A summary of the King IV Report on Corporate Governance™ for South Africa, 2016
If one was asked to summarise King IV™ in one word, ‘transparency’ would come to mind. King IV™ builds on its predecessors’ positioning of sound corporate governance as an essential element of good corporate citizenship. Good corporate governance requires an acknowledgement that an organisation doesn’t operate in a vacuum, but is an integral part of society and therefore has accountability towards current and future stakeholders. With the introduction of an ‘apply and explain’ regime, King IV™ asks organisations to be transparent in the application of their corporate governance practices.
King IV™ reinforces the notion that good corporate governance is a holistic and interrelated set of arrangements to be understood and implemented in an integrated manner – good governance is not a tick-box or compliance exercise. King IV™ asks for mindful application of the King IV Code™ and for its recommended practices to be interpreted and applied in a way that is appropriate for the organisation and the sector in which it operates. Mindful application harnesses the benefits of corporate governance in the interests of the organisation.
"The overarching objective of King IV™ is to make corporate governance more accessible and relevant to a wider range of organisations, and to be the catalyst for a shift from a compliance-based mindset to one that sees corporate governance as a lever for value creation”
Key new or enhanced features of King IV™ relate to:
Considering that most of the King III principles have been retained in King IV™, albeit as recommended practices rather than as principles, one could easily assume that the content of King III has remained largely unchanged in King IV™. A comparison of the detail, however, crystallises the nuances between the two codes.
In this publication we compare the recommendations of King IV™ that are focused on governing structures and delegation, which are primarily contained in Part 5.3 of the King IV Code™, to the related recommendations of King III.
Anton van Wyk
Clients and Markets Leader, PwC South Africa
Tel: +27 (0) 11 797 5338
Partner , PwC South Africa
Tel: +27 (0) 11 797 5568
Partner, PwC South Africa
Tel: +27 (0) 11 287 0665
Africa Governance, Risk and Internal Audit Leader, PwC South Africa
Tel: +27 (0) 11 797 5851