Tag: King IV

Remuneration committees have an onerous task of navigating one of the most contentious issues in almost any company – that of setting remuneration for executives and more recently overseeing the remuneration of the workers.

Comair returned to the headlines by advising on 1 June that it was voluntarily suspending its flights until the funding necessary to resume operations had been secured. What has got customers hot under the collar, though, is that it had advertised a one-day sale on the previous day (31 May).

In view of their important role in supporting governance, boards must take steps to protect whistle-blowers and promote a culture of whistle-blowing.

Volume 1 of the second Zondo Report (Zondo 2), which deals with Transnet, graphically shows how important it is for a CEO to appointed who has the right qualities - and, consequently, the board’s respect. CEO appointments should be the prerogative of the board in terms of governance best practice.

Conclusions and recommendations made in part one of the state capture inquiry report align closely to a letter sent by the Institute of Directors South Africa (IoDSA) to the Zondo Commission in September 2021. The letter included recommendations on director competencies as well as the nomination and selection of directors.

Reading through the proposed amendments to the Companies Act again, it struck me that they are symptomatic of a general South African problem: too much regulation, too few results. No doubt some of these amendments are necessary, but will they actually address the big issues that concern us all?

As long as government’s cadre deployment policy is defended, governance of South Africa’s state-owned entities (SOEs) will remain vulnerable and at risk. This is a reaction to the testimony of President Cyril Ramaphosa before the Zondo Commission of Inquiry into State Capture, who acknowledged that 'massive system failures' with board appointments paved the way for SOE failures. At the same time, the President defended cadre deployment.

State capture, defined as 'seeking to influence the formation of laws in order to protect and promote influential private interests', and its resultant Zondo...

An interview with Parmi Natesan, CEO, The Institute of Directors in Southern Africa (IoDSA), and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing the importance of corporate governance, accountability, skills and independence for directors, so that they can fulfil their duties, in the light of the recent testimony by Dudu Myeni and Yakhe Kwinana at the Zondo Commission.

Risk management is defined by the identification of events, both internal and external, that can affect the organisation’s ability to achieve specific objectives and to remain compliant within specific regulations. Risk management is carefully outlined in King IV as being inseparable from the company’s strategy and sustainability.