THE code of corporate practice and conduct set out by the King report applies to all listed companies, large public entities, banks, financial and insurance companies, large unlisted companies, and large unlisted quasi-state entities such as control boards and co-ops.
Key recommendations of the code are that each company subscribing to the code should:
* Have an affirmative action programme.
* Have a balanced board, with at least as many, if not more, non-executive as executive directors. The chairman should be independent and preferably non-executive, unless the board does not consider this in the company’s interests.
* Develop, publish and enforce its own code of ethics.
* Have its own internal audit.
* Have a statement in the annual report that the directors have no reason to believe the business will not be a going concern in the forthcoming financial year. If they do have any concerns, these should be disclosed.
* Disclose the total remuneration of non-executive and executive directors separately, including salary, fees, benefits, share options and bonuses.
* Have audit and remuneration committees, chaired by non- executive directors and with a majority of non-executive directors.