ANNEXURE F: FORMATIVE ASSESSMENT 1 register, in which they have already recorded the key risks relating to compliance and reputational risk. After the identification of the key risks by the senior management, a risk rating is allocated to each risk in the risk register and prioritised according to this rating. The risk committee determines Unite's risk tolerance levels at their annual meeting in order to focus the directors' attention on the identified risks which exceed the company's risk tolerance levels as determined by the risk committee. The risk tolerance and risk appetite are approved by senior management. The following persons are the members of the Remuneration Committee: Unite's Remuneration Committee takes responsibility for the governance of remuneration. The remuneration policy and implementation report was voted on by all members of the Remuneration Committee at their last annual meeting. The fees for the non-executive directors for their services as directors were submitted for approval through a special resolution by the shareholders. During this special resolution, the shareholders also voted 30% against the remuneration policy and implementation report. Nothing further was disclosed. During this special resolution meeting with the shareholders, it was decided that, regarding the categorisation of directors, the Remuneration Committee only wants to disclose in the annual financial statements whether each director is executive or non-executive. ANNEXURE F: FORMATIVE ASSESSMENT 1 During the special resolution meeting, the remuneration policy was also discussed. The remuneration policy was disclosed during the special resolution meeting. The remuneration policy will include the following: - Base salary, including financial and non-financial benefits of directors. - Payments to directors on termination of employment or office. - Any commission and allowance to directors. REQUIRED: Identify and discuss any contraventions of King IV by Unite Finance (Ltd). Provide the section of the King IV. Structure your answer by using the following headings: Maximum marks (50 marks) QUESTION 2 (50 MARKS) Unite Finance Ltd ("Unite") is a successful public company providing online money lending services. Unite Finance wants to be Africa's leading and preferred money lending company by 2030 . They have 2 subsidiaries, one located in Zambia called Unite Together (Pty) Ltd and one located in Botswana called Unite Stronger (Pty) Ltd. All entities have a February financial yearend. Unite Finance earns income from the loan origination and application fees and the outstanding monthly interest on the loan balances. You are a Trainee Accountant at ABC Auditors and are currently busy with the 2023 financial yearend non-assurance engagement of Unite. You were asked to review and comment on the King IV compliance of Unite. The following persons are the members of the Risk Committee: The Risk Committee exercises oversight of risk management and oversees that it results in the following: - An assessment of the organisation's dependence on resources and relationships as represented by the various forms of capital. - An assessment of potential upside, or opportunity, presented by risks with potentially negative effects on achieving organisational objectives. - The design and implementation of appropriate risk responses. Senior management delegates the responsibility for the implementation and execution of effective risk management to the risk committee. Senior management keeps a risk