Accountability, transparency and openness have always been demanded of South African company directors. However, prior to 1994, business people had no clear guidelines on how these broad principles were to be applied. This is because they were found in the common law, which is primarily based on court decisions and not readily accessible to businessmen. The First King Report on Corporate Governance ("First Report") was published in 1994 by the Institute of Directors in response to the increasing concern over corporate failures and the perceived need for a formal code of corporate governance. The First Report sought to assist companies and their directors by providing a comprehensive set of principles and guidelines to codify, clarify and (in certain circumstances) expand upon the common law principles of corporate governance. It was intended as a code of good practice that amiliariz the responsibilities of company directors with regard to corporate governance. The Second King Report ("King II") was amiliari in March 2002 and both reviewed and expanded on the First Report.

Written by: Davis Walker and Ina Meiring, Directors at Werksmans

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