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.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/1017 |
| Date | 03 1900 |
| Creators | Le Roux, Francois |
| Contributors | Malan, Daniel, University of Stellenbosch. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 81 pages |
| Rights | University of Stellenbosch |
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