Good corporate governance affirms the board (led by the chairperson) as the focal point of governance and the courts have no mandate to undermine this principle
Authors Tsepiso Mofokeng
Affiliations: Executive Chairman, Mofisto Investments (Pty) Ltd
Source: Journal of Corporate and Commercial Law & Practice, Volume 6 Issue 1, 2020, p. 66 – 79
Corporate governance has long been endorsed globally as a key factor in the survival or success of every corporation. The failure of international companies like Arthur Anderson and Enron serves to reinforce the argument that the courts have a role to play in circumstances where the board has failed to carry out its functions. This will be argued by referring to the importance of the prescribed legislation and the King Codes, and more specifically, King IV as a watchdog of good governance, often cited in court decisions where governance is in issue. Reference will also be made to relevant case law to emphasise the role of the courts in this regard.