The King Report on Corporate Governance for South Africa

The HEA constitutes the principal legal framework for a council’s operation. However, like all other corporate entities in South Africa, the Council is also deemed to operate within the framework of the South African Constitution and is held to “best corporate practice” standards as enunciated in the King Report 2002 and the Code of Corporate Practices and Conduct (the King Code 2002).

The King Report 2002 emphasises the importance of striking a balance between
“performance” (i.e. decisions and actions designed to ensure the creation and
protection of value) and “conformance” (i.e. the demonstrable adherence to due process in coming to such decisions and taking such actions).  In a corporate context, this means that the exercise of management’s skill, expertise and flair in running business operations and creating shareholder value should be encouraged, but must be subject to appropriate checks and balances that allow Council to ensure that management is at all times acting in the interests of the organisation and its
shareholders.

Corporate governance represents a collection of broad principles and practices for
the efficient, effective and profitable running of an organisation in pursuit of strategic
objectives and in compliance with principles of best business practice and applicable
legal and regulatory requirements.

By applying the principles and practices of the King Report 2002 to Unisa, this means
the following:

Council responsibilities
Council members’ duties
Code of Ethics
Key focus of good governance

Approved - Management Committee -  17.01.06
(c) 2006 UNISA