is
sue
sofe
thi
cal
con
cer
nan
den
vir
onme
nta
lis
sue
sar
eal
sor
ele
van
t,a
lth
oug
hno
tce
ntr
alt
oth
epr
obl
emso
f
g
ove
rna
nce
.
2.
5.
1.TheOECDp
rinc
ipl
es

9|
Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

Th
eOECDp
rin
cip
lesa
reg
roup
edi
ntof
iv
ebr
oada
rea
s:
(
a)Ther
ight
sofs
har
eho
lde
rs
 S
har
eho
lde
rss
houl
dha
vet
her
igh
ttop
art
ic
ipa
tea
ndv
otei
nge
ner
alme
eti
ngso
fth
eco
mpa
ny,
ele
cta
ndr
emo
veme
mbe
rso
f
t
heb
oar
dan
dob
tai
nre
lev
anta
ndma
ter
iali
nfo
rma
tio
nonat
ime
lyb
asi
s.Ca
pit
alma
rke
tsf
orc
orp
ora
tec
ont
rol
sho
uldf
unc
ti
on
i
nane
ffi
ci
enta
ndt
ime
lyma
nne
r.
(
b)Thee
qui
tab
let
rea
tme
nto
fsha
reho
lde
rs
 Al
lsh
are
hol
der
soft
hes
amec
las
sofs
har
ess
houl
dbet
rea
tede
qua
ll
y,i
ncl
udi
ngmi
nor
it
ysha
reho
lde
rsa
ndo
ver
sea
s
s
har
eho
lde
rs.
Imp
edi
ment
stoc
ros
s-b
ord
ers
har
eho
ldi
ngss
houl
dbee
li
mina
ted
.
(
c)Ther
oleo
fst
ake
hol
der
s
 Ri
ght
sofs
tak
eho
lde
rss
houl
dbep
rot
ect
ed.
All
sta
keh
old
erss
houl
dha
vea
cce
sst
ore
lev
anti
nfo
rma
tio
nonar
egu
lara
ndt
ime
ly
b
asi
s.Pe
rfo
rma
nce
-enha
nci
ngme
cha
nis
msf
ore
mpl
oye
epa
rti
ci
pat
io
nsh
oul
dbep
ermi
tt
edt
ode
vel
op.
Sta
keh
old
ers
,in
clud
ing
e
mpl
oye
es,
sho
uldb
eab
let
ofr
eel
yco
mmuni
cat
ethe
irc
onc
ernsa
bouti
l
leg
alo
run
eth
ica
lre
lat
io
nsh
ipst
oth
ebo
ard
.
(
d)Di
scl
osur
eandt
rans
par
enc
y
 Ti
mel
yanda
ccur
ated
isc
los
uremus
tbema
deo
fal
lma
ter
ial
mat
ter
sre
gar
din
gth
eco
mpa
ny,
inc
lud
ingt
hef
ina
nci
als
it
uat
io
n,
f
ore
see
abl
eri
skf
act
ors
,is
sue
sre
gar
din
gemp
loy
eesa
ndo
the
rst
ake
hol
der
san
dgo
ver
nan
ces
truc
tur
esa
ndp
oli
ci
es.
The
c
omp
any
'sa
ppr
oac
htod
isc
los
ures
houl
dpr
omo
tet
hep
rov
isi
ono
fan
aly
siso
rad
vic
eth
ati
sre
lev
antt
ode
cis
ion
sbyi
nve
sto
rs.
(
e)Ther
esp
ons
ibi
l
iti
eso
ftheb
oar
d
 Th
ebo
ardi
sre
spo
nsi
bl
efo
rth
est
rat
egi
cgui
danc
eoft
hec
omp
anya
ndf
ort
hee
ffe
cti
vemo
nit
ori
ngo
fma
nag
eme
nt.
Boa
rd
me
mbe
rss
houl
dac
tonaf
ull
yin
for
medb
asi
s,i
ngo
odf
ai
th,
wit
hdued
il
ig
enc
ean
dca
rea
ndi
nth
ebe
sti
nte
res
tso
fthec
omp
any
a
ndi
tss
har
eho
lde
rs.

