King encourages all entities to adopt the King III principles and explain how these have been applied or are not applicable. In contrast to the earlier versions, King III is applicable to all entities, public, private and non-profit. The report recommends that organisations produce an integrated report in place of an annual financial report and a separate sustainability report and that companies create sustainability reports according to the Global Reporting Initiative's Sustainability Reporting Guidelines. In the next version, the 2009 King III report, governance, strategy and sustainability were integrated. Mervyn King considered the King II report wrong to include sustainability as a separate chapter, leading companies to report on it separately from other factors. In addition further enforcement takes place by regulations such as the JSE Securities Exchange Listings Requirements. However, it co-exists with a number of laws that apply to companies and directors including the Companies Act.
#BOARD KINGS CODES CODE#
The key principles from the second King report covered the following areas:Īs before, the code is not enforced through legislation. As before, it encourages all companies to adopt the applicable principles from the code.
In addition to those types of organizations listed in King I, it was applicable to departments of State or national, provincial or local government administration falling under the Local Government: Municipal Finance Management Act, and public institution or functionary exercising a power or performing a function in terms of the constitution, or exercising a public power or performing a public function in terms of any legislation, excluding courts or judicial officers. This revised code of governance was applicable from March 2002. In 2002, when the Earth Summit was held in Johannesburg, King pushed for a revision of the report (King II), including new sections on sustainability, the role of the corporate board, and risk management. Determination and disclosure of executive and non-executive director’s remuneration.Appointments to the board and guidance on the maximum term for executive directors.Board of directors makeup and mandate, including the role of non-executive directors and guidance on the categories of people who should make up the non-executive directors.The key principles from the first King report covered:
It defined "large" as companies with shareholder equity over R50 million, but encouraged all companies to adopt the code. It was applicable to all companies listed on the main board of the Johannesburg Stock Exchange, large public entities as defined by the Public Entities Act of South Africa banks, financial and insurance companies as defined by the Financial Services Acts of South Africa and large unlisted companies. It included not only financial and regulatory aspects, but also advocated an integrated approach that involved all stakeholders. It established recommended standards of conduct for boards and directors of listed companies, banks, and certain state-owned enterprises. In 1994 the first King report on corporate governance (King 1) was published, the first corporate governance code for South Africa. It views sustainability as the primary moral and economic imperative of this century the code's view on corporate citizenship flows from a company's standing as a juristic person under the South African constitution and should operate in a sustainable manner. King believes that leaders should direct the company to achieve sustainable economic, social and environmental performance. It views good governance as essentially being effective, ethical leadership.
The philosophy of the code consists of the three key elements of leadership, sustainability and good corporate citizenship. It also espouses an apply or explain approach, unique to the Netherlands until King and now also found in the 2010 Combined Code from the United Kingdom. Unlike other corporate governance codes such as Sarbanes-Oxley, the code is non-legislative and is based on principles and practices. Ĭommittee members included Phillip Armstrong, Nigel Payne, and Richard Wilkinson. The committee's report was to be the first report of its kind in South Africa.
#BOARD KINGS CODES FREE#
He viewed this as an opportunity to educate the newly democratic South African public on the working of a free economy. King to chair a committee on corporate governance. In July 1993 the Institute of Directors in South Africa asked retired Supreme Court of South Africa judge Mervyn E.
0 kommentar(er)
