What is the King Code III?
The King III code is a comprehensive international corporate governance regime which addresses the financial, social, ethical and environmental practices of organisations. HR management plays a role in managing corporate governance by using the King III code as a guideline.
What is the King IV report on corporate governance?
King IV™ is structured as a Report that includes a Code, with additional, separate sector supplements for SME’s, NPO’s, State-Owned Entities, Municipalities and Retirement Funds. The King Code™ contains both principles and recommended practices aimed at achieving governance outcomes.
What is the difference between King Code 3 and 4?
The key major difference between King III and King IV is the change from the “apply or explain” culture to a “apply and explain” culture. King IV places more accountability on the governing board and does away with the tick box approach.
When was the King III Report released?
1 September 2009
The release of King III report on 1 September 2009 represents a significant milestone in the evolution of corporate governance in South Africa and brings with it significant opportunities for organisations that embrace its principles.
What is good good governance?
Good governance is the process of measuring how public institutions conduct public affairs and manage public resources and guarantee the realization of human rights in a manner essentially free of abuse and corruption and with due regard for the rule of law.
What is good governance King IV?
King IV is principle- and outcomes-based rather than rules-based. Corporate governance should be concerned with ethical leadership, attitude, mindset and behaviour. The focus is on transparency and targeted, well-considered disclosures.
What is the purpose of the King IV Report and what jurisdiction does it have over South African companies?
The objectives of King IV are to: Promote corporate governance as integral to running an organisation and delivering governance outcomes such as ethical culture, good performance, effective control and legitimacy.
Do all companies have to comply with King IV?
In principle, King IV can be applied to all entities. It employs the generic reference “governing body” when referring to the primary governance structure within an organisation (in the case of a company, its board).
What is the purpose of the King IV report and what jurisdiction does it have over South African companies?
What is key for good governance?
Key attributes of good governance transparency. responsibility. accountability. participation.
What is good governance in simple words?
Good governance means that processes and institutions produce results that meet the needs of society while making the best use of resources at their disposal. The concept of efficiency in the context of good governance also covers the sustainable use of natural resources and the protection of the environment.
Why is the King IV report important?
King IV encourages organisations to move beyond compliance to crafting actions that are appropriate to the organisation’s context, and which will move them closer to achieving the goals enshrined in its 17 principles. In so doing, King IV is helping organisations realise the benefits of corporate governance.
Where can I find the King III report and code of governance?
However, the reader is encouraged to consult the full King III Report and the Code of Governance Principles, now available from the Institute of Directors in Southern Africa. Board and Directors The board, director and company refers to the functional responsibility of those charged with governance in any entity.
What is King III and how does it affect your board?
King III requires boards to be comprised of a majority of non-executive directors, of whom the majority should be independent. Every year the directors who are classified as independent should have their independence assessed by the board, particularly those that have been on the board for longer than nine years.
What is the role of risk management under King III?
Under King III, risk management remains important and more detailed guidance is given on how it is to be accomplished. The board is responsible for the governance of risk and disclosure. Management is responsible for the risk management design, implementation and monitoring of the risk management plan. IT governance
Do you apply the principles of King III?
In South Africa, under King III, entities are required to make a statement as to whether or not they apply the principles and then to explain their practices. It is relevant too that King III states “Each principle is of equal importance, consequently ‘substantial’ application of this Code and Report does not achieve compliance.”