2.
6.I
nte
rna
tio
nalCo
rpo
rat
eGo
ver
nanc
eNe
two
rk(
ICGN)
 Th
eIn
ter
nat
io
nal
Cor
por
ateGo
ver
nan
ceNe
two
rk(
ICGN)i
ssue
dar
epo
rt(
pub
li
she
din2005,
rev
ise
din2009)a
imi
ngt
oen
han
ce
t
heg
uid
anc
epr
oduc
edb
yth
eOECD.
Thep
urp
osei
stop
rov
idep
rac
ti
calg
uid
anc
efo
rbo
ard
stome
ete
xpe
cta
tio
nss
oth
att
heyc
an
o
per
atee
ffi
ci
ent
lya
ndc
omp
etef
ors
car
cec
api
tale
ffe
cti
vel
y.
 Th
eICGNb
eli
eve
sth
atc
omp
ani
eswi
l
lon
lya
chi
evev
aluei
nth
elo
nge
r-t
ermi
fth
eyma
nag
eef
fec
ti
vel
yth
eirr
ela
tio
nshi
pswi
th
s
tak
eho
lde
rss
ucha
semp
loy
ees
,cus
tome
rs,
loc
alc
ommun
iti
esa
ndt
hee
nvi
ron
men
tasawh
ole
.

 TheI
CGNg
uid
anc
eemp
has
ize
sthef
oll
owi
ngp
oint
sinp
art
ic
ula
r:
(
a)S
ust
aina
blev
alue
 Th
eob
jec
ti
veso
fco
mpa
nie
ssh
oul
dbet
oge
ner
ates
ust
aina
bles
har
eho
lde
rva
lueo
vert
hel
ong
-te
rm.
Thi
sme
anst
hat
c
omp
ani
esh
avet
oma
nag
eef
fec
ti
vel
yth
ego
ver
nan
ce,
soc
ial
ande
nvi
ron
men
tal
asp
ect
soft
hea
cti
vi
ti
esa
swe
lla
sth
efi
nan
cia
l.
(
b)Bo
ard
 Th
est
ruc
tur
eofb
oar
dswi
l
lde
pen
donna
tio
nalmo
del
s.Bo
ard
ssh
oul
dber
esp
ons
ibl
efo
rgui
di
ngc
orp
ora
tes
tra
teg
y,mo
nit
ori
ng
p
erf
orma
ncea
ndt
hee
ffe
cti
ven
esso
fco
rpo
rat
ego
ver
nan
cea
rra
nge
men
ts,
dea
li
ngwi
ths
ucc
ess
ioni
ssue
s,a
li
gni
ngr
emun
era
tio
n
wi
tht
hec
omp
any
'si
nte
res
ts,
ens
uri
ngt
hei
nte
gri
tyo
fsy
ste
msa
ndo
ver
see
ingd
isc
los
ure
.
 Bo
ard
sne
edt
oge
ner
atee
ffe
cti
ved
eba
tea
ndd
isc
uss
iona
boutc
urr
ento
per
ati
ons
,po
ten
tia
lri
sksa
ndp
rop
ose
dde
vel
opme
nts
.

