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 has now 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.
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.
To read the King Code principles click here.
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