King Report on Corporate Governance
Corporate Governance
The King Report on Corporate Governance for South Africa has steadily gained more recognition over the years since inception. Public companies, large corporations and medium to small sized businesses are committing to the principles of integrity, accountability and transparency as set out in the second King Report on Corporate Governance in South Africa (the Code). These businesses recognise the importance of sound corporate governance principles in their dealings with all stakeholders and thereby carry out their responsibilities based on the core principles of the King Report. Safety, Health, Environment, Quality and Risk have become core principles within these entities.
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view the King Report on Corporate Governance for South Africa 2002 (PDF)
view the King Report 3 on Governance for South Africa (PDF)
View the Draft Code of Governance Principles 2009 (PDF)
It is expected that the new Act will become operative on 1 July 2010. The King III report will be effective from 1 March 2010 and until then, King II will apply.
The Draft Report for Corporate Governance for South Africa (King III or King 3) and the Draft Code of Governance Principles were released for comment on 25 February 2009. Comment should be submitted before 25 April 2009. The practice notes or guidelines (which provide the necessary guidance on the implementation of the code) will not be available for public comment and will be made available on 1 September 2009 together with the final King III.
Who will it apply to ?
It applies to all entities - big and small, public and private - on an 'apply or explain' basis. The Report states that:
'In contrast to the King I and II codes, King III applies to all entities regardless of the manner and form of incorporation or establishment.'
The Code states that:
'All entities should apply both the principles in this Code and the best practice recommendations in the Report. In situations where the board or those charged with governance decide not to apply a specific principle and/or recommendation, this should be explained fully to the entity's stakeholders. Where entities have applied the Code and best practice recommendations in the Report, a positive statement to this effect should be made to stakeholders.'
All entities and directors should be reading, considering the implications of and if necessary submitting comments on King III.
The Draft King Report and Code for South African 2009 are available on the web site of the Southern African Chapter of the Institute of Directors. For your convenience the pdf attachments are available on our website.
