King V considers both local and global developments since King IV was launched in 2016 and incorporates critical shifts such as the recent amendments to the Companies Act. Picture: Shutterstock
The latest draft of the King Code on corporate governance is now open for public comment.
Dubbed King V, an updated and refined version of King IV, has been released by the King Committee and the Institute of Directors in South Africa (IoDSA). Public comments will be accepted until 4 April 2025.
“King V considers both local and global developments since King IV was launched in 2016 and incorporates critical shifts such as the recent amendments to the Companies Act, evolving practices in remuneration governance, global developments in sustainability reporting, and the rapidly advancing technological landscape,” says Ansie Ramalho, chair of the King Committee.
Ramalho highlights that corporate governance plays a vital role in strengthening institutions, making it essential to keep governance standards relevant and effective.
One of the key aims of King V is to simplify the interpretation and application of governance principles, making them more accessible to a wider range of stakeholders. The revised version has reduced the number of principles from 17 to 12, adopted clearer language, and streamlined content to improve usability.
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Additionally, the use of graphics and design elements has been minimised to better align with regulatory drafting conventions and accommodate reading-impaired individuals. Unlike previous versions, King V will be presented as a stand-alone document, with its supporting materials available on a single online platform.
Another important focus is creating a standardised approach to disclosure, making it easier for organisations to monitor governance practices and enhance accountability.
“This is helpful to regulators, shareholders and other users of reports on corporate governance,” says Parmi Natesan, CEO of the IoDSA.
“However, we are also of the view that the newly established disclosure template provides organisations with the added advantage of facilitating and clarifying their disclosures on their governance practices on an apply and explain basis,” she adds.
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Despite these refinements, the fundamental principles of King IV remain intact, which is said to ensure a smooth transition for organisations already applying the existing framework. The new Code will continue to extend beyond listed companies, encompassing state-owned enterprises, local government, non-profits, SMEs, and institutional investors such as pension funds and life insurers.
To encourage broad participation, the consultation process is open to businesses, government representatives, and the public. Comments can be submitted individually or on behalf of organisations.
This article was republished from Moneyweb. Read the original here.
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