What is King III ?

What is King III?

We hear a lot about King III in the press today, but just What is King III?

KING III is arguably the world’s leading corporate governance standard

KING III  is the term used to refer to both “The King Report on Corporate Governance for South Africa (The Institute of Directors in Southern Africa) September 2009” and “The King Code on Corporate Governance for South Africa (The Institute of Directors in Southern Africa) September 2009”.

KING III was effective in SA from 1 March 2010 and applies to all entities regardless of the manner incorporation

KING III will be superseded by King IV on 1 November 2016

King III is divided into 9 topics / chapters

  1. Ethics & corporate citizenship
  2. Boards & director governance
  3. Audit governance
  4. Risk governance
  5. IT governance
  6. Compliance
  7. Internal audit
  8. Stakeholders
  9. Integrated reporting

What does King III have that King II didn’t?

  1. King III principles apply on an “apply or explain” basis – NOT on a “comply” basis
  2. Is applicable to all entities and not only listed companies
  3. Information Technology Governance
  4. Business Rescue (recommendations for economically viable companies in financial difficulties)
  5. Fundamental and Affected transactions (mergers acquisitions amalgamations)

What international trends does King III pick up on?

  1. Alternative Dispute Resolution (“ADR”, mediation, conciliation arbitration)
  2. Non-Exec remuneration requiring shareholder approval
  3. Evaluation of directors and Board performance
  4. Risk-based internal audit
  5. Integrated Reporting (reporting on more than just the financial results)
  6. Stakeholder focus (broader consideration than the traditional shareholders)
  7. Social, Environment and Economic principles (People, Planet, Profit)
NOTE: The comments in this page are to be read within the context of the candor legal notices which can be found at this web siteThe Institute of Directors in Southern Africa’s ownership of the copyright in the publications “The King Report on Corporate Governance for South Africa (The Institute of Directors in Southern Africa) September 2009” and “The King Code on Corporate Governance for South Africa (The Institute of Directors in Southern Africa) September 2009”  is hereby acknowledged.


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