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 the comply with King Code principles.

The amended guidelines are available here. The previous version of the JSE Listing Requirements (a latest version with the recent amendments has not been published yet) is available here.

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 could apply it or explain why they had not applied it. 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.

Note: Copyright and trademarks for the King III™ and IV Report on Corporate Governance™ are owned by the Institute of Directors in Southern Africa. All views are our own and we are not endorsed in any way by the Institute of Directors in Southern Africa.