The directors of Avusa are committed to effective corporate governance and the need for high ethical standards in conducting its business. Avusa applies the principles set out in the King Report on Governance for South Africa 2009(King III) apart from the instances set out in the next paragraph. Explanations regarding non-appliance of King III are provided. Avusa’s directors acknowledge that they are responsible for Avusa’s affairs. This responsibility includes a strong focus on compliance with the qualitative aspects of corporate governance to ensure implementation matches the needs of the business.

The board, assisted by the audit and risk committee, made a detailed analysis of the steps required to apply King III, taking into account that Avusa is a small-capitalisation company needing to balance compliance with related costs. While Avusa evaluated the board and its committees during the year, an evaluation of individual directors was only performed after year-end. Full disclosure of individual executive and non-executive directors’ remuneration has been given in the past and will continue to be disclosed. However, the board has determined that providing similar information for the three most highly-paid employees who are not directors of the company is not appropriate from a competitive perspective, given that the media sector is small and skilled executive resources are scarce. This approach will be reviewed as required.