1
0|Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

 Di
rec
tor
ssh
oul
dha
vea
ppr
opr
iat
esk
il
ls
,co
mpe
tenc
e,k
nowl
edg
eande
xpe
rie
nce
,an
dad
ive
rsi
tyo
fpe
rsp
ect
iv
es.
The
ysh
oul
d
d
emo
nst
rat
eind
epe
nde
ntj
udg
eme
nta
ndf
ulf
ilt
hei
rfi
duc
iar
ydut
iest
osh
are
hol
der
san
dth
eco
mpa
ny.
All
dir
ect
orsn
eedt
o
a
ll
oca
tes
uff
ic
ientt
imet
oth
eco
mpa
ny.
 Th
eys
houl
dha
vea
ppr
opr
iat
ekno
wle
dgeo
fthec
omp
anya
nda
cce
sst
oit
sop
era
tio
nsa
nds
taf
f.
 Di
rec
tor
ssh
oul
dber
e-e
lec
teda
tle
asto
ncee
ver
ythr
eey
ear
s.
 Th
ebo
ard
'sc
hai
rsh
oul
dno
tbet
hec
urr
ento
rfo
rme
rCh
iefEx
ecut
iv
eOf
fi
cer
.Co
rpo
rat
io
nss
houl
des
tab
li
sha
udi
t,c
omp
ens
ati
on
a
ndno
mina
tio
n/g
ove
rna
ncec
ommi
tt
ees
.
 Th
eres
houl
dbeaf
orma
lpr
oce
ssf
ore
val
uat
ingt
hewo
rko
ftheb
oar
dan
dind
ivi
dua
ldi
rec
tor
s.
(
c)Co
rpo
rat
ecul
tur
e
 Th
ebo
ards
houl
dpr
omo
tea
net
hic
alc
orp
ora
tec
ult
ure
,wi
thaf
ocuso
nint
egr
it
y.
 Co
mpa
nie
ssh
oul
dta
kes
tep
stoe
nsur
eth
ate
thi
cal
sta
nda
rdsa
rea
dhe
redt
o,i
ncl
udi
ngd
eve
lop
inga
nor
gani
sat
ion-
wid
eco
deo
f
e
thi
cs.
 Ar
easc
ode
ssh
oul
dco
veri
ncl
udeb
rib
erya
ndc
orr
upt
ion
,emp
loy
ees
har
ede
ali
nga
ndc
omp
li
anc
ewi
thl
aws
.
 Co
mpa
nie
ssh
oul
dha
vewhi
st
leb
lowi
ngc
han
nel
sinp
lac
efo
remp
loy
ees
,sup
pli
erso
rst
ake
hol
der
stor
ais
eis
sue
sofn
on-
c
omp
li
anc
e.
(
d)Ri
skma
nag
eme
nt
 Co
mpa
nie
sne
edt
ota
ker
isk
sbuts
houl
dal
soh
avep
rop
err
is
kma
nag
eme
ntp
roc
edur
esi
npl
ace
.
 Th
ebo
ardmus
ten
sur
eth
ate
ffe
cti
vea
ndd
yna
micp
roc
ess
esa
rei
npl
acef
ora
nal
yzi
nga
ndma
nag
ingr
isk
s.I
tsh
oul
den
sur
eth
at
t
hec
omp
any
'sr
is
k-b
ear
ingc
apa
cit
yan
dth
eto
ler
anc
ele
vel
sfo
rke
yri
sksme
ant
hatt
hec
omp
anyd
oesn
ote
xce
eda
nap
pro
pri
ate
r
iska
ppe
tit
e.Bo
ard
ssh
oul
ddi
scl
oses
uff
ic
ien
tin
for
mat
io
nab
outr
is
kma
nag
eme
ntt
ore
ass
ures
har
eho
lde
rs.

(
e)Re
mune
rat
ion
 S
eni
orma
nag
ers
're
mun
era
tio
nsh
oul
dbea
li
gne
dwi
thv
alue
-cr
eat
iond
riv
erso
vera
nap
pro
pri
atet
imep
eri
od.
 Pa
yst
ruc
tur
ess
houl
dal
i
gnma
nag
era
nds
har
eho
lde
rint
ere
sts
,re
inf
orc
eco
rpo
rat
ecul
tur
ean
dno
tre
war
dthet
aki
ngo
f
i
nap
pro
pri
ater
isk
s.
 Co
mpa
nie
ssh
oul
dcl
ear
lyd
isc
los
ere
mune
rat
ionp
oli
ci
esa
nds
truc
tur
es,
inp
art
ic
ula
rpe
rfo
rma
nceme
tri
cs.
Dis
clo
sur
esh
oul
d
a
lsoi
ncl
udej
ust
if
ic
ati
ono
fan
nua
lawa
rdsi
nth
eco
nte
xto
fan
nua
lpe
rfo
rma
nce
.Sh
are
hol
der
ssh
oul
dbea
blet
ovo
tea
nnu
all
yon
r
emun
era
tio
npa
cka
gesa
ndp
oli
ci
es.

(
f)Aud
it
 Ar
obus
tan
din
dep
end
enta
nnua
laud
iti
sane
sse
nti
alp
arto
fac
omp
any
'sc
hec
ksa
ndb
ala
nce
s.I
tss
cop
esh
oul
dbep
res
cri
bedb
y
l
aw,
butt
hea
udi
tco
mmi
tt
ees
houl
dal
soe
nsur
eth
ati
tiss
uff
ic
ientf
ort
hec
omp
any
'sp
urp
ose
s.S
har
eho
lde
rss
houl
dha
vet
he
r
ightt
oex
pandt
hes
cop
eoft
hea
udi
t.
 Co
mpa
nie
ssh
oul
des
tab
li
sha
nef
fec
ti
vei
nte
rna
laud
itf
unc
ti
ono
rex
pla
inwh
yth
eyh
aven
otd
ones
o.Th
eaud
itc
ommi
tt
ee
s
houl
dov
ers
eet
hec
omp
any
'sr
ela
tio
nshi
pwi
tht
hee
xte
rna
laud
ito
r.
(
g)Di
scl
osur
eandt
rans
par
enc
y
 Co
mpa
nie
ssh
oul
dop
enl
yco
mmuni
cat
eth
eira
ims
,ch
all
eng
es,
ach
iev
eme
ntsa
ndf
ai
lur
eso
nat
ime
lyb
asi
s,a
ffi
rmi
nga
nnua
ll
y

