King II
In 2002, when the Earth Summit was held in Johannesburg, King pushed for a revision of the report (King II), including new sections on sustainability, the role of the corporate board, and risk management. This revised code of governance was applicable from March 2002.
In addition to those types of organisations listed in King I, it was applicable to departments of State or national, provincial or local government administration falling under the Local Government: Municipal Finance Management Act, and public institution or functionary exercising a power or performing a function in terms of the constitution, or exercising a public power or performing a public function in terms of any legislation, excluding courts or judicial officers. As before, it encourages all companies to adopt the applicable principles from the code.
The key principles from the second King report covered the following areas:
- Directors and their responsibility
- Risk management
- Internal audit
- Integrated sustainability reporting
- Accounting and auditing
Read more about this topic: King Report On Corporate Governance
Famous quotes containing the word king:
“Mr. Clarke played the King all evening as though under constant fear that someone else was about to play the Ace.”
—Eugene Field (1850–1895)