South Africa has been at the forefront of the development of corporate government principles with the publication of the first “King Report” in the early 1990s. This was followed by King II in 2002, which has been adopted as mandatory by the Johannesburg Stock Exchange (JSE). Other institutions have relied heavily on the principles espoused in the report, but compliance is voluntary. In the public sector, there is a Public Finance Management Act (PFMA). State-owned enterprises are also guided by a “Protocol on Corporate Governance,” which is closely aligned to the King II report.
South Africa has a well-developed body of company law and generally strong institutions. Regulatory and competition bodies are in a developing stage and rulings and legal judgements are establishing precedents.
Black Economic Empowerment (BEE) is a unique feature of South Africa . BEE compliance (see www.dti.gov.za ) is an attempt by the government to reverse the past intentional discrimination against the non-white population which had the effect of restricting their access to business and commerce, education and economic opportunities. South African corporates and others must observe the criteria specified in the various “sector charters.”
The 2006 version of the Toolkit is now available. It has been improved with the addition of the Diagnostic Assessment, including linked references to the OECD and Commonwealth Guidelines, thus providing a broader scope of corporate governance practices and rationale.
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PGi has worked with closely with Ingeniso Business Intelligence [ www.ibimedia.com ] to develop a business information and intelligence “pack” that will assist the company director to stay on top of information affecting his or her business and industry, as well as political and economic factors that impact the business.
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