Mondi’s dual listed company structure requires us to comply with the principles contained in the South African King III Code of Corporate Governance Principles (available at www.iodsa.co.za) and the September 2014 edition of the UK Corporate Governance Code issued by the Financial Reporting Council (available at www.frc.org.uk).
It is the view of the Boards that, except as referred to below, Mondi has complied throughout the year with all the provisions of these codes.
The Boards determined that the DLC sustainable development committee provided the appropriate oversight for the sustainability reporting in the Integrated report and financial statements 2016 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 reporting 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 has therefore provided the assurance on sustainability issues in the Integrated report and financial statements 2016.
The Boards note that the King IV Report on Corporate Governance for South Africa 2016 was published on 1 November 2016. The King IV Code replaces King III and disclosure of the application of the new code provisions is effective for financial years starting on or after 1 April 2017. We are in the process of undertaking a review of the new principles and recommended practices.
Also, in April 2016, a revised UK Corporate Governance Code was published, applying to accounting periods beginning on or after 17 June 2016. The new and revised provisions, that related to the responsibilities of the audit committee, were reviewed, our procedures updated and are reported on in the corporate governance report in the Integrated report and financial statements 2016.
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 please refer to the report contained in the Integrated report and financial statements 2016.