A number of recent corporate scandals, both locally and abroad, has again highlighted the importance of not only ethical leadership in organisations but also the need for appropriate and adequate structures, processes and procedures that provide a solid foundation upon which ethical and effective leaders can operate in furtherance of the long-term, sustainable interest of the organisation. For a board of directors to achieve the desired outcome of being in effective control of the business, these structures, processes and procedures are vital and, in fact, non-negotiable
Considering the afore going as well as the complexity and dynamics of a group of companies operating under the “watchful eye” of the board of directors of the ultimate holding company, the recommendation set out in the King IV™ Report on Corporate Governance for South Africa, 2016 for such a group of companies to be directed by an appropriate, relevant and adequate group governance framework, should be fairly obvious and need no further motivation.
Each group of companies is unique in its make-up and the specific dynamics of each group need to be carefully considered in the formulation of a group governance framework to ensure that it does not only speak directly to the attributes of the relevant group of companies but also that it is understandable and implementable throughout the group. As with most corporate governance procedures, there is no “one size fits all” solution.
The extensive practical experience of the FluidRock team in the governance of organisations, gained over many years of hands-on involvement in boardrooms of numerous organisations, makes the team ideally placed to assist any group of companies in formulating and implementing a bespoke solution to address this very important aspect of group governance.