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Introduction
F
ollowing his appointment on 1 September 2021 the new chief executive officer
(CEO), Dr. Pieter Taljaard, reconfirmed good governance practices, compliance with
all applicable legislation and adherence to fiduciary duties in the Grain SA group
of entities as a clear strategic intent.
The reorganisation of the support structure in the organisation enabled the establishment of a
dedicated company secretariat as from 1 December 2021.
In terms of the King IV Report on Corporate Governance for South Africa (2016), ‘corporate governance’
is the exercise of ethical and effective leadership, resulting in the following outcomes:
An ethical culture.
Good performance and value creation.
Effective control.
Legitimacy.
Therefore, both ethical and effective leadership forms the foundation of an appropriate corporate
governance framework in the organisation.
Good corporate governance is not merely a tick list of actions to complete, or directives on what
not to do, but must be aligned with the organisation’s culture and values.
Therefore, good governance practices on all levels of the Grain SA group of entities are imperative
to actively support the mission of Grain SA as being a credible, sustainable and inclusive producer
organisation that drives mandated strategic actions, including meaningful stakeholder relationships.
The Grain SA group of entities
GRAIN SA AS A NON-PROFIT ORGANISATION
Nature:
Grain SA is a voluntary association for commercial and developing producers with members
paying an annual membership fee consisting of a minimum amount and voluntary levies as approved
by Congress.
The
objectives
of Grain SA are set out in the constitution of the organisation. In essence, Grain SA
acts as mouthpiece for commercial and developing grain producers.
Tax status:
SARS confirmed tax exemption for Grain SA in terms of section 30B of the Income Tax Act
(SARS letter dated 25 May 2020).
The condition for tax exemption provides that no more than 15% of Grain SA’s income should
be from other resources, while at least 85% of Grain SA’s income must be from member-
related resources.
These principles and reference to section 30B of the Income Tax Act are also contained in the
constitution of Grain SA. Therefore, the elected Executive has a fiduciary duty to comply with
the conditions for tax exemption as set out in the constitution as well as in section 30B of the
Income Tax Act.
COMPANY SECRETARIAT
AT
GOVERNANCE PRACTICES
all levels
ENSURED
Good