Board Of Directors In Corporate Governance In Kings
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The tables that follow are structured around the five core categories of King IV. These are: Leadership, ethics, & corporate citizenship. Strategy, performance, and reporting. Governing structures & delegation of authority.
Composition of the Board The Board comprises five Independent non-Executive Directors, two non-Independent non-Executive Director and three Executive Directors. The majority of the directors are therefore non-executive directors, and the majority of the non-Executive Directors are independent.
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 III follows an inclusive approach to stakeholders, whereby the legitimate interests of stakeholders (eg employees, suppliers, customers, regulators, the environment, community, etc) are considered and recognised over and above solely the shareholders' interests, in a manner which befits the long term ...
There's also been a reduction in the size of the King Code and Report as well. King III had 75 principles whereas King IV only has 17 principles in total. The 17th principle only applies to institutional investors, so organisations are left with 16 principles that they have to comply with.
The King Code also understands that corporate governance is a leadership issue. Ethical leadership is exemplified by integrity, competence, responsibility, accountability, fairness, and transparency. The King Code defines corporate governance as “the exercise of ethical and effective leadership by the governing body”.
The basic principles of corporate governance are accountability, transparency, fairness, responsibility, and risk management.
A board of directors (BofD) is the governing body of a corporation or other organization, whose members are elected by shareholders (in the case of public companies) to set strategy, oversee management, and protect the interests of shareholders and stakeholders. Every public company must have a board of directors.
Composition of the Board The Board comprises five Independent non-Executive Directors, two non-Independent non-Executive Director and three Executive Directors. The majority of the directors are therefore non-executive directors, and the majority of the non-Executive Directors are independent.
