Tag: BoardAccountability

The recent resignation of Angelo Swartz, CEO of Spar, marks a refreshing break from corporate tradition. By leading with candour and sincerity, Swartz delivered a masterclass in transparency. He moved beyond the usual PR-scrubbed departures that dominate executive exits.

The era of corporate governance as a mere compliance exercise is over. New regulatory frameworks, exemplified by the new King V Report on Corporate Governance (King V), take effect on 1 January 2026. These frameworks fundamentally transform how businesses make strategic decisions, allocate capital and manage risk. King V is not a compliance update; it reshapes governance as a strategic and operational imperative.

The Supreme Court of Appeal’s (SCA) decision in Msibithi Investments and Others v African Legend Investment and Others [2025] ZASCA 61 is a clear reminder that the power to declare a director delinquent under section 162 of the Companies Act 71 of 2008 (Companies Act) has real teeth.

The publication of the King V Code on Corporate Governance for South Africa 2025 (‘the Code’) marks more than just an update - it signals a profound philosophical shift. This new Code is engineered to restore and solidify stakeholder trust by providing verifiable assurance that companies are led with integrity and are effectively managed. It is a powerful move designed to drive transparent, long-term governance impacts and fundamentally end the era of "tick-box" compliance.

Following several high-profile governance breakdowns, most notably the collapse of Daybreak, South Africa continues to grapple with the aftershocks. These failures follow persistent cases of state capture. As a result, company directors across sectors now face heightened scrutiny.