Tag: CorporateGovernance

A paradigm shift is necessary to ensure that shareholders, customers, employees and society benefit from good governance outcomes. The introduction of the King V Code on Corporate Governance for South Africa 2025 (King V) marks a clear turning point. Governance no longer functions as a simple administrative task.

More than one million South Africans now live abroad. In addition, 43% say they do not plan to return permanently, according to the South African Diaspora Report for 2026. For decades, skilled professionals have left to pursue greater opportunity and long-term career progression. As a result, the country’s skills base has shrunk, and economic competitiveness has weakened.

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.

Corporate reputation now carries measurable value. Companies with strong reputations can realise as much as 4.78% in additional annual shareholder returns. This creates a global 'reputation economy' worth an estimated $7.07 trillion, according to our landmark new study.

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.

In today’s competitive marketplace, companies face mounting pressure to attract and retain investors. This pressure can tempt leaders to overstate achievements or inflate projections. Some may also resort to window dressing. While these tactics can polish a company’s image, they raise the risks of corporate ‘washing’. More seriously, they can cross into misrepresentation or securities fraud

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.

Cyber incidents continue to grow in frequency and severity, especially as new technology emerges. While D&O and cyber liability policies offer distinct coverage differences, terms need to be carefully structured to avoid potential gaps.