corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.
At Edcon, they apply sound corporate governance as a means of ensuring the sustainability of the organisation and its business. To them, sustainability means that Edcon will continue to survive and thrive to the benefit of all their stakeholders, always with due cognisance of their integrated economic, social and environmental performance.
The fact that they are a privately owned enterprise does not detract them from applying corporate governance principles and practices in line with King III guidance. Furthermore, Edcon complies with all legislation to which it is subject.
Edcon has a unitary board structure comprising of two executive directors and five non-executive directors.
Their Board of Directors has delegated authority for the day-to-day affairs of each of their divisions to executive managers. Their executive management team is mandated to assist in reviewing the operations and performance of Edcon and its subsidiaries, developing strategy and policy proposals for consideration by their Board of Directors and implementing the directives of the Board.
The Term Paper on Corporate governance 4
Conduct a review of the governance of your organisation (or one with which you are familiar) in the form of a report to the Chairman (or President) of the Governing Board of Directors. In the brief report use the concepts, tools and techniques learned in this subject to review the structure, process and effectiveness of the governance of the organisation and make recommendations for appropriate ...
The directors and executive managers are indirect equity investors in Edcon. The non-executive directors may be deemed beneficial owners of securities in Edcon, which in turn is a shareholder of Edcon. The executive managers are beneficiaries of the Founder Investor Trusts, which in turn are shareholders of Edcon Holdings (Pty) Limited. In addition, historically disadvantaged employees own, through the Edcon Staff Empowerment Fund, a significant portion of shares in Edcon.
The directors complete questionnaires on an annual basis to evaluate the effectiveness of the Board. This mechanism is used to ensure not only that the Board’s chartered responsibilities are complied with, but also that adequate attention is paid by the Board to matters of both performance and conformance. The results of the exercise are collated by the Company Secretary, considered by the Chairman and discussed with the Board for purposes of performance improvement. A mechanism to evaluate the performance of individual directors is currently under consideration.
Directors are required to inform the Board timeously of conflicts or potential conflicts of interest they may have in relation to particular items of business. Directors are obliged to excuse themselves from discussions or decisions on matters in which they have a conflicting interest, unless resolved otherwise by the remaining members of the Board. Directors are required to disclose other directorships they hold and their interests in contracts that Edcon may conclude or may already have concluded, at least annually and as and when changes occur. All directors have agreed to consult with and obtain the consent of the Chairman (and, in the case of executive directors, the Chief Executive) in regard to appointments to the Boards of other companies. Declarations of interest are tabled annually at the Board meeting or whenever a director has concluded or is about to conclude a contract where he is conflicted.
Directors have unlimited access to the Company Secretary, who acts as an advisor to the Board and its committees on issues including compliance with rules and procedures, legislation affecting Edcon and the King Code. Articles dealing with recent developments in the corporate governance arena are included as a regular feature in the papers prepared for the quarterly Board meetings. Furthermore, any director may, in appropriate circumstances and at the expense of Edcon, obtain independent professional advice. The directors are also entitled, with the prior knowledge of the Chief Executive Officer, to have access to senior management and to relevant Edcon information.
The Term Paper on Director Duties Company Law
Achem Pte Ltd (Achem) was in the business of trading in industrial chemicals. The company was founded by Heng and Tan. Both were directors and shareholders of the company. Other than Heng and Tan, the other shareholders include Heng’s and Tan’s relatives and some of these relatives were also employees of Achem. Employee turnover was low and every employee was treated as part of one big family. ...
Integrity is a crucial part of Edcon’s value by which the entire staff must live up to. They are open, honest, fair and inclusive in all their relationships. They accept and learn from constructive criticism. They make and keep commitments. Their values are more important than financial numbers. The company’s continuing success is based on who they are (PEOPLE), how they behave (INTEGRITY), what they do (PERFORMANCE) and how they do it (PROFESSIONALISM).
These four values form the cornerstone of the company’s culture. They try to achieve their full potential as leader, as Edcon employees. They are committed to winning – by learning as much as they can, continuously improving what they do, and working as a disciplined team every day. Edcon being a company where they retail clothing does not need to employ people with high qualification. Edcon believes that high integrity will hold them in good steadfast and will increase market share as opposed to high academic qualification among their competitors.
Yes charted accounting should undertake a practical examination as this will increase their knowledge about the company they are working for and this will bring about accuracy when reviewing the audit report. It will also add value to the organisation as the practical examination will give you grass root understanding about what you are applying. This will promote effectiveness and will increase efficiencies. Gaps or breaches in the process will be easily identified as one can relate to what is being done or said without detailed explanation. Ultimately, productivity will be enhanced with the same labour force contributing to a cost cutting culture. Practical examination will be much more implementable and organisation specific as opposed to the general theoretical examination which must later be customised to organisation specific.
The Term Paper on Australian Company Report
Group Oral Presentation: the drivers and conditions for the survival and success of an Australian business enterpriseQantas Airways Limited ABN 16 009 661 901 October 2005Fact FileQANTAS AT A GLANCEHISTORY Qantas is the world's second oldest airline. It was founded in the Queensland outback in 1920 andis Australia's largest domestic and international airline. Qantas is also recognised as one of ...
It is concerned with assessing applied knowledge and skill in relation to professional conduct and competence to practice as a Chartered Accountant. It will encourage staff to promote best practice and support fellow staff in fulfilling their contractual obligations. The benefits that are borne from Practical Examination will lead to an organisation attracting, recruiting and retaining staff that can be classified as cream of the crop. The organisation will enjoy a reduction in staff turnover together with the associated recruitment and training costs, increased staff morale and a diverse workforce that brings a wider knowledge and experience that can be offered.
