There is an old saying: “In the land of the blind, the one-eyed man is king.” In business, this is especially true: the organisation that sees risks, opportunities and responsibilities most clearly has a serious advantage over those who choose to ignore governance good practices. King V, South Africa’s latest corporate governance code, is designed to help organisations see more KING V: SOUTH AFRICA’S GOVERNANCE ROADMAP WHAT IS KING V? Jean Simpson | Manager Corporate Services clearly, walk a little straighter, and avoid tripping over a hidden stump. But be warned, King V is only for the organisations who are prepared to keep at least one eye open in a world where many organisations decide to turn a blind eye on ethics and good governance. So, here is the What, the Who, the Why and the So What of King V. King V is the fifth edition of South Africa’s corporate governance guidance since the King codes were introduced in the early 90’s. It was released by the Institute of Directors in South Africa and the King Committee on 31 October 2025. It replaces King IV and applies to financial years beginning on or after 1 January 2026. King V is not a law nor is it really a “compliance code”. Compliance is often seen the minimum standard with which an organisation needs to comply. Think of King V as a forester’s map. It’s a practical tool that helps an organisation plan the best actions, nurture its trees and eventually harvest a stronger crop. At its heart, King V guides organisations to lead ethically and effectively to attain four main outcomes. Think of it in the context of managing your plantation according to good practice. 01 03 02 04 Plant the Right Foundation Follow the Rules and Standards Build the Right Team Harvest Trust and Accountability First you need to plant the best seedlings in the most suitable soil. King V promotes ethical culture through the organisation’s shared values. You need to follow the forester handbook, chain of custody practices and certification codes. King V promotes conformance and prudent control through adherence to laws, regulations and standards. Get a good forester and a strong silviculture team with the right tools. King V requires organisations to perform and create value within an economic, social, and environmental context And finally, you want to look back at your harvest and talk about a successful harvest without sounding like an election slogan. King V calls this legitimacy through stakeholder trust i.e. accountability. To attain these four outcomes, King V proposes adherence to 13 principles which is supported by 150 proposed practices. So essentially if an organisation can apply these 150 practices Appoint ethical leaders Build ethical organisations Work for sustainable value creation Report responsibly to stakeholders Have well-balanced boards Appropriate committees with delegated tasks Effective executive management teams Manage risk and opportunities strategically Adhere to laws, rules, codes and standards Use technology to attain strategic goals Fair, responsible, and transparent remuneration Strengthen Assurance and Control Prioritise a stakeholder-inclusive approach So, what are the 13 Core Principles I hear you ask. Simply put, organisations who are serious about good corporate governance: meaningfully, it would mean that you have effectively applied the 13 principles which should result in successfully attaining the four outcomes. 29 28
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