Reflections on the Draft King V Code on Corporate Governance for South Africa
I recently had the opportunity to review the Draft King V Code on Corporate Governance for South Africa (“Draft King V Code”), despite my very busy schedule being the bootleg version of Harvey Specter :/, and I must commend the drafters for developing a progressive framework that meaningfully integrates African values into our corporate governance landscape.
Most notably, the explicit recognition of Ubuntu as a foundational tenet is a welcome development. It represents a decisive shift toward a governance culture that acknowledges South Africa’s unique socio-cultural context. The philosophy of Ubuntu aligns closely with the principle of sustainable development, reminding us that companies, as corporate citizens, bear a responsibility not only to their shareholders but to the societies and environments in which they operate.
The Draft King V Code reinforces that sound governance is not achieved through a checklist mentality. It is outcome-based, focusing on whether an organisation, when viewed holistically, evidences a culture of good governance. It departs from rigid application in favour of substance over form.
Another important evolution is that the Draft King V Code’s is drafted to be universal applicable. Unlike its intended predecessors, the Draft King V Code is intended to be relevant and implementable by all types of organisations—large or small, listed or non-listed, public or private. This marks a significant shift from King IV™, which in some instances presented impractical expectations for smaller organisations. The Draft King V Code aims to be more inclusive, with governance principles that are both scalable and contextually adaptable.
Furthermore, the introduction of a standardised Disclosure Template underpins the Code’s “apply and explain” approach. This encourages transparent and meaningful disclosure, prompting organisations to articulate how their practices support the principles and intended outcomes of the Draft King V Code. It is an important tool to drive substantive compliance and enhance stakeholder confidence.
In a world of rapid technological advancement and growing socio-economic complexities, the Drat King V Code addresses key contemporary issues such as information governance, emerging technologies like AI, and integrated risk and compliance oversight. It reflects a maturing governance framework responsive to both local and global imperatives.
As the comment period for the Draft King V Code closed on 4 April 2025, one is left both hopeful and intrigued about how the invaluable insights submitted will inform the final iteration of the Draft King V Code. What emerges from this draft shall not merely be a technical governance framework, but a thoughtful blueprint that seeks to recalibrate corporate conduct through an authentically African lens and a leading document in corporate governance.
The deliberate anchoring of the Draft King V Code in the philosophy of Ubuntu is particularly commendable. It offers a moral compass, reminding us that accountability, inclusivity, and mutual respect are not abstract ideals but lived values that should guide the decisions and behaviours of all organisations. Indeed, the envisaged King V Code represents a welcomed evolution in our governance journey. I look forward to its eventual publication and the possibilities it holds to advance a more ethical, responsible, and contextually grounded governance culture in South Africa.