1
1|Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

t
hea
ccur
acyo
ffi
nan
cia
lac
coun
ts.
 Re
por
ti
ngo
fre
lev
anta
ndma
ter
ialno
n-f
ina
nci
ali
nfo
rma
tio
nisa
nes
sen
tia
lpa
rto
fdi
scl
osur
e.
 Co
mpa
nie
ssh
oul
dal
sod
isc
los
eap
pro
pri
ated
ataa
boutma
jors
har
eho
lde
rsa
ndr
ela
tio
nsh
ipswi
thi
nth
eco
rpo
rat
egr
oup
.
(
h)S
har
eho
lde
rs
 Co
mpa
nie
ssh
oul
dac
ttop
rot
ects
har
eho
lde
rs'
rig
htst
ovo
te.
Div
erg
enc
efr
oms
har
eho
lde
rsh
avi
ngo
nev
otef
ore
achs
har
eth
ey
o
wns
houl
dbej
ust
if
ie
d.S
har
eho
lde
rss
houl
dbea
blet
ovo
teo
nre
mov
ingi
ndi
vi
dua
ldi
rec
tor
san
daud
ito
rs.
 Ma
jorc
han
gesa
ffe
cti
ngt
hee
qui
ty
,ec
ono
mici
nte
res
tso
rsha
reo
wne
rshi
pri
ght
sofe
xis
ti
ngs
har
eho
lde
rss
houl
dno
tbema
de
wi
tho
utp
rio
rsh
are
hol
dera
ppr
ova
l.
 I
nst
it
uti
ona
lsh
are
hol
der
ssh
oul
dbea
blet
odi
scha
rget
hei
rfi
duc
iar
ydut
iest
ovo
te.
The
ysh
oul
dbea
blet
oco
nsul
twi
th
ma
nag
eme
nt.
 S
har
eho
lde
rss
houl
dbea
blet
ota
kea
cti
ona
gai
nsti
neq
uit
abl
etr
eat
ment
.

(
i)S
har
eho
lde
rre
spo
nsi
bi
li
ti
es
 S
har
eho
lde
rss
houl
dac
tinar
esp
ons
ibl
ewa
yth
ati
sal
i
gne
dwi
tht
heo
bje
cti
veo
flo
ng-
ter
mva
luec
rea
tio
n.I
nst
it
uti
ona
l
s
har
eho
lde
rss
houl
dre
cog
niz
ethe
irr
esp
ons
ibi
l
iti
est
obe
nef
ic
iar
ies
,sa
ver
san
dpe
nsi
one
rs.
The
ysh
oul
dta
kea
cco
unto
f
g
ove
rna
ncer
is
kfa
cto
rsa
ndt
her
is
kin
esso
fac
omp
any
'sb
usi
nes
smo
del
.
 S
har
eho
lde
rss
houl
dac
ti
vel
yvo
tei
nac
ons
ide
redma
nne
ratg
ene
ral
mee
ti
ngs
.In
sti
tut
io
nal
sha
reh
old
erss
houl
dpub
li
cl
ydi
scl
ose
t
hei
rvo
tingp
oli
ci
esa
ndp
rac
ti
ces
.

