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?

The JSE Listing Requirements and King III™ and IV

There was much confusion whether listed companies had to comply with King III™ on governance, or they 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. The JSE published a guideline which helps to clarify the situation. The JSE’s approach is that certain principles are mandatory and must be complied with, while others are not. None of the IT Governance principles are mandatory, but some principles that have an impact on IT Governance are.

For King IV, the JSE’s guidelines still require listed companies to comply with only certain principles, but not the ones that specifically relate to IT Governance.

The latest JSE guidelines require the listed companies to include an explanation of what King Code principles they have complied with and which ones they have not.

So the answer is that listed companies must comply with some principles of King III™. But they only need to apply the IT Governance principles or explain why they are not. The full JSE report can be viewed here.

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.