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KING IV - Coggle Diagram
KING IV
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Chairman
A retired CEO should not serve as the chair of the governing body until three complete years have passed after the end of the CEO’s tenure.
Determine the number of outside professional positions that the chair is allowed to hold, taking into account the relative size and complexity of the organisations involved.
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Internal Audit/CAE
For reasons of independence, the CAE should have access to the chair of the audit committee.
The CAE should report to the chair of the audit committee on the performance of duties and functions that relate to internal audit. He will report to executive management regarding other duties and admin matters
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The GB should approve the appointment of the CAE, including the employment contract and remuneration of the CAE, and ensure he has the necessary competence and objectivity.
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Combined assurance
The GB should delegate to the audit committee, the responsibility for overseeing that those arrangements are effective in achieving the following objectives:
Supporting the integrity of information used for internal decision-making by management, the GB and its committees.
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Composition of GB
The GB should consist of a balance of knowledge, skills, experience, diversity and independence (Diversity targets relating to the composition of the GB).
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The GB should be a mix of executive, non-executive and independent non-executive members.
The GB should comprise of a majority of non-executive members, most of whom should be independent.
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Audit Committee
ALL members should be Independent NED of the GB. Members should have the necessary financial literacy, skills and experience.
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1 The CEO should not be a member of the audit committee, but should attend by invitation any meeting.
When the GB delegates risk governance to the audit committee, the audit committee should satisfy itself that it dedicates sufficient time to this responsibility.
Nomination Committee
All members of the committee for nominations should be nonexecutive members of the GB, and the majority should be independent.
Remuneration Committee
All members of the committee for remuneration should be nonexecutive members, with the majority being independent non-executive members.
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