King III
In an interview with Mervin King, he considered the King II report was wrong to include sustainability as a separate chapter, leading companies to report on it separately from other factors. In the next version, the 2009 King III report, governance, strategy and sustainability were integrated. The report recommends that organizations produce an integrated report in place of an annual financial report and a separate sustainability report and that companies create sustainability reports according to the Global Reporting Initiative's Sustainability Reporting Guidelines.
In contrast to the earlier versions, King III is applicable to all entities, public, private and non-profit. King encourages all entities to adopt the King III principles and explain how these have been applied or are not applicable. The code of governance was applicable from March 2010.
The report incorporated a number of global emerging governance trends:
- Alternative dispute resolution
- Risk-based internal audit
- Shareholder approval of non-executive directors’ remuneration
- Evaluation of board and directors’ performance
It also incorporated a number of new principles to address elements not previously included in the King reports:
- IT governance
- Business Rescue
- Fundamental and affected transactions in terms of director’s responsibilities during mergers, acquisitions and amalgamations.
Again, the code of corporate governance is not enforced through legislation. However, due to evolutions in South African law many of the principles put forward in King II are now embodied as law in the Companies Act of South Africa of 2008. In addition to the Companies Act, there are additional applicable statutes that encapsulate some of the principles of King III such as the Public Finance Management Act and the Promotion of Access to Information Act.
Read more about this topic: King Report On Corporate Governance
Famous quotes containing the words king and/or iii:
“The king said, -Divide the living boy in two; then give half to the one, and half to the other. But the woman whose son was alive said to the king -because compassion for her son burned within her - -Please, my lord, give her the living boy; certainly do not kill him! The other said, -It shall be neither mine nor yours; divide it. Then the king responded: -Give the first woman the living boy; do not kill him. She is his mother.”
—Bible: Hebrew, 1 Kings. 3:25-37.
Solomon resolves a dispute between two women over a child. Solomon’s wisdom was proven by this story.
“Knavery seems to be so much a the striking feature of its inhabitants that it may not in the end be an evil that they will become aliens to this kingdom.”
—George III (1738–1820)