King V Draft Code Open for Public Comment
The latest draft of the King Code on corporate governance, known as King V, is now open for public comment until 4 April 2025. This updated version, released by the King Committee and the Institute of Directors in South Africa (IoDSA), reflects key local and global developments since King IV was introduced in 2016.
What’s New in King V?
While the fundamental principles of King IV remain intact, the new Code will continue to extend beyond listed companies, encompassing state-owned enterprises, local government, non-profits, SMEs, and institutional investors such as pension funds and life insurers.
Key Changes in King V
King V builds on its predecessor but introduces major updates to make governance simpler, clearer, and more effective for all types of organisations. Here’s what’s new:
Streamlined Governance Principles
The number of principles has been reduced from 17 to 12 for easier interpretation and implementation.
Improved Clarity and Usability
The Code is now written in plain language to make it more accessible and understandable.
Updated Disclosure Framework
A new standardised disclosure template improves accountability and comparability across organisations.
Stronger Emphasis on Emerging Risks
Climate change, sustainability, and technological advancements (AI, cybersecurity, data governance) are now key governance considerations.
Revised Approach to Reporting
The standard now requires double materiality, ensuring sustainability disclosures consider both financial and impact materiality.
Simplified Governance Oversight
The risk and compliance principles have been merged, and the governing body’s role in technology governance has been strengthened.
More Inclusive Governance
The new Code applies broadly to state-owned enterprises, non-profits, SMEs, and institutional investors like pension funds and insurers.
Why This Matters
Corporate governance is key to strengthening institutions and ensuring transparency and accountability. Public input will help shape a governance framework that is practical, relevant, and effective for all organisations.
Provide Your Comments
The consultation process is open for everyone. Review the King V Code Draft with accompanying Glossary and Disclosure Template and submit your input to us before 26 March 2025 via email to technical@myciba.org.
