RAND WATER ANNUAL REPORT 2023

HOW RAND WATER IS GOVERNED

Board Independency

The Board of Rand Water is the focal point and the custodian of the corporate governance framework which is the overarching policy that directs how all governance structures should operate. Rand Water’s corporate governance framework clearly articulates the basic principles and operational processes for the application of good corporate governance throughout the governance structures within the business. The Board views good governance as a vital component in operating a successful and sustainable business, as well as providing assurance to all stakeholders. To that end, the Board continues to adhere to the principles of the King IV, which was adopted in the 2016/17 Financial Year. This ensures the Board’s pivotal role in creating value by setting policy, overseeing corporate governance, compliance frameworks and control environment as well as maintaining sound corporate governance practices within the organisation. Rand Water also adheres to JSE Debt Listing Requirements, as amended. As a debt issuer, Rand Water is mandated to implement and disclose the King IV corporate governance practices in addition to complying with the IFRS. RAND WATER BOARD CHARTER The Board has adopted an appropriate Board Charter, to regulate its affairs, and satisfied that it has discharged its responsibilities contained therein. The members collectively understand their roles and responsibilities, as outlined in the Board Charter and the Water Services Act. The Board Charter is reviewed every two (2) years or as and when legislative, policy and regulatory developments dictate. RAND WATER BOARD COMPOSITION Aligned with King IV and the Board Charter, the Board comprises a majority of independent Non-Executive members. The Rand Water Board currently comprises of a total of 13 Board Members, i.e. 12 Non-Executive Directors, and one (1) Executive Director who is the Chief Executive.

8%

92%

● Non-executive directors Figure 5: Board Independency

● Executive Directors

The appointment of the members was approved by Cabinet in September 2022, and to assume office effective 21 September 2022. In terms of Schedule 1 of the Water Services Act, members will serve a term not exceeding four years. For the financial year under review, there were no new appointments, resignations and rotations within the Board. How Board Members are Appointed Section 28 (1) of the Water Services Act, Act No. 108 of 1997 empowers the Minister to establish a water Board and to appoint members of the water Board. Schedule 1 of the Water Services Act, Act No. 108 of 1997, regulates the terms of office of Board members, the procedure for the recommendation of persons for appointment as chairperson or Board members, and the termination of office of Board members.

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