http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.28Change: 0.03
R/$ = 11.31Change: -0.04
Au 1206.90 $/ozChange: -1.79
Pt 1280.00 $/ozChange: -22.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 20, 2009

King III will seek to correct unintended consequences of previous code

Back
Johannesburg|Africa|Africa|South Africa|Lindie Engelbrecht|Mervyn King
|Africa|Africa||
johannesburg|africa-company|africa|south-africa|lindie-engelbrecht|mervyn-king
© Reuse this



Implementing King II was difficult and costly because some of the principles were structured in an operational manner, Institute of Directors CEO Lindie Engelbrecht told a seminar on the draft of the third report. or King III, on corporate governance in South Africa in Johannesburg last week.

"Some of the principles had unintended consequences and we have tried to rectify this, as it has affected financial institutions, listed companies and private companies.

"Private companies were asked to comply but, because they were not specifically listed, decided not to comply.

"For example, if an entity or company does not have a risk committee, instead of complying, it will decide to explain the reason why it does not have a risk committee.

"The reality is that the process of risk management in that entity is compromised," said Engelbrecht.

The draft King III report was released in February for public comment and, once finalised, will be issued in September.

King III became necessary because of the anticipated new Companies Act and changes in international governance trends.

The seminar provided insight into the changes being introduced, including those related to the evolving role of the board, the management of modern key risks, risk-based internal audits, fundamental and affected transactions and alternative dispute resolutions.

Engelbrecht added that King III would be applicable to all entities.

"These codes are not rules. Corporate governance cannot be applied to a one-size-fits-all scenario. We decided to change the codes to include ‘apply' or ‘explain'. We want to move away from substantial compliance."

Last year, Prof Mervyn King, chairperson of the Global Reporting Initiative, said that he expected a 'revolutionary change' in the role internal auditors played in corporate governance within the next five years.

He added that King III would look specifically at whistleblowing and the role internal auditors played in managing corruption and fraud within companies.

He noted, however, that fraud and corruption could be managed through setting up codes of conduct within organisations, as well as through making use of internal auditors, external auditors and audit committees.

King further stated that many companies across the world were bigger than some governments and that companies were integral to society as many people spent more time at work than they did at home.

"Corruption has a rippling effect on thousands of people in a company that the corruptor might not know or see," commented King," adding that people wanted to have trust and confidence in a company.

"When there is corruption, the trust and confidence in the company starts waning, and, thus, the corruption must be stopped," concluded King.

 

 

 

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
More
 
 
Latest News
Updated 8 minutes ago Gauteng's provincial leaders are on high alert and ready to respond to water-related problems that may re-surface in the near future, cooperative governance MEC Jacob Mamabolo said on Tuesday. "We need to be on high alert for any eventuality given that this problem...
Information and communication technology services group Gijima on Tuesday announced that it would undertake a rights offer and restructure its existing trade receivables securitisation funding programme to ensure that it had sufficient working capital to underpin the...
Lynne Brown
Public Enterprises Minister Lynne Brown has urged that the best candidates be nominated to serve on the boards of State Owned Entities (SOEs). “Help me identify your brightest and our best,” said Minister Brown as she launched an initiative to obtain the best pool of...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
With South Africans facing the challenge of reducing electricity consumption, the biennial Eskom Energy Efficient Lighting Design Competition, to encourage the integration of energy efficient lighting in architectural, engineering and interior design, received a...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks