n Acta Juridica - The synergies and interaction between King III and the Companies Act 61 of 2008 : enforcement and regulatory regime : part IV
|Article Title||The synergies and interaction between King III and the Companies Act 61 of 2008 : enforcement and regulatory regime : part IV|
|© Publisher:||Juta Law Publishing|
|Author||Mervyn E. King|
|Publication Date||Jan 2010|
|Pages||446 - 455|
The new Companies Act 61 of 2008 incorporates into statute for the first time issues of corporate governance. Governance, strategy and sustainability have become inseparable. This is so because of the ecological and biodiversity crisis on planet earth. This leads to the King III recommendation of integrated reporting, namely, a holistic and integrated representation of the company's performance in terms of both its finance and its sustainability. The new Act has a chapter on accountability and transparency and includes setting out the director's duties of good faith, care, skill and diligence. The Companies Tribunal will carry out, by way of voluntary alternative dispute resolution, reviews of administrative decisions made by the Commission, in line with the international emerging governance trend of mediation and arbitration clauses in major procurement contracts. Internal audit is now risk-centric and advises the board on the adequacy and effectiveness of internal controls. IT governance and IT security are now pervasive in the business of a company and dealt with in King III. Company law sets the framework in which the company operates and the recommended practices set out in King III provide guidance for directors as to how they should direct the business of the company and make decisions on behalf of the company. In this sense, the new Act and King III complement each other.
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