The full report here: King Report III
Mervyn King’s third instalment in his series of “Corporate Governance for Dummies” is out for public comment.
So get on your reading glasses, pin back your eye lids and make some comments.
Apparently the changes from King II to King III are being touted as the new hotness in the field of directors’ duties and corporate social responsibility. Do they speak to the brave new world of corporate and financial cataclysm or are they mostly vanilla?
Bear in mind when passing comment that they need to be addressed to
Chief Executive – Institute of Directors in Southern Africa
PO BOX 908
In particular note the following arising out of the new code:
It applies to all entities (as opposed only to listed companies, financial institutions and public companies)
It tries to impact entity performance over and above simply reporting
The board of directors must appoint a minimum of two executive directors: the CEO and the director responsible for finance (as opposed to the previously sought balance between executive and non-executive directors)
Remuneration policy is to be approved by shareholders and factors outside the influence of executives should not be taken into account when assessing remuneration
Executive directors’ remuneration is left to the board to determine, without shareholder approval
Non-executive directors should be precluded from receiving share options
An internal audit should follow a risk based approach, independent approach
Risk management should be intrusive and should not be viewed only as a reporting process to satisfy governance expectations