What is Corporate Governance
Corporate governance in South Africa requires compliance with the Companies Act, 2008, and other legislation together with the application of the King IV™ Code of Corporate Governance.
Together, the legislation and the corporate governance code establish guidelines and principles for ethical and effective corporate behaviour, ensuring transparency, accountability, and sustainability in business practices.
Confidence.
Integrity.
Ethics.
These are just some of the traits of a dedicated governance professional.
Corporate governance, outlined in King IV™, has certain inherent basic principles that ensure proper business management.
Sound corporate practices
Accountability
Sustainability
Transparency
Corporate governance is a multi-disciplinary business imperative that can be broken down into discrete components:
- Independent Board Composition: Ensuring a balanced mix of independent non-executive and other non-executive directors for effective oversight.
- Transparency in Reporting: Providing timely, accurate disclosure of financial and non-financial information to stakeholders.
- Effective Risk Management: Implementing robust systems to identify, assess, and mitigate risks within the organization.
- Accountability and Evaluation: Holding leaders accountable through regular performance evaluations and oversight.
- Ethical Culture: Promoting integrity, ethics, and corporate social responsibility at all levels of the organization.
- Sustainable Value Creation: Integrating ESG considerations into business strategies for long-term value creation.
- Stakeholder Engagement: Engaging with all stakeholders to understand their needs and expectations in decision-making.
Companies that support good governance
The Governance professional’s title
The CGISA caters to all types of governance professionals with the choice of two chartered routes, namely:
- Chartered Secretary – for company secretaries
- Chartered Governance Professional – for other governance professionals.
Both chartered designations enable professionals to serve as governance professionals within an organisation, irrespective of their specific titles.
A “chartered” designation is used to indicate professional competence. This status is awarded to skilled or qualified individuals in a particular field of work.
The governance professional can hold different titles, depending on the organisation’s requirements. You may be called company secretary, risk manager, compliance officer, legal counsel, financial manager, or governance adviser. The title will vary depending on the circumstances of each entity.
Several designations are associated with membership of the Institute. Depending on the applicant’s qualifications and experience, they can apply for Graduate, Associate or Fellow membership and make use of the associated designations:
- Graduate of Chartered Governance Institute
- Completed Board Level (NQF 8) qualification in either the Company Secretary or Governance Professional routes
- Associate of Chartered Governance Institute
- Completed Board Level (NQF 8) qualification in either the Company Secretary or Governance Professional routes
- 3-6 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
- Associate of Chartered Governance Institute (Chartered Secretary)
- Completed Board Level (NQF 8) qualification in the Company Secretary route
- 3-6 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
- Associate of Chartered Governance Institute (Chartered Governance Professional)
- Completed Board Level (NQF 8) qualification in the Governance Professional route
- 3-6 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
- Associate of Chartered Governance Institute (Chartered Secretary, Chartered Governance Professional)
- Completed Board Level (NQF 8) qualification in both the Company Secretary and Governance Professional routes
- 3-6 years relevant work experience in accordance with the Charter and byelaws
- Approval required from the CGISA Membership Committee
- Associate of Chartered Governance Institute (Accountant)
- Completed Board Level (NQF 8) qualification with required accounting modules
- 3-6 years relevant work experience in accordance with the Charter and byelaws
- Approval required from the CGISA Membership Committee
- Fellow of Chartered Governance Institute
- Completed Board Level (NQF 8) qualification in either the Company Secretary or Governance Professional routes
- 5-8 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
- Fellow of Chartered Governance Institute (Chartered Secretary)
- Completed Board Level (NQF 8) qualification in the Company Secretary route
- 5-8 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
- Fellow of Chartered Governance Institute (Chartered Governance Professional)
- Completed Board Level (NQF 8) qualification in the Governance Professional route
- 5-8 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
- Fellow of Chartered Governance Institute (Chartered Secretary, Chartered Governance Professional)
- Completed Board Level (NQF 8) qualification in both the Company Secretary and Governance Professional routes
- 5-8 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
- Fellow of Chartered Governance Institute (Accountant)
- Completed Board Level (NQF 8) qualification with required accounting modules.
