King V Is revolutionising governance and restoring trust

The publication of the King V Code on Corporate Governance for South Africa 2025 ('the Code') marks more than just an update - it signals a profound philosophical shift. This new Code is engineered to restore and solidify stakeholder trust by providing verifiable assurance that companies are led with integrity and are effectively managed. It is a powerful move designed to drive transparent, long-term governance impacts and fundamentally end the era of "tick-box" compliance.

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While a compliance approach provides essential governance to meet legal and regulatory requirements, it often creates a false sense of control (for the board and management). Over time, this rules-based focus can erode self-regulation and ownership, creating a culture where rationalisation replaces critical thinking and accountability.

Effectively, King V demands that organisations move from compliance to conscience. Decision-making must be underpinned by integrity and remain aligned with the organisation's purpose, vision, and values, forcing directors to demonstrate they take their fiduciary duties seriously.

The death of tick-boxing

The core architecture of King V is built to dismantle mindless compliance.

Its focus is simple:

Outcome accountability, integrity foundational

King V is fundamentally an outcomes-based framework. It reduces the number of principles and shifts the focus squarely onto consequences. A company cannot claim good governance simply by having a policy.

Four key governance outcomes must be realised:

Ethical culture

Are ethical behaviours and integrity observable throughout the organisation, informing every decision?

Performance and value creation

Is the company creating and sustaining value in a responsible manner that considers the interests of all stakeholders?

Conformance and prudent control

Are risks managed and is compliance effective, ensuring the board operates within its legal and ethical mandate?

Legitimacy