The applicability of the third King report on corporate governance to small and medium enterprises

Autor: Le Roux, Francois
Jazyk: angličtina
Rok vydání: 2010
Předmět:
Druh dokumentu: Diplomová práce
ISSN: 12894761
Popis: Thesis (MBA (Business Management))--University of Stellenbosch, 2010.
ENGLISH ABSTRACT: The third King Report on Corporate Governance, commonly referred to as King III, was released during September 2009. This was the first of the three released King Reports that apply to all entities regardless of the manner and form of incorporation or establishment. The purpose of the King Reports is to promote the highest standards of corporate governance in South Africa. The King Code is not an enforceable set of rules, but rather guidelines to assist companies in implementing principles of good governance and ultimately best business practices. Statistics indicate that Small and Medium Enterprises (SMEs) perform an indispensable role in a country’s economy. Given the significance of these enterprises it becomes fundamental to understand the role that corporate governance and corporate governance practices play within SMEs. The goal of this research report is to conduct an investigation into the applicability of King III, considered to be the leading authority on corporate governance within South Africa, to SMEs. The various principles of King III were extracted to determine to what extent they are applicable to the SME environment. It follows that the King III Report (including the Draft King III Report) is the primary source of literature used throughout the research report. The research report includes a brief review of the development of the King Reports from King I to King III and SMEs and corporate governance from a national and international perspective. The supposition is that most of the principles as outlined by King III would be applicable to all businesses and therefore all SMEs. The research report aims to marry the two concepts of corporate governance and SMEs as far as possible. The review of the various principles confirmed the supposition that the majority of principles of King III apply to SMEs. The study also confirmed that a number of principles only apply to so-called large SMEs and that smaller SMEs would simply not be able to justify the fulfilment thereof. A number of codes and principles only apply to businesses operating in ‘companies’ as legal entities and hence are not applicable to all SMEs. Various recommendations are made with reference to the adoption and customisation of specific principles by SMEs. The writer furthermore recommends that there may well be scope to compile a corporate governance code specifically addressed to SMEs in South Africa. Such a code may incorporate the unique dynamics of the SME environment and address the specific criteria and needs within SMEs.
AFRIKAANSE OPSOMMING: Die derde King Verslag oor Korporatiewe Beheer wat algemeen bekend staan as King III, is tydens September 2009 vrygestel. Hierdie verslag was die eerste van die drie King Verslae wat van toepassing is op alle entiteite ongeag vorm van inkorporasie. Die doel van die King Verslae was en is steeds om die hoogste standaarde van korporatiewe beheer in Suid-Afrika te vestig. Die King Kode is nie ‘n afdwingbare stel reëls nie maar eerder riglyne wat hulp verleen aan besighede vir die implementering van beginsels van goeie korporatiewe beheer en besigheidsgedrag. Statistiek toon dat Klein en Medium Ondernemings (KMOs) ‘n onontbeerlike rol vervul in die ekonomieë van lande. Gegewe die belangrikheid van KMOs in die ekonomie is dit van fundamentele belang om te verstaan watter rol korporatiewe beheer en goeie korporatiewe beheer beginsels in KMOs speel. Die doel van hierdie navorsingsverslag is om te bepaal wat die toepaslikheid van King III, wat algemeen as die leier van korporatiewe beheer in Suid-Afrika aanvaar word, op KMOs is. Die onderskeie beginsels en riglyne van die King III Verslag word ontleed om te bepaal in watter mate hierdie riglyne en beginsels van toepassing is vir die KMO omgewing. Dit volg dat die King III Verslag (asook die Konsep King III Verslag) deurgaans as primêre bron gebruik word. Die navorsingsverslag sluit ‘n kort oorsig van die ontwikkeling van die King Verslae, vanaf King I tot en met King III, in. Verder word ‘n oorsig van KMOs en korporatiewe beheer op ‘n nasionale en internasionale grondslag bespreek. Die veronderstelling is dat die meeste van die riglyne en onderliggende beginsels, soos uiteengesit en beskryf in King III, van toepassing is op alle besighede, derhalwe ook KMOs. Die navorsingsprojek het ten doel om die konsepte van korporatiewe beheer en KMOs te vereenselwig so ver prakties moontlik. Die oorsig van die onderskeie riglyne en beginsels bevestig die vermoede dat die meerderheid van die riglyne en beginsels van King III van toepassing is op alle KMOs. Die studie bevestig ook dat ‘n aantal riglyne en beginsels slegs van toepassing is op sogenaamde groot KMOs en dat klein KMOs waarskynlik nie die toepassing daarvan sal kan regverdig nie. Sekere riglyne en beginsels is slegs van toepassing op KMOs wat as ‘n maatskappy as regsentiteit funksioneer en derhalwe nie van toepassing op alle KMOs nie. Verskeie aanbevelings word gemaak met betrekking tot die toepassing van spesifieke riglyne en beginsels deur KMOs. Die skrywer beveel verder aan dat daar ruimte is vir die ontwikkeling van ‘n korporatiewe beheer kode wat spesifiek gemik is op KMOs in Suid Afrika. Hierdie kode kan die unieke dinamika van die KMO omgewing inkorporeer en spesifieke kriteria en behoeftes van KMOs aanspreek.
Databáze: Networked Digital Library of Theses & Dissertations
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