King III sets out the roles & functions of the Board, and recommends that the Board should, amongst other (Adapted from king III):

  • Be the custodian & act as the focal point of corporate governance where the Board & its directors act in the best interests of the company.
  • Understand the inter-connectedness of strategy, risk, performance & sustainability which are inseparable
  • Be responsible for the governance of risk & information technology (IT)
  • Provide effective leadership based upon an ethical foundation, which is seen to be a responsible corporate citizen
  • Ensure the company manages its ethics effectively
  • Ensure the company has an effective & independent audit committee
  • Ensure there is an effective risk based internal audit
  • Ensure the company complies with applicable laws , whilst considering adherence to non-binding rules, codes & standards
  • Ensure the integrity of the company’s integrated report, further observing the stakeholder’s perceptions that affect the company’s reputation
  • Report on the effectiveness of the company’s system of internal controls.

The Board provides & directs the company in terms of its strategy, purpose, values & standards. The Board:

  • Ensures there is business growth to survive & thrive
  • Is ultimately accountable & responsible for the performance (performance includes financial & non-financial aspects) & affairs of the company
  • May not discharge its responsibility by delegating authority to Board committees or management
  • Selects / appoints a CEO & ensures succession planning
  • Ensures that a leadership pipeline is developed
  • Provides guidance regarding the appointment of senior executives
  • Retains full control over the company
  • Reviews executive management’s activities & execution of the Board’s plans & strategies
  • Ensures executive management implements the company’s strategy against established procedures & practices which protect the company’s assets & reputation
  • Ensures that the technology & systems used in the company are adequate to run the business properly & for it to compete through the efficient use of its assets, processes & human resource
  • Identifies key risk areas that may affect the company with counter measuring
  • Develops key performance indicators to generate economic profit, increased shareholder value in  the long term.