From Integrated Annual Report for the year ended 31 December
2024
The Bell Equipment board, through effective leadership, applies good corporate governance to ensure sustainable growth, embeds an
ethical culture in the group and enhances long term equity performance.
Principles guiding our governance
Bell Equipment's board is the focal point and custodian of
good corporate governance for the group.
The group's governance and compliance framework is
founded on the principles of accountability, transparency,
ethical management and fairness. Governance processes
and group policies are regularly reviewed to ensure
alignment with regulatory changes, reflect best practice,
seek out opportunities to incrementally improve the group's
governance and ascertain whether the policies and
processes are still fit for purpose as the group's businesses
change over time.
As a global company, Bell Equipment needs to adhere
to a wide range of legislative requirements. Regulatory
compliance is prioritised across the group and the
embedding of board approved policies is monitored.
Members of senior management are regularly informed of all
relevant new legislation and amendments.
The board confirms that the group complied with the JSE
Listings Requirements, the provisions of the Companies Act,
the company's MOI and King IV during the year under
review, and in all material respects, complied with the laws
of the countries in which Bell does business, including the
laws of South Africa, where the company is incorporated.
In the past year, notable governance matters in the group
included the following:
the annual structured evaluation of the independence
of the non executive directors was undertaken, and six
non executive directors were considered independent
as defined by King IV™ and the JSE Listings Requirements,
namely Hennie van der Merwe, Derek Lawrance,
Mamokete Ramathe, Rajendran Naidu, Ushadevi Maharaj
and Markus Geyer.
the appointment of PricewaterhouseCoopers Inc. by
shareholders as the group's external auditors for the 2024
financial year, representing a rotation of auditors.
a dedicated strategy session was held during June 2024
with the board and the GEC members to consider and
approve the group strategy.
a firm intention announcement was issued via SENS on
15 July 2024 wherein shareholders were notified that IA Bell
& Company Pty Ltd ('IAB') had made an offer to acquire,
by way of a scheme of arrangement ('the scheme'), all
of the Bell Equipment shares from shareholders, save for
treasury shares, shares owned by IAB and shares held by
certain shareholders who were related to the founding
family of Bell Equipment, and certain third parties, for a
cash amount equal to 5 300 cents per scheme share. An
independent board was appointed, and the appropriate
governance processes were followed throughout.
Following the general meeting held on 12 September
2024, neither of the resolutions, as set out in the notice of
general meeting, were passed by the requisite majority
of shareholders and therefore the conditions to the
scheme were not all fulfilled and the scheme was not
implemented in accordance with its terms and the
delisting of Bell Equipment did not occur pursuant to
paragraph 1.17(b) of the JSE Listings Requirements.
the outcomes of the board, committee, external and
internal auditor, company secretary and chairman
self evaluations undertaken at the end of 2023 were
considered by the nominations committee during the first
quarter of 2024, with appropriate action items reported to
the board.
the ongoing monitoring of compliance with King IV™
and other material legislation affecting the group was
undertaken.
Governance focus areas in 2025:
The group has an established and comprehensive group
approvals framework aimed at establishing the various
limits of authority in place within the group. This framework is
reviewed by the board annually.
The board recognises that delegating authority does not
reduce the responsibility of directors to discharge their
statutory and common law fiduciary duties. As a parent
company, Bell Equipment Limited strives to exercise
appropriate governance oversight over its subsidiaries while
acknowledging their independence and the legal and
governance responsibilities that apply to each subsidiary.
The subsidiary directors are bound to adhere to the group
approvals framework and group policies although this does
not absolve the directors of subsidiary boards from exercising
their fiduciary duties.
A key responsibility of the board is to set and
steer the strategic direction of the group
with the aim of supporting the achievement
of good performance against its strategic
objectives while taking into account the
interconnectedness of its core purpose,
risks and opportunities, business model,
performance and sustainable development.
On an annual basis the GEC formally presents
the short, medium and long term strategy to
the board which challenges it constructively
in respect of its assumptions, time frames and
objectives and, if satisfied, formally approves
the strategy, budget and targets for the
ensuing year. The board and the GEC work
closely in determining the strategic direction
and objectives of the group as set out in the
strategic vision of the group.
King IV™ principles
King IV™ promotes good governance, transparency in leadership and decision making, and focuses on sustainability. In line with King
IV's recommendation to apply and explain how Bell Equipment practices good governance, we have prepared our detailed King IV
application register on the investor website, confirming the group has applied the King IV™ report throughout the 2023 financial year
and the directors confirm that the group has in all material respects voluntarily applied the principles of the code. The group views
developments and governance trends as opportunities to continuously improve and entrench its own standards.
Ethical culture
Good corporate governance is essentially about effective, ethical leadership. While leadership starts with each individual director,
it finds its expression through the board as a collective, setting the appropriate example and tone, which is referred to as ethical
governance. Bell Equipment is committed to conducting healthy business practices with honesty and integrity.
The Bell group has a developed code of business conduct, a code of ethics and a prevention of fraud and commercial crime policy
and is continuously involved in group wide efforts to re emphasise the ethical values in dealing with its stakeholders that underpin
these codes and policies and to provide regular ethics training to its employees.
Management is driving this leadership culture of ethical conduct by establishing the correct tone at the top in respect of the group's
corporate culture by ensuring it is based on the 1-BELL philosophy and aligning it to evolving best practice.
The group will not engage in, condone or tolerate any corrupt practices and rejects all forms of dishonesty, fraud, corruption
and unethical behaviour. Corruption is a risk that is managed on an ongoing basis, particularly in the diverse areas in which the
group operates. Ongoing awareness training is provided on the prevention of fraud and commercial crimes. The entrenchment of
applicable policies sets stringent standards relating to the prevention of fraud and the prosecution of offenders, the acceptance of
gifts from third parties and the declarations of potential conflicts of interest.
A group fraud risk assessment model was developed and is frequently reviewed. Mitigating action plans and controls are in place
and are updated as and when required.
The annual submission by employees of their electronic employee governance declarations confirming their compliance to the
group codes and policies, their declaration of any potential conflicts of interest as set out in the conflicts of interest policy as well
as their disclosure of any approved outside activities, continues to be undertaken. Any non compliance with policies or perceived
material conflicts of interest is reviewed and addressed by the GEC.