Business Day
Business Times
Business Report
Boardroom

KING III DEMANDS GOVERNANCE PROFESSIONALS UP TO SCRATCH

With the spotlight on corporate governance ahead of the King III Report (“King III”) to launch on 1 September,  Chartered Secretaries Southern Africa – the Institute representing the premier governance professionals in the region (“the Institute”) - today commented to industry on the ‘brave’ new era for company secretaries heralded by King III and next year’s new Companies Act.  Together the regulations demand of governance professionals broad shoulders to bear a heavier responsibility for transparency, accountability and integrity. 

The Institute is the qualifying body for the crème of governance professionals, Chartered Secretaries, offering the only international governance qualification recognised in more than 70 countries.  It is a division of the global Institute of Chartered Secretaries and Administrators (ICSA) which has more than 35 000 members and 27 500 students worldwide. 

CEO of the Institute, Stephen Sadie, says the new regulations take account of a rising number of corporate governance crises which have highlighted the role of governance professionals supposed to be steering organisations clear of transgressions.  He cites as examples Enron and WorldCom and closer to home, Regal Bank and LeisureNet. 

At a recent talk Mervyn King, Chairman of the King III Committee, said the new governance professionals will have to be “very brave.”  They will need to not only advise but also challenge directors on corporate governance issues. 

King III recommends that only a ‘competent, suitably qualified person’ should be appointed to guide corporate governance for the state or private business, while the new Companies Act (to come into effect in mid-2010) elaborates a governance professional to be a ‘ person knowledgeable or experienced in relevant laws’.  

Sadie says: “Chartered Secretaries may be the only truly appropriate professionals who fit the demands of King III and the new Companies Act.” 

Jill Parratt, President of the Institute (and current Group Secretary of Liberty Holdings) explains that in light of stringent application criteria, the title ‘Chartered Secretary’ is a mark of distinction from other governance professionals and offers an assurance to public and private sector that the person to whom they entrust their business practice is worthy of the responsibility.  She says: “Membership of the Institute, and therefore the right to use the title ‘Chartered Secretary’, is not automatic.  It is earned, not bought as it is conferred at the discretion of the Institute directors in recognition of the applicant fulfilling onerous criteria.” 

In addition to post graduate academic qualifications including the Institute’s rigorous board exam, at least six years’ work experience in corporate governance is required to become an Associate Member at which point the candidate becomes a ‘Chartered Secretary’.  Senior membership, or Fellowship, demands a minimum of eight years’ corporate governance experience, at least three of which must have been served in a position of seniority.

Parratt adds that the Institute offers employers ‘watchdog’ accountability in the governance environment where Chartered Secretaries are concerned.  “Employers have recourse to the Institute in the event of incompetence of any Chartered Secretary.  We will launch disciplinary proceedings which could result in disbarment from the profession,” she says.

In order to ensure that Chartered Secretaries remain abreast of regulatory changes and global best practice, the Institute offers Continuing Professional Development courses and ongoing technical support packages including twice monthly email red flag notifications, monthly updates and best practice manuals. Chartered Secretaries also have constant access to a dedicated Technical Advisor onsite at the Institute. 

Further, the Institute hosts the leading annual conference on corporate governance in Africa open to all governance professionals irrespective of whether Chartered Secretaries.  This year the two-day event featuring prominent speakers from companies and associations around the world will be held at the Sandton Convention Centre on 10 and 11 September. Sadie says: “The Conference has international recognition with keynote speaker Philip Armstrong, who is Head of the Global Corporate Governance Forum based in Washington.”

ICSA is headquartered in London with additional divisions across the globe in Australia, Canada, Hong Kong, Malaysia, New Zealand, Singapore and Zimbabwe. The Institute represents South Africa, Botswana, Lesotho, Namibia and Swaziland.  Members (who are all Chartered Secretaries) work in public and private companies, corporate secretarial firms, legal practices, international accounting firms, tertiary institutions and the public sector.

Ends.

Issued by: Envisage Communications
Nicole Katz/Michele Mackey
(011) 325 5944/082 497 9827

On behalf of: Chartered Secretaries Southern Africa 
Stephen Sadie, CEO 011 403 7953/ 079 494 2169
AND
Jill Parratt, President

Issue date:  26 August 2009

OPPORTUNITY FOR SOUTH AFRICA TO TAKE CORPORATE GOVERNANCE SERIOUSLY
Chartered Secretaries Southern Africa will be giving organisations in Southern Africa the opportunity to beef up their corporate governance knowledge with the Premier Conference on Corporate Governance, to be held at the Sandton Convention Centre on 10 & 11th September.

Chartered Secretaries Southern Africa  is  a leading learning institute for Company Secretaries and Corporate Governance professionals  and is hosting this conference as part of their 100 year celebration. “The timing for our conference is on target with King III being launched this year", says CEO, Stephen Sadie, “and the conference will cover many other important aspects of corporate governance including; corporate social investment , audits, human capital issues, international corporate governance trends, corporate governance in Africa“.

"We are delighted with the response the conference is having", says Sadie, "resulting in us securing many prominent speakers on the subject. These include Philip Armstrong, head of the  Global Corporate Governance Forum (World Bank); Dr Azar Jammine, Director of Econometrix; Clem Sunter;  Freeman Nomvalo, Accountant General of National Treasury and Lindie Engelbrecht, CEO of the Institute of Directors". 

"Although not wholly responsible poor corporate governance could have played a role in the current global economic  meltdown. Therefore Chartered Secretaries Southern Africa is hosting this conference at a critical time to stimulate discussion on Corporate Governance in Southern Africa" Sadie comments.  
Details can be obtained from the website www.ciscorpgov.co.za