- 5-8 years relevant work experience in accordance with the Charter and byelaws
- Application approval is required from the CGISA Membership Committee
“At its simplest level, corporate governance can be described as the system by which organisations are directed and controlled.”
– Sir Adrian Cadbury (UK, Commission Report: Corporate Governance 1992)
How is Corporate Governance practised in South Africa?
The King IV™ Report contains principles and recommended best practices to ensure an organisation exists and operates as a good corporate citizen. Company law requires the board to always act in the organisation’s best interests. It requires all directors to act with the necessary skill, care, and diligence, and within their fiduciary duties.
King IV™, as does the law, promotes good corporate governance in South Africa. It can be said with certainty that good governance and the law go together. Courts are required to further the common law and, in this way, are likely to consider the recommended practices contained in King IV™ as courts rely on the provisions of King IV™ in their judgements, resulting in the principles of King IV™ becoming included in our common law.
The responsibilities of directors are emphasised in King IV™, with the focus of King IV™ being aimed at the governing body. An environment of practical and ethical leadership is promoted in King IV™. Principles associated with ethical leadership include integrity, competence, responsibility, accountability, fairness, and transparency.
What are your career options?
Various career options can be pursued.
Company secretary
Corporate governance officer
Risk manager
Internal auditor
Legal counsel specialising in corporate law
Ethics and compliance manager
Investor relations manager
Non-executive director
Which chartered designations should you know?
A chartered designation for a member of CGI typically refers to being a Chartered Governance Professional (CGP) or a Chartered Secretary (CS). This designation is granted by the Chartered Governance Institute of Southern Africa (CGISA). Chartered Governance Professionals are recognised for their expertise and qualifications in corporate governance, company law, compliance, and related fields.
The activities of the governance professional encompass legal and regulatory duties as well as obligations and additional responsibilities assigned by the employer. These professionals are highly skilled and respected professionals who perform their administrative roles at an executive level. They are the primary source of advice on governance to their board and senior professionals trained in law, finance, governance, risk, and strategy.
What skills do governance professionals have?
Governance professionals exhibit certain key attributes and skills.
- A keen interest in business and the legal and regulatory environment within which it operates.
- The confidence to communicate with and influence stakeholders at all levels, including board members and shareholders.
- Strong strategic instincts.
- Impeccable organisational skills.
- An ability to absorb and digest technical knowledge.
- The ability to focus on detail and work to a high level of accuracy, while balancing competing priorities.
- Highly developed numeracy and literacy skills.
- Well-developed integrity and a belief in the importance of transparency.
- A high EQ and strong “soft skills” such a diplomacy, tact, trustworthiness, and conflict management.
- A keen eye for detail ensuring accuracy and thoroughness in documentation, reporting and compliance activities.
Why become a CGISA member?
Becoming a CGISA member ensures you’ll remain at the forefront of global developments and best practices in corporate governance. You can become a CGISA member by passing the Board examinations and applying for membership as:
- A Graduate of the Institute (GradCG)
- An Associate of the Institute (ACG)
- A Fellow of the Institute (FCG)
By studying with us and becoming a member, you gain access to a comprehensive suite of benefits.
Ongoing professional development
Ongoing professional development
Our continuous professional development (CPD) approach includes upskilling and networking opportunities that will equip you for an ever-changing business context.
Preferential rates
Preferential rates
Get special membership and retiree rates on conferences and CPD webinars and seminars.
Communication
Communication
Keep up to date on all governance-related developments via our communication channels, including regular newsletters and our eZine and quarterly Boardroom journal.
Recruitment assistance
Recruitment assistance
We help companies and Governance Professionals match their needs and specialised skills with the right recruitment opportunities.
Technical support
Technical support
Access a technical manual and technical adviser for any assistance with governance, legal, and tax queries.
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