Written by Dr. Adv. Leigh Hefer & Jayne Hunter-Rhys. COMPANY SECRETARY’S HANDBOOK (2021). Published by Genesis Corporate Services.
- Yes. Part 6.5 of King IV™ is a Sector Supplement for Small and Medium Enterprises. For the purposes of this Supplement of King IV, a small and medium enterprise (SME) is defined as a private, for-profit company that has a PI Score of at least 350 calculated in terms of companies regulation 26(2).
- Principle 10, Part 6.5 of King IV™ recommends that the board should ensure that the appointment of and delegation to management contribute to role clarity and the effective exercise of authority and responsibilities.
- The practices under Principle 10 are pertinent in helping small and medium enterprises to attain clarity on the respective roles of the board and management, and Principle 10 recommends that the boards of small and medium enterprises should apply these practices to achieve this aim.
- Under Principle 10 it is furthermore recommended that the board of a small and medium enterprise should ensure that it has access to professional and independent guidance on corporate governance and its legal duties and also that it has support to coordinate the functioning of the board and its committees.
- For companies, this role is fulfilled by the company secretary. As a matter of leading practice, it is recommended that boards of small and medium enterprises appoint a company secretary to provide these services.
Source: Companies Regulation 26(2); Principle 10: Appointment and Delegation to Management, Part 6.5 of King IV: Sector Supplement for Small and Medium Enterprises™; © The Institute of Directors in Southern Africa (IoDSA)
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