IT solutions and infrastructure provider, Datacentrix, has won the board effectiveness category at this year`s Deloitte Good Governance awards.
According to Roy Shough, Partner in Enterprise Risk Services and corporate governance expert at Deloitte, the purpose of the annual awards is to focus attention on corporate governance practices of South African listed companies. By highlighting and rewarding best practices, the awards aim to encourage improved corporate governance within SA.
Candidates are judged by a panel of leading asset managers in four categories: board effectiveness, remuneration practices, corporate ethics and integrity, and sustainable development.
"The focal point of the board effectiveness category is how the interests of the company, and therefore of all shareholders and other stakeholders, are protected through the board`s processes," says Shough.
"The judges also looked at how directors are nominated and the selection process, the independence and objectivity of directors, how the board interacts with management, and achieving a balance between minimising risk and maximising opportunities. More generically, the judges ask themselves whether the performance of the company reflects sound guidance and direction, as well as effective monitoring and oversight from the board.
"In the case of Datacentrix, the judges were impressed with the sustained good performance in an industry under stress over the last few years. Credit was given to the effective role played by the company`s board and Gary Morolo as executive chairman," he says.
"As a small-cap listed company, this award is of great consequence to Datacentrix, especially considering our competition in the marketplace," says Gary Morolo, executive chairman at Datacentrix.
"This type of accolade supports Datacentrix`s long-term strategy of stability and positioning as a company driven by customer satisfaction, shareholder value considerations and observing strong operational and financial disciplines," he says. "Datacentrix has always prided itself on its decision-making processes with the entire board of 11 people involved in discussing issues.
"We run an uncomplicated operation and ensure that the board members are well informed and understand the business. It is clear that good governance, the direction of a board and its accountability to shareholders provide a strong basis for sustainable business.
"Strong governance has a positive impact on the overall economy growth of SA and promotes transformation. Awards like these play an important role in raising awareness of these issues at local companies," concludes Morolo.
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