ipl-logo

King IV Report: Corporate Governance

967 Words4 Pages

Corporate governance is defined in the King IV Report as the “exercise of ethical and effective leadership by the governing body towards the achievement of the following governance outcomes:
• Ethical culture,
• Good performance,
• Effective control and
• Legitimacy.”

The purpose of this Corporate Governance Policy is to facilitate and encourage the ethical management of the company by its Board of directors, management and stakeholders in order to achieve the primary objectives of the company being sustainability, profitability and increased contribution to the socio-economic stability of our economy.

DEFINITIONS
Board “the Board of Directors of the Company”

Director “a member of the Board of the company, as contemplated in section …show more content…

Principle 2: Role and responsibility of the Board
The Board is responsible for corporate governance and has two main functions: first, it is responsible for determining the company‘s strategic direction (and, consequently, its ultimate performance); and second, it is responsible for the control of the company. The board requires management to execute strategic decisions effectively and according to laws and the legitimate interests and expectations of stakeholders. (King III)

2.1 To lead by example and demonstrate good governance and accountability starts at the top. The Board of directors must at all times exercise the necessary care, skill and diligence in the performance of their duties.

2.2 The Board of directors have a fiduciary duty to act in good faith of the company when executing their duties. This entails:
a) not exceeding the powers with which have been bestowed upon …show more content…

The Board must ensure that fraud risk assessments are undertaken annually to identify and evaluate key risk areas that directly or indirectly affect the company. The risk management plan should advise on how these risks may be mitigated and how they should be documented in the risk registers.

Principle 5: Integrated reporting and disclosure
Integrated reporting means a holistic and integrated representation of the company‘s performance in terms of both its finances and its sustainability. The board should ensure the integrity of the company’s integrated report.

5.1 Transparent and honest reporting must be provided to the stakeholders. The Board must ensure that the interests of the stakeholders are considered and a consultation based approach should be adopted in order to discuss the performance of the company. This will also be achieved by maintaining continuous engagement with stakeholders on pertinent matters of the company.

2. LEGAL RELEVANCE OF

Show More
Related

  • Tyranny Through Separation Powers Dbq Analysis

    251 Words  | 2 Pages

    The Constitution guarded against tyranny through Separation Powers. Separation Powers divides power between 3 branches. Each branch has a different job. Doc B is a piece

    Read More

  • Why Did Colonial Representatives Meet In Philadelphia For The First Continental Congress

    1425 Words  | 6 Pages

    The “necessary and proper clause” would give Congress the power to create laws that were “necessary and proper” to help with their responsibilities. 12. List the major points of Article II of the Constitution. Article II gives the President of the United States the power to execute the laws of the nations. It also states the president’s term of office being limited to four years, the electoral college’s role in the elections, and the requirements for running for the presidency.

    Read More

  • Checks And Balances: Similarities Of Texas And United States Constitution

    836 Words  | 4 Pages

    Because the separation of powers was created, there need to be a way for no branch to become too powerful. With the checks and balances system, “each branch

    Read More

  • How Did The Constitution Change The Policy Of Checks And Balances

    792 Words  | 4 Pages

    The judicial and legislative branches posses a power of their

    Read More

  • Income Smoothing Case Study

    1491 Words  | 6 Pages

    The fraud triangle is made up by three distinguished elements. These elements in the fraud triangle consist of pressure, opportunity, and rationalization. The overall representation of the fraud triangle can be seen as the specific model to spot any type of high-risk unethical and fraudulent performances being conducted by a company, in this case Cendant Corporation. Cedant Corporations actions can be analyzed by the fraud triangle by the way that their senior management/top management decisions fell into the three categories of pressure, rationalization, and opportunity. Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image.

