BOARD AND DIRECTORS
The
KZN Liquor Authority is headed and controlled by an effective and
efficient Board, comprising of executive and non-executive directors of
whom, the majority are non-executive directors in ensuring independence
and objectivity in decision making. The Board constitutes a fundamental
base of corporate governance in the public entity.
As
recommended by the King Code, the KZN Liquor Authority has a charter
setting out its responsibilities, which are disclosed in the annual
report. The charter confirms the Board's responsibility for the
adoption of strategic plans, monitoring of operational performance and
management, determination of policy and processes to ensure the
integrity of the KZN Liquor Authority's risk management and internal
controls, communication policy, and director selection, orientation and
evaluation. Accordingly, the Board Charter sets out the corporate
governance policies of KZNLA, as adopted by the Board.
Required
standards of disclosure should be satisfied and, in particular, timely
disclosure is to be made by organisation of information, which may
affect the shareholder value or which may influence Government's
decisions in relation to the public entity.
COMPOSITION OF THE BOARD
In line with the Liquor Licensing ACT, the Liquor Authority consists of:
- Five members appointed by the MEC for Economic Development ,Tourism and Enviromental affairs.
- The CEO as an ex officio member of the Board.
The composition of the Board is in line with section 2 (a-d) of the KZN Liquor Licensing ACT no 06 of 2010.
ROLE OF THE BOARD
- The
Board of the public entity has absolute responsibility for the
performance of the public entity and is fully accountable to the
shareholder ( Economic Development ,Tourism and Enviromental affairs -
EDTEA) for such performance. As a result, the Board provides strategic
direction to the organisation, and in concurrence with the executive
authority appoints the Chief Executive Officer and ensures that an
effective succession plan for all directors and key executives is in
place and adhered to.
- The Board must retain full and effective
control over the public entity and monitor management closely in
implementing Board plans and strategies.
- The Board should ensure
that the public entity is fully aware of and complies with applicable
laws, regulations, government policies and codes of business practice
and communicates with its shareholder and relevant stakeholders openly
and promptly with substance prevailing over form. As a result, it is
imperative that the board should have an agreed procedure in terms of
which a director/s may, if necessary, solicit independent professional
advice at the expense of the public entity.
- All Board members
should ensure that they have unrestricted access to accurate, relevant
and timely information of the public entity and act on a fully informed
basis. They should act in good faith, with diligence, skill and care
and in the best interest of the public entity, whilst taking account of
the interests of the shareholder and other stakeholders, including
employees, creditors, customers, suppliers and local communities. To
this end, the Board must monitor closely the process of disclosure and
communication and exercise objective judgment in the affairs of the
public entity, independent of management. In so doing, each individual
member of the Board must keep confidential all confidential matters of
the public entity.
OBJECTIVES OF BOARD
- The objects of the Liquor Authority are to:
- Consider, grant or reject liquor licence applications in the province;
- Issue licences in terms of Chapter 6 of this Act;
- Enhance accessibility of liquor licences in the province;
- Ensure a uniform, fair, equitable and transparent process in the issuing of liquor licences;
- Work
with the responsible member of the Executive Council, the Department,
municipalities and the liquor industry in the province in order to
implement and promote national and provincial liquor policies and norms
and standards; and
- To implement and promote initiatives which address the objects of the Act as provided for in Section 2(b) and (d).
Power, duties and functions of the BOARD
- The Liquor Licensing Act lists the following powers, duties and functions of the Board:
- Consider and process applications.
- Refuse or grant liquor licence applications.
- Advise the MEC on any matter referred to the Liquor Authority by the MEC
- Investigate
and make recommendations to the MEC, regarding any matter relating
directly or indirectly to the liquor industry in the province.
- Advise
the MEC on the development of a social responsibility programme in
respect of alcohol consumption and the implementation thereof.
- Assist
with the MEC in formulating policy and the establishing of norms and
standards concerning any matters in relation to the liquor industry in
the province.
- Participate in
programmes aimed at promoting the development of a responsible and
sustainable retail and micro-manufacturing liquor industry in the
province.
- Initiate and participate in the development programmes aimed at reducing the socio-economic and other effects of alcohol abuse.
- Assist
and advise the responsible MEC on the development of a programme in
order to pursue the objects of the Act as detailed in Section 2.
- Within
the framework of the national and provincial liquor policies, assist
and advise the MEC with regard to advising and guiding local committees,
the business unit within the Department responsible for small business
development, stakeholders in the liquor industry, consumers and
organisations or institutions whose activities or aims have an impact on
and relate to the liquor industry in the province.
- Perform such other functions as may be assigned to it in terms of this Act.
STATUTORY MANDATE OF THE LIQUOR AUTHORITY
- The foremost aim of the Liquor Authority is to ensure that the objectives of the Liquor Licensing Act are accomplished.
The Liquor Licensing Act lists the following as the objectives:
- To provide for the regulation of the micro-manufacturing and retail sale of liquor;
- To reduce the socio-economic and other costs of alcohol abuse;
- To provide for public participation in the consideration of applicants for registration;
- To
promote the development of a responsible and sustainable retail and
micro-manufacturing liquor industry in a manner that facilitates:
- The entry of new participants into the industry;
- Diversity of ownership in the industry;
An ethos of social responsibility in the industry
COMMITTEES OF THE BOARD
Guided
by the recommendation of the King Code on Corporate Governance and the
circumstances of the public entity, the KZN Liquor Authority has
established the following Board Committees, which are appointed by the
chairperson:
Audit and Risk Committee
The
Audit and Risk committee is responsible for improving management
reporting by overseeing audit functions, internal controls and the
financial reporting process. The committee is further responsible for
monitoring and managing risk issues as delegated by the Board. The
majority of the members of the Audit and Risk committee are financially
literate. The Board has appointed an independent, non-executive
director as a member of the Audit and Risk Committee.
Human Resources and Remuneration Committee
The
Board has established a Human Resource and Remuneration Committee
comprising of executive management and non-executive directors. The
Committee attends to all HR related matters and approves HR processes
adopted by the organisation, whilst further determining the Remuneration
for executive directors based on individual director's level of
expertise and contribution to the success of the public entity. The
committee will review remuneration benchmarks on a regular basis.
Adjudication Committee
The
committee is responsible for attending to specific matters relating to
the functions of the Board in line with considering and processing of
all applications for Liquor Licensing in terms of the Liquor Licensing
Act.
Board Committees have written Terms of Reference, which sufficiently describe committee membership, authority and duties.
