EliteDrive Rentals (Pty) Ltd Business Plan › Corporate Governance Framework

17.1 Governance Philosophy

EliteDrive is committed to implementing governance practices aligned with the King IV Report on Corporate Governance for South Africa (2016). While King IV application is not mandatory for private companies, the founders believe that early adoption of sound governance principles enhances investor confidence, supports sustainable growth, and mitigates risk.

17.2 Board Composition

The board of directors will initially comprise the three founding shareholders in their executive capacities. An independent non-executive director with experience in the tourism or financial services sectors will be appointed in Year 2 to provide independent oversight and strategic counsel. The board will meet quarterly and maintain formal minutes.

17.3 Board Committees

The following committees will be established as the company scales:

• Audit & Risk Committee: Chaired by the independent non-executive director; responsible for financial reporting oversight, internal controls, and risk management. To be constituted upon appointment of the non-executive director in Year 2.

• Remuneration Committee: Responsible for executive and senior management remuneration policy. Initially managed by the full board; to be formalised as a separate committee in Year 3.

• Social & Ethics Committee: Responsible for B-BBEE compliance monitoring, transformation reporting, and stakeholder engagement. To be constituted in Year 2 in alignment with Section 72(4) of the Companies Act.

17.4 Financial Controls & Reporting

EliteDrive will implement robust financial controls from inception, including:

• Segregation of duties between authorisation, recording, and custody of assets

• Dual signatory requirements for payments exceeding R50,000

• Monthly management accounts with variance analysis against budget

• Quarterly board reporting pack including financial statements, fleet KPIs, and risk register

• Annual external audit by an IRBA-registered audit firm

• Annual tax compliance review by an independent tax advisor

17.5 Conflict of Interest Management

Directors and senior management are required to declare all financial interests and potential conflicts in accordance with Section 75 of the Companies Act. A register of interests will be maintained by the company secretary (initially the CFO) and reviewed at each board meeting. Directors must recuse themselves from discussions and decisions in which they have a material personal interest.

17.6 Stakeholder Engagement

EliteDrive recognises the importance of proactive stakeholder engagement and will maintain structured communication with the following key stakeholder groups:

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