What is a king IV report?

What is a king IV report?

King IV™ 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 Code™ contains both principles and recommended practices aimed at achieving governance outcomes.

What is the King III report explain in detail?

King III requires companies to establish an internal audit function which provides assurance over the company’s governance, risk management and internal controls. (King III differs from Sarbanes-Oxley in that no attestation is required from external auditors on internal controls on financial reporting).

What is the need for King IV report?

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 is the significance of the King Reports in the South African economy?

The King Report and King Code defines corporate governance as “the exercise of ethical and effective leadership by the governing body”. This is why the King Report and King Code is so important – it sets out what ethical and effective leadership is.

Who should apply king4?

King IV™ in a nutshell. A set of voluntary principles and leading practices. Drafted to apply to all organisations, regardless of their form of incorporation. Sector supplements explain how the King IV Code™ should be applied by certain organisations/sectors.

What are the primary principles of the King III report?

The board could decide to apply the recommendation differently or apply another practice and still achieve the objective of the overarching corporate governance principles of fairness, accountability, responsibility and transparency.

What are King Code principles?

The philosophy of the code consists of the three key elements of leadership, sustainability and good corporate citizenship. King believes that leaders should direct the company to achieve sustainable economic, social and environmental performance.

What is the main difference between King Code III and IV?

For IT governance, one of the most notable differences between the King Codes is that King IV emphasises that governance should focus on technology and information as separate issues, not one. This is a significant departure from King III, which focused on technology rather than information.

What are the principles of King Code IV?

King IV is principle- and outcomes-based rather than rules-based. Corporate governance should be concerned with ethical leadership, attitude, mindset and behaviour. The focus is on transparency and targeted, well-considered disclosures. Remuneration receives far greater prominence, in line with international …

What are the 4 basic objectives of corporate governance?

Disclosure, transparency, and accountability: Disclosure, transparency and accountability are important feature for good governance. Timely and accurate information should be disclosed on the matters like the financial position, performance. Transparency is needed in order that government has faith in corporate bodies.

What are the objectives of King IV?

King IV therefore aims to be outcomes-based, reflecting what would be achieved through the effective application of the governance principles. Its objective is to reduce the “tick-box” approach often applied under King III.

How many principles are there in the King IV report?

King IV has moved from “apply or explain” to “apply and explain”, but has reduced the 75 principles in King III to 17 basic principles in King IV, one of which applies to institutional investors only.

Is King IV a law?

The King reports are not legally binding. However, for entities with a primary listing on the JSE Limited securities exchange certain aspects are binding by virtue of the listings requirements imposing obligations on issuers to comply therewith.

How does King IV apply to SMEs?

Perhaps the best place to start is to define a SME in terms of the King IV Report. The sector supplement on SMEs in the King IV Report, defines a SME as a private, for-profit company with a Public Interest Score (PI Score) of 350 or more as calculated based on regulation 26(2) of the Company’s Act 71 of 2008.

What are the characteristics of good corporate governance?

Below are some key practices of good Corporate Governance which companies should integrate into their businesses/practices;

• Strong and Qualified Board of Directors.
• Defined Roles.
• Integrity and Ethical Dealing.
• Risk Management.
• Accountability and Transparency.

What are the 8 characteristics of good governance?

According to the United Nations, Good Governance is measured by the eight factors of Participation, Rule of Law, Transparency, Responsiveness, Consensus Oriented, Equity and Inclusiveness, Effectiveness and Efficiency, and Accountability.

What are the benefits of good corporate governance?

Benefits of good corporate governance and examples

• Encouraging positive behaviour.
• Reducing the cost of capital.
• Improving top-level decision-making.
• Assuring internal controls.
• Enabling better strategic planning.
• Attracting talented directors.

What are the 7 characteristics of good governance?

• Participation. All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests.
• Rule of law.
• Transparency.
• Responsiveness.
• Consensus orientation.
• Equity.
• Effectiveness and efficiency.
• Accountability.

What are the tools of good governance?

Current tools on Good Governance

• Democratic participation. CLEAR – Citizen Participation.
• Good Governance.
• Human Resources and Leadership.
• Teleworking in Public Administration.
• Institutional Capacity and Quality Public Services.
• Local Finance.
• Territorial and Cross-Border Cooperation.

What is the most important characteristic of good governance?

Accountability is one of the most important characteristics of good governance. Good governance depends on how accountable Governmental as well as private sectors and civil society organization to their people and its institutional stakeholders.