Managing risk and governance

The board, assisted by the audit and risk committee, continuously monitors the top risks to ensure timeous value creation or preservation action in line with its approved risk appetite and risk management strategy.

BOARD OF DIRECTORS

AUDIT AND RISK COMMITTEE

DIRECTORS’ AFFAIRS AND GOVERNANCE COMMITTEE

INVESTMENT COMMITTEE

NOMINATIONS COMMITTEE

SOCIAL, ETHICS AND TRANSFORMATION COMMITTEE

In South Africa, principles and guidelines for corporate governance are set by:

  • The King IV Report Code of Corporate Practices and Conduct
  • The Companies Act, 71 of 2008, as amended

RMH and all of its subsidiaries and associates endorse King IV. RMH is listed on the JSE and also complies with the JSE Listings Requirements.

King IV

B-BBEE Report

RMH is a JSE Limited (JSE) listed investment holding company with a 34.1% stake in separately listed FirstRand Limited (FirstRand) and 100% of RMH Property.

RMH does not have operational involvement in its portfolio companies and the transformation and black economic empowerment strategies are the responsibility of the management and boards of these companies. As a major and value-adding shareholder, RMH encourages levels of transformation across its portfolio companies consistent with the spirit and principles of the Broad-based Black Economic Empowerment Act (B-BBEE Act) and the Financial Sector Charter (FSC).

RMH is a Level 8 contributor to BEE as at 30 June 2017, as verified by Mosela and SizweNtsalubaGobodo Rating Agency for reporting in terms of section 13G (2) of the B-BBEE Act and published in terms of section 16.20(g) of the JSE Listings Requirements.

Link to report

The rating should be evaluated against the background of the majority of RMH’s income consisting of dividend income from its underlying portfolio companies (predominantly FirstRand which is a Level 2 contributor) which is paid out to RMH’s shareholders after taking into account tax, funding and other holding company costs. RMH has limited operational capacity at the holding company and therefore a limited expense base. The income received by RMH has already been subject to B-BBEE requirements and measurement at the underlying portfolio company level and certain elements of the scorecard will therefore not be met in a meaningful manner by RMH.