King Report on Corporate Governance

The King Report on Corporate Governance is a ground-breaking code of corporate governance in South Africa issued by the King Committee on Corporate Governance. Three reports were issued in 1994 (King I), 2002 (King II), and 2009 (King III). Compliance with the King Reports is a requirement for companies listed on the Johannesburg Stock Exchange.[1][2] The King Report on Corporate Governance has been cited as "the most effective summary of the best international practices in corporate governance".[3]

Contents

History

In July 1993 the Institute of Directors in South Africa asked retired Supreme Court of South Africa judge Mervyn E. King to chair the first official committee on corporate governance. King viewed the committee as an opportunity to educate the recently-democratized South African public on the principles of working in a free economy.[4] King I was the first report of its kind in South Africa.[5]

Committee members included Phillip Armstrong, Nigel Payne, and Richard Wilkinson.

King I

King II

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,[4] the role of the corporate board,[6] and risk management.[7]

King III

The report was further revised in 2009 (King III).[8] King III recommends companies create sustainability reports according to the Global Reporting Initiative's Sustainability Reporting Guidelines.

As of June 2010, companies listed on South Africa's JSE Securities Exchange must comply with King III. The King Code of Governance (King III) recommends that organizations produce an integrated report in place of an annual financial report and sustainability report. Listed companies are required to produce an integrated report or explain why they are not. This requirement was implemented ahead of any formal or legal standards for an integrated report within South Africa and globally.[9]

See also

References

  1. ^ "Application of and approach to King III". Naspers. http://www.naspers.com/corp-gov-application-approach-king.php. Retrieved 4 August 2011. 
  2. ^ "Corporate Governance". Omnia. http://www.omnia.co.za/pebble.asp?relid=1879. Retrieved 4 August 2011. 
  3. ^ Banhegyi, Steve (2007). Management: Fresh perspectives. Pearson Education South Africa. p. 317. ISBN 9781868915941. http://books.google.com/books?id=MQD4CmMa1tgC&pg=PA317&dq=judge+mervyn+king&hl=en&ei=7Kc6To3VMIOw8gPa05DmAg&sa=X&oi=book_result&ct=result&resnum=3&ved=0CDQQ6AEwAg#v=onepage&q=judge%20mervyn%20king&f=false. 
  4. ^ a b Stewart, Neil (9 September 2010). "An Audience with the GRI's King". Inside Investor Relations. http://www.insideinvestorrelations.com/articles/16371/audience-mervyn-king/. Retrieved 4 August 2011. 
  5. ^ Hendrikse, Dr. John W.; Kendrikse, Leigh (2004). Business Governance Handbook: Principles and practice, Volume 1. Juta Academic. p. 339. ISBN 0702164992. http://books.google.com/books?id=croQAGwkNi8C&pg=PA339&dq=judge+mervyn+king&hl=en&ei=7Kc6To3VMIOw8gPa05DmAg&sa=X&oi=book_result&ct=result&resnum=6&ved=0CEUQ6AEwBQ#v=onepage&q=judge%20mervyn%20king&f=false. 
  6. ^ Monks, Robert A. G.; Minow, Nell (2003). Corporate Governance. Wiley-Blackwell. p. 298. ISBN 1405116986. http://books.google.com/books?id=RGmHAVPhmRwC&pg=PA298&dq=judge+mervyn+king&hl=en&ei=GKw6Tp3NEYmh8QOn_u3zCA&sa=X&oi=book_result&ct=result&resnum=9&ved=0CE8Q6AEwCDgK#v=onepage&q=judge%20mervyn%20king&f=false. 
  7. ^ Berwick, Graeme (2007). The Executives Guide to Insurance and Risk Management. Quality Results Pty Limited. p. 17. http://books.google.com/books?id=9end-Uoo8_gC&pg=PA17&dq=judge+mervyn+king&hl=en&ei=GKw6Tp3NEYmh8QOn_u3zCA&sa=X&oi=book_result&ct=result&resnum=5&ved=0CDwQ6AEwBDgK#v=onepage&q=judge%20mervyn%20king&f=false. 
  8. ^ Visser, Wayne; Matten, Dirk; Pohl, Manfred; Tolhurst, Nick. The A to Z of Corporate Social Responsibility. ISBN 9780470686508. http://books.google.com/books?id=woqEDQQzGp0C&pg=PT365&dq=judge+mervyn+king&hl=en&ei=-Yg6TtTiDoiZ8QOlzJCKAw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CCgQ6AEwAA#v=onepage&q=judge%20mervyn%20king&f=false. 
  9. ^ "An integrated report is a new requirement for listed companies". South African Institute of Chartered Accountants. 4 June 2010. https://www.saica.co.za/tabid/695/itemid/2344/language/en-ZA/An-integrated-report-is-a-new-requirement-for-list.aspx. Retrieved 8 August 2011. 

External links