2.
6.
1.S
igni
fi
canc
eofi
nte
rna
tio
nalc
ode
s
 Co
dess
ucha
sth
eOECDc
odeh
aveb
eend
eve
lop
edf
romb
estp
rac
ti
cei
nan
umb
ero
fjur
is
dic
ti
ons
.Ass
uch
,th
eyc
anb
ese
ena
s
r
epr
ese
nti
nga
nint
erna
tio
nalc
ons
ens
us.
The
yst
res
sgl
oba
lis
sue
sth
ata
rei
mpo
rta
ntt
oco
mpa
nie
sop
era
tin
ginan
umb
ero
f
j
uri
sdi
ct
io
ns.
 Th
eOECDc
odef
ore
xamp
lee
mph
asi
zest
hei
mpo
rta
nceo
fel
i
mina
tingi
mpe
dime
ntst
ocr
oss
-bo
rde
rsha
reho
ldi
ngsa
ndt
rea
ting
o
ver
sea
ssha
reho
lde
rsf
air
ly.
 Al
tho
ught
heOECDc
odei
sno
n-b
ind
ing
,it
spr
inc
ipl
esh
aveb
eeni
nco
rpo
rat
edi
nton
ati
ona
lgui
dan
ceb
yan
umb
ero
fco
unt
ri
es
i
ncl
udi
ngGr
eec
ean
dCh
ina
.Th
eOECDp
rin
cip
lesh
avea
lsob
eenus
edb
yor
gan
iza
tio
nss
ucha
sth
eWo
rldBa
nka
sab
asi
sfo
r
a
sse
ssi
ngt
hec
orp
ora
teg
ove
rna
ncef
rame
wor
ksa
ndp
rac
ti
cesi
nin
div
idua
lco
unt
ri
es.
The
sea
sse
ssme
ntsa
reus
edt
ode
ter
min
e
t
hel
eve
lofp
oli
cyd
ial
oguewi
th,
andt
ech
nic
ala
ssi
st
anc
egi
vent
o,t
hes
eco
unt
ri
es.
 Th
efa
ctt
hatt
hel
oca
lco
deso
fdi
ff
ere
ntc
oun
tri
esa
reb
ase
dont
hes
amei
nte
rna
tio
nal
cod
eme
anst
hatc
omp
li
anc
eco
stsf
or
c
omp
ani
eswh
oar
eop
era
tingi
nma
nyj
uri
sdi
ct
ionswi
l
lber
educ
ed.
 I
tal
sog
ive
sin
ves
tor
sso
mec
onf
ide
ncea
boutt
hea
ppl
i
cat
io
nofg
ove
rna
ncer
ule
s.
 Th
ede
vel
opme
nto
fin
ter
nat
io
nal
cod
ess
houl
dal
sob
ese
eni
nth
eco
nte
xto
fth
ede
vel
opme
nto
fro
bus
tfi
nanc
ialr
epo
rti
ngr
ule
s,
s
inc
ein
ves
tor
s'c
onc
ern
swi
thun
rel
i
abl
eac
coun
tin
gin
for
mat
io
nha
sme
antt
hatt
heyh
aveq
ues
ti
one
dco
rpo
rat
ego
ver
nan
ce
a
rra
nge
men
ts.
Dev
elo
pme
ntsi
nin
ter
nat
io
nal
acc
oun
tin
gst
and
ard
sai
mtop
romo
teg
rea
teri
nte
rna
tio
nalha
rmo
nyi
nac
count
ing
p
rac
ti
ce,
andi
nte
rna
tio
nal
con
ver
gen
ceo
ngo
ver
nan
cei
sco
nsi
st
entwi
tht
his
.

1
2|Page
 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

2.
6.
2.Li
mit
ati
onso
fint
erna
tio
nalc
ode
s
 I
nte
rna
tio
nal
pri
nci
pl
esr
epr
ese
ntal
owe
stc
ommo
nde
nomi
nat
oro
fge
ner
al,
fai
rl
ybl
and
,pr
inc
ipl
es.
 An
yat
temp
ttos
tre
ngt
hent
hep
rin
cip
leswi
l
lbee
xtr
eme
lyd
if
fi
cul
tbe
caus
eofg
lob
ald
iff
ere
nce
sinl
ega
lst
ruc
tur
es,
fi
nan
cia
l
s
yst
ems
,st
ruc
tur
eso
fco
rpo
rat
eown
ers
hip
,cul
tur
ean
dec
ono
micf
act
ors
.
 Asi
nte
rna
tio
nal
gui
dan
ceh
ast
obeb
ase
donb
estp
rac
ti
cei
nan
umb
ero
fre
gime
s,d
eve
lop
men
twi
l
lal
way
sla
gbe
hin
dch
ang
es
i
nth
emo
sta
dva
nce
dre
gime
s.
 Th
eco
desh
avenol
egi
sl
ati
vep
owe
r.
 Th
eco
stso
ffo
ll
owi
ngav
erys
truc
tur
edi
nte
rna
tio
nal
reg
ime(
suc
haso
neb
ase
donS
arb
ane
s-Ox
ley
)ma
ybev
eryb
urd
ens
ome
f
orc
omp
ani
esb
ase
dinl
essd
eve
lop
edc
ount
ri
es,
whoa
ren
oto
per
ati
ngwo
rld
wid
e.

