The King Report

Code of corporate governance in South Africa

The code is non-legislative and is based on principles and practices. The code consists of the three key elements of leadership, sustainability and good corporate citizenship.

The key principles from the first King report covered:

  • 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
  • Appointments to the board and guidance on the maximum term for executive directors
  • Determination and disclosure of executive and non-executive director’s remuneration
  • Board meeting frequency
  • Balanced annual reporting
  • The requirement for effective auditing
  • Affirmative action programs
  • The company’s code of ethics

The report incorporates a number of global emerging governance trends:

  • Alternative dispute resolution
  • Risk-based internal audit
  • Shareholder approval of non-executive directors’ remuneration
  • Evaluation of board and directors’ performance

References: Hendrikse, Dr. John W.; Kendrikse, Leigh (2004). Business Governance Handbook: Principles and practice, Volume 1.

Monks, Robert A. G.; Minow, Nell (2003). Corporate Governance

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