King IVTM 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 CodeTM contains both principles and recommended practices aimed at achieving governance outcomes.
What are the requirements of King IV?
Certain concepts form the foundation stones of King IV. They are:
ethical leadership, the organisation in society, corporate citizenship, sustainable development, stakeholder inclusivity, integrated thinking and integrated reporting
. These concepts are relevant to three connected paradigm shifts in the corporate world.
What is the purpose of King IV?
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.
What are the four governance outcomes of King IV?
It becomes mindful when practitioners are striving to achieve principles which will result in the four good governance outcomes of ethical and effective leadership required by King IV:
adequate and effective controls and oversight; value creation in a sustainable manner; trust and confidence in the entity; and
…
Who must apply King IV?
It applies
to all organisations irrespective of the entity
. There are 4 main outcomes that King IV expects a governing body (“GB”) (eg. board of directors, trustees etc) to achieve. These are ethical culture, good performance, effective control, and legitimacy within the organisation.
What is risk according to King IV?
Principle 11 of the King IV Report on corporate Governance for South Africa states:
The governing body should govern risk in a way that supports the organisation in setting and achieving its strategic objectives
. … King IV also recognises that risk may in fact lead to opportunity.
Is King IV compulsory?
Whilst King IVTM
is voluntary
(unless prescribed by law or a stock exchange Listings Requirement) it is envisaged that it will be applicable to all organisations irrespective of their form or manner of incorporation.
What are King Code principles?
King Code means
The Code of Corporate Practices and Conduct representing the principles of good governance
as set out in the King Report 2 of 2002, which report supercedes the King Report of 1994; Sample 1.
How many principles are covered by Kings IV?
The Board will endeavour to comply with the
17 Principles
set out in King IV where, in the view of the Board, they apply to the business. The Principles embody the aspirations of the journey towards good corporate governance.
What is the latest King Report?
What is different in the versions of the King Report? It was published way back in 1994 and we have had King I, King II, King III, with
King IVTM
being the latest edition (The King IV effective date was 1 April 2017).
What are the outcomes of good governance?
- Encouraging positive behaviour. …
- Reducing the cost of capital. …
- Improving top-level decision-making. …
- Assuring internal controls. …
- Enabling better strategic planning. …
- Attracting talented directors.
Why is corporate governance important?
Why Is Corporate Governance Important? Corporate governance is important as
it enables organisations to achieve their goals, make formal decisions, control risks and assuring compliance
.
What is the difference between King III and King IV?
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.
Who should be on a risk committee?
Membership of the risk committee should include
executive and non-executive directors
. Those members of senior management responsible for the various areas of risk management should attend the meetings. The chairman of the board may be a member of this committee but must not chair it.
How do you reference King IV?
- King IV;
- King IV Report;
- King IV Report on Corporate Governance; and.
- King IV Code.
Does culture affect corporate governance?
Culture has a huge influence on the regulatory environment
, and this affects the corporate governance in organisations. … In other words, cultural differences within legal families among countries and within countries hence do potentially drive the structure of corporate governance.
