Corporate Governance Acts and Regulations Common law Sets the minimum standards Applies to all companies Primary legislation The Companies Act 71 of 2008 amp Legislation The Competition Act of 1998 ID: 241752
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Slide1
The King Report in context
Corporate GovernanceSlide2
Acts and Regulations
Common law
Sets the minimum standardsApplies to all companiesPrimary legislationThe Companies Act 71 of 2008 &
LegislationSlide3
The Competition Act of 1998The Labour Relations Act of 1995
The Basic Conditions of Employment Act of 1997
The Occupational Health & Safety Act of 1993The National Environmental management Act of 1998The Employment Equity Act of 1998
Other LegislationSlide4
The Banks Act of 1993The Short Term Insurance Act
The Long Term Insurance Act
Public Finance Management ActEtc ……..
Specific LegislationSlide5
Applies to all (public) companies seeking a JSE listing
JSE Listing Requirements includes compliance with King III
JSE Listing RequirementsSlide6
Corporate Governance movement originated in UK in response to large corporate failures
Cadbury Report released in 1992
Greenbury Report released in 1995Hampel Report released in 1998
The BackgroundSlide7
Formed in 1992 by Institute of Directors
Chaired by Judge
Mervyn KingTo consider “issues of financial reporting & accountability, good practice & a code of ethical conduct for South African enterprises”
The King CommitteeSlide8
Published 1994Called King I or the Code
Applied to listed companies, large companies, public companies, banks, insurance companies
Set standards of governanceThe King Report (King I)Slide9
Published 2002 & revised King I
Introduced concept of the “triple bottom line”
Financial, social & environmental issues(people, profits & planet)Recommended practice for SA companiesListed companies to comply or explain
King IISlide10
Published 2009 & effective from March 2010
Updated to take cognisance of 2008 Company Act and developments in corporate governance
Best practice for all business entitiesNo “one size fits all”Move from “comply or explain” to “apply or explain”
King IIISlide11
The Triple Bottom LineSlide12
Ethical leadership and corporate citizenship
Boards and directors
Audit committeesThe governance of riskThe governance of information technology (IT)Compliance with laws, rules, codes and standardsInternal auditGoverning stakeholder relationships
Integrated reporting and disclosure
The issues covered by King III