Tuesday, 15 March 2016
The Institute of Directors and King Committee have published for public comment a draft version of the latest King Report and Code on corporate governance in South Africa (King IV): see here (pdf). The report sets out the philosophy, principles, practices and outcomes that provide the benchmark for corporate governance in South Africa. The draft version states that no significant departures are proposed from the philosophical underpinnings of King III; a refining of concepts is instead outlined. This said, King IV is based on 'apply and explain', whereas King III was based on 'apply or explain'. The report makes clear that it is expected that companies will apply all of the principles in the King IV Code, with explanations provided of the practices that have been adopted in doing so. Whilst the principles are described as aspirations or ideals, they are regarded as basic to good governance.