Corporate Governance

Profmed is governed by a Board of Trustees in accordance with the Medical Schemes Act No. 131 of 1998, as amended. The Board places a high priority on good governance to ensure the effective management and functioning of the Scheme, and to safeguard the interests of members.

The King Report on Governance for South Africa (King IV) sets the standard for good corporate governance. The Board has adopted the recommendations as set out in King IV to ensure that the Scheme is managed according to best-practice governance principles.

The Board has established various committees to assist it to effectively discharge its duties. These are the Medical Committee and the Investment Committee, which are standing committees, and the Audit and Risk Committee, which is an independent committee. The Nominations Committee is an ad hoc committee. These committees are constituted annually by the Board to ensure their relevance and effectiveness, and inclusiveness of appropriate skills and expertise from the Board as well as independent experts.

The Scheme’s Principal Officer/Chief Executive is appointed by the Board. The Principal Officer executes the Board’s decisions, implements the Scheme’s strategy and manages the daily operations of the Scheme.

The pillars upholding the Scheme’s governance are the:

• Medical Schemes Act No. 131 of 1998 (as amended);
• Rules of the Scheme;
• King Report on Governance for South Africa (King IV).

The Board annually reviews compliance with these tenets of governance.

For purposes of disclosure, the documents below provide further insight and transparency into Profmed’s governance:

• Compliance with King IV;
• Profmed Charter, incorporating the Code of Conduct and Conflict of Interest Policy;
• Audit and Risk Committee Charter;
• Board and Board Committee self-evaluation reports;
• Profmed Remuneration Policy;
• Remuneration Committee Terms of Reference;
• Governance Processes and Policies checklist;
• Profmed Values.