    Read More

  • What Does Federalist # 51 Mean In Chapter 51

    710 Words  | 3 Pages

    2- The constitution of the judiciary department might be inexpedient to insist rigorously on the principal. The system of checks and balances is one of the big ones. This gives all 3 branches of government about the same power but over certain things. They are all ruled over

    Read More

  • Essay On Fiduciary Duty

    1765 Words  | 8 Pages

    In brief, they must conduct reasonable research before making corporate decisions, and must not prioritize private interests. Key fiduciary obligations of corporate directors: Corporate directors must pursue the best interests of the “corporate person,” serving as “trustees” of the stockholders. This requires the fulfillment traditional duties

    Read More

  • Milton Friedman's Views On Social Responsibility Of Business

    1245 Words  | 5 Pages

    Social responsibility of business has been a debated topic for years. The ideas of different businessmen have had effects on the direction of business in this period. This essay analyses two texts, which have Milton Friedman’s arguments about social responsibility of business and John Friedman’s ideas about Milton Friedman’s, by comparison and contrast method and includes this writer’s evaluation. Milton Friedman’s text is about the effects of the name of social responsibility on a private property system including executives, stockholders, employees and customers. He gives us some assumptions and examples of their potential results and impacts on corporations to express his ideas clearly.

    Read More

  • Shareholder Wealth Case Study

    1954 Words  | 8 Pages

    Mergers and Acquisitions and Shareholder Wealth: The theory of finance states that maximization of shareholder wealth should be the goal of every business organization. It is not clear, however, whether maximization of shareholder wealth is the main motivation behind Mergers and acquisitions. This has generated a lot of research interest the area. Unfortunately decades of intensive research have not been able to conclusively establish the impact of Mergers and acquisitions on shareholder wealth.

    Read More

  • IT Infrastructure Audit Case Study

    2512 Words  | 11 Pages

    The first step that the auditor should take is to gather as much information about any security procedures and policies that may have been in use following the information collected from the records available. Since each policy may have a different aspect that it works on, the findings from the audit may present evidence that may be vital in identifying the existing procedures or the absence of any policies or procedures. The existence of policies and procedures enables a company to reduce the occurrence or the impacts of a given risk. The lack of such policies may lead to reduced risk management

    Read More

  • Tesco External Factors

    3270 Words  | 14 Pages

    Every stake holders has its own needs and demands from the organization. Every stakeholder which are directly attached to the company requires the information as it required and his role. These are the persons, groups or other company which have legitimate interest in the company and its functions. These persons or the group directly or indirectly communicate with the company. Stake holder analysis is done below to understand the needs and demands of the stakeholders.

    Read More

  • Southwest Airlines Management Accounting System

    1505 Words  | 7 Pages

    Introduction: Here in this assignment a management accounting report needs to be prepared for analyzing how management accounting can be useful in providing the managerial information for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation southwest aircrafts persistently succeed regarding productivity, great worker and union connection and consumer loyalty.

    Read More

  • Ethical Issues In Child Labor

    2393 Words  | 10 Pages

    Here you look on the difference between benefits and harms for the society and if the benefits are greater than the decision or an action is considered as ethical, if lower – unethical. Here it is important to identify the stakeholders and an effects on them from actions or decisions of a company. “You can think of a stakeholder as a person or organization that can affect or be affected by your organization. Stakeholders can come from inside or outside of the organization. Examples of stakeholders of a business include customers, employees, stockholders, suppliers, non-profit community organizations, government, and the local community among many others.”

    Read More

  • Importance Of Accounting Information System

    925 Words  | 4 Pages

    Accounting information system has many functions in management and the importance. The most important is with wide-spread automatization can relate to accounting work processing. Accounting software packages have many software programs for supporting book-keeping, reporting, recording economic events or processing. Accounting software packages can support the activity of the enterprise for to update and integrated information system. Besides, the definition of accounting is as a system at the micro level that have process, procedure, rule and activities of an information system that need follow by the success of the enterprise to achieve the goals.

    Read More

  • Role Of Corporate Governance In Nestle

    1346 Words  | 6 Pages

    A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that

    Read More

More about King IV Report: Corporate Governance

Open Document