Corporate Governance Code

Mondi is committed to strong ethical values and professionalism in all its activities. As an essential part of this commitment the Boards of Mondi Limited and Mondi plc (together ‘the Boards’) support the highest standards of corporate governance and best practice and are committed to the principles of transparency, integrity and accountability.

Accordingly, Mondi has complied with the principles contained in the South African King III Code of Corporate Governance Principles and the UK Corporate Governance Code issued by the Financial Reporting Council, save as set out below:

• Cyril Ramaphosa, the joint chairman, was not considered independent upon appointment in view of his existing connection with Mondi as chairman of the Shanduka Group, which has a shareholding in Mondi Shanduka Newsprint (Pty) Ltd. Notwithstanding this, Mondi benefits greatly from his considerable knowledge and experience, particularly of the South African business environment, and the Boards firmly believe that this justifies his appointment; and
• the Boards have determined that the DLC sustainable development committee provided the appropriate oversight for the sustainability reporting in the integrated report rather than the DLC audit committee, as recommended under King III. Due to the nature of Mondi’s business the DLC sustainable development committee regularly reviews all key sustainability issues for the Group, meeting six times a year and reports directly to the Boards. Therefore it is considered to be better placed to review the integrity of the sustainability reporting. The DLC sustainable development committee therefore provides the assurance on sustainability issues in the integrated report.

The Boards have adopted a share dealing code for dealing in securities of Mondi Limited and Mondi plc which is based on regulatory and governance best practice. The code sets out the restrictions placed on directors, senior management and other key employees with regard to their share dealing to ensure that they do not abuse their access to information about the Group pending its public release and availability to shareholders and other interested parties.

For further details regarding Mondi’s corporate governance refer to the report contained in the 2011 integrated report and financial statements.

Last change: 2012-03-22