Earlier this week, the draft of the new version of the King Code – which positioned South Africa as a global leader in corporate governance just over three decades ago – was released for public comment. The King V Draft is a revised and streamlined update of King IV.
Sure, the King Code is a set of voluntary principles and good practices of corporate governance, but for entities with a primary listing on the JSE Limited Securities Exchange, certain aspects of King IV are binding by virtue of the listings requirements. In addition, the fact that the King Code is not legally binding in itself does not mean that there are no legal consequences arising from non-compliance. For entities bound by certain aspects of the King Code — a court will consider this code when evaluating what is regarded as practice in a particular situation, especially where governance duties are involved. Failure to meet corporate governance practice, and by implication the principles set out in the applicable King Code, may invoke liability of the board in certain circumstances.
And let’s be honest — at its core, this is simply common sense. In any sphere of life, success begins with a clear understanding of the rules and how these change over time. This is a principle we impart to our children: before you engage in any endeavour, you must first know the framework within which you operate. The same holds true in corporate governance. A board’s foremost responsibility is to ensure that an entity operates within the established legal and ethical parameters, not as a mere formality, but as a fundamental prerequisite for long-term success. Governance is not an obstacle to be navigated—it is the very foundation upon which sustainable business strategies are built. Playing within the rules is not only a matter of regulatory compliance but also of sound leadership and corporate integrity.
Afriwise offers a comprehensive suite of legal intelligence solutions that helps organisations achieve these principles and outcomes in Africa by providing:
- Comprehensive Legal Knowledge: Afriwise offers access to up-to-date legislation and regulations across multiple African jurisdictions. This aligns with King V Principle 1 (Ethical Leadership), where leadership must cultivate knowledge of relevant laws and Principle 2 (Governance of Ethics), ensuring ethical behaviour beyond mere legal compliance.
- Real-Time Regulatory Updates & Alerts: With automated alerts about new regulations and legal changes, Afriwise supports King V Principle 3 (Strategy and Performance). It allows boards to adapt strategies in real time and Principle 8 (Risk and Compliance Governance) by managing compliance risks proactively and continuously monitoring the regulatory environment.
- Practical Guidance and Expert Support: Afriwise provides expert-written articles and a Q&A feature that enables leaders to navigate complex legal matters. This aligns with King V Principle 1 (Ethical Leadership) by helping boards act with integrity and competency, and with Principle 2 (Governance of Ethics) by embedding responsible decision-making in the organization’s culture.
- Comparative Tools & Tailored Reports: Afriwise’s comparative tools allow for regulatory analysis across countries, aiding strategic decisions. This supports King V Principle 3 (Strategy and Performance), ensuring that the organization's strategy is aligned with the legal and regulatory context in multiple markets.
- Enforcement Trends & Sanctions Insights: Afriwise provides valuable information on how regulations are enforced, supporting King V Principle 8 (Risk and Compliance Governance). This feature helps organizations gauge risk appetite and integrate compliance into overall risk management strategies, ensuring Conformance with legal obligations.
By using Afriwise, organisations can seamlessly integrate trusted legal intelligence into their governance practices, aligning with the King V Code’s principles and enhancing their Ethical Culture and Legitimacy. Whether you’re managing risks, making strategic decisions, or reporting transparently, Afriwise is an indispensable tool for ensuring your organization meets the highest standards of corporate governance.
To find out more about how Afriwise can help you, speak to one of our experts!