2.
7.Co
ntr
ibut
iono
fco
rpo
rat
ego
ver
nanc
eco
des
 Th
ere
por
tsh
avehi
ghl
i
ght
edt
hec
ont
ri
but
ionsg
oodc
orp
ora
teg
ove
rna
ncec
anma
ket
oco
mpa
nie
s.
 Th
eco
desh
avee
mpha
siz
edc
ert
aind
ang
erst
hath
avec
ont
ri
but
edt
oco
rpo
rat
ego
ver
nan
cef
ai
lur
e,f
ore
xamp
lei
ndi
vi
dua
ls
h
avi
ngt
oog
rea
tani
nfl
uen
ce.
 Th
epr
ovi
si
onsh
avep
rov
ide
dbe
nchma
rkst
hatc
anb
eus
edt
ojud
get
hee
ffe
cti
ven
esso
fin
ter
nal
con
tro
lsa
ndr
is
kma
nag
eme
nt
s
yst
ems
.
 Th
egui
del
i
nesh
avep
romo
teds
pec
if
icg
oodp
rac
ti
cei
nan
umb
ero
far
eas
,fo
rex
amp
len
one
xec
uti
ved
ire
cto
rs,
per
for
man
ce-
r
ela
tedp
aya
ndd
isc
los
ure
.
 Th
ere
comme
nda
tio
nsh
aveh
igh
li
ght
edt
hei
mpo
rta
nceo
fba
sicc
onc
ept
san
dhi
ghl
i
ght
edh
owt
hes
eca
nbep
uti
ntop
rac
ti
ce,
for
e
xamp
lea
cco
unt
abi
l
ityt
hro
ughr
eco
mme
nda
tio
nsa
bou
tor
gan
iza
tio
n-s
tak
eho
lde
rre
lat
io
nsh
ipsa
ndt
rans
par
enc
ybys
pec
if
yi
ng
d
isc
los
urer
equi
reme
nts
.

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 APPROACHESANDDEVELOPMENTSI
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SZULU

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 APPROACHESANDDEVELOPMENTSI
NCORPORATEGOVERNANCEPREPAREDBYF
RANCI
SZULU

3
.0. S
amp
lee
xami
nat
ions
tand
ardt
ypeo
fque
sti
ons

1
.Th
erea
rea
rgume
ntsf
orb
othr
ule
san
dpr
inc
ipl
es-
bas
eda
ppr
oac
hest
oCo
rpo
rat
eGo
ver
nan
ce.
Des
cri
be

t
hee
sse
nti
alf
eat
ure
soft
hes
etwoa
ppr
oac
hest
oco
rpo
rat
ego
ver
nan
ce.

2. Di
st
ing
uis
hbe
twe
enUKa
ndUSg
uid
anc
eonCo
rpo
rat
ego
ver
nan
ce.

3
. Di
scus
sth
eCa
dbur
yre
por
t(1
992)
,Gr
een
bur
yre
por
t(1
995)a
ndHa
mpe
lre
por
t(1
998)

4. Cr
it
ic
all
yex
ami
net
heUKc
omb
ine
dco
rpo
rat
ego
ver
nan
cec
ode
.

5. Di
scus
sth
epr
ovi
si
onso
fth
eSa
rba
nes
-Ox
leyAc
t.

6
. I
den
tif
yan
del
abo
rat
eth
efa
cto
rst
hatl
edt
oth
eco
ll
aps
eofEn
ron
.

7. Cr
it
ic
all
yex
ami
net
heme
rit
san
dde
mer
it
sofI
nte
rna
tio
nal
Cor
por
ateGo
ver
nan
ce.

8. El
uci
dat
eth
eke
ypr
inc
ipl
eso
fco
rpo
rat
ego
ver
nan
cea
spr
esc
ri
bedb
yOECD.

9. I
den
tif
yan
del
abo
rat
eth
eke
yar
easo
fICGNg
uid
anc
eemp
has
is.

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