What do the JSE listing requirements say about the King Code? Is the King Code part of the requirements? Do listed companies have to comply with the King Code principles? Have the requirements changed since King III™ or are they still the same?
The JSE Listing Requirements and King IV
The short answer is that under King IV, the latest Code from the Institute of Directors in Southern Africa (IoDSA), the JSE requires listed companies to comply with all the latest King Code principles. For King IV, the JSE updated its listing requirements around the same time the Code was published. The amended guidelines contained in the listing requirements now require listed companies to comply with all King Code principles, including those on IT Governance. Listed companies now have to provide an explanation, in their pre-listing statements, about which practices they have in place, which help them comply with all the King Code principles.
The latest JSE guidelines require listed companies to include an explanation of how they comply with King Code principles.
The JSE Listing Requirements and King III™
There was much confusion with whether or not listed companies had to comply with King III™ on governance, or whether they had room to not apply it and then explain why they had not. Many thought that a listed company had to comply with the whole of King III™ because it was a listing requirement. That is the time when the JSE published the guideline in its listing requirements to help clarify the situation. The JSE’s approach was that certain principles were mandatory and must be complied with, while others were not. None of the IT Governance principles were mandatory, but some principles that have an impact on IT Governance were.
What is the King Code?
You can also read the King Report and King Code on Corporate Governance.
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