SOUTH AFRICA

Corporate Governance:
1. Corporate governance in South Africa is informed by common law and statute, soft law
and market regulation. South Africa is a member of the G20 and as such works closely
with other members for the implementation of international best practice in financial and
market regulation.
2. Regulation of corporate governance in South Africa is based on The king III Report on
Corporate Governance (2009) & Companies Act 71 2008

Insider Trading:
1. The inadequacies of the legal framework particularly on criminal trial and the absence of
a civil remedy, played a large role in the drafting of the Insider Trading Act (1998)
2. In South Africa’s past in Section 440 of the Companies Act (1973) which contained a
criminal sanction only requiring guilt to be proven beyond reasonable doubt

Bribery:
1. The concept of bribery in South Africa is referred to as “corruption” and is a crime that
may be committed by both public officials and private individuals as well as both public
and private entities
2. In South African law does not prescribe any limitation on hospitality expenses; however,
whether or not a hospitality expense is appropriate will depend on the reasons for the gift
or entertainment and the level of employment of the government official to whom it is
offered

Discrimination:
1. In South Africa the Affirmative action policies are meant to correct wrongs of the past by
promoting equal opportunities for those that were oppressed by the Apartheid system; the
Blacks; Africans Indians and Coloureds.
2. During the apartheid era women were excluded from most types of formal employment
except clerical and secretarial work, black women occupied positions as domestic
workers and tea-ladies in office buildings. 
Social Responsibilities:
1. In South Africa stakeholders (including potential employees and customers) expect
brands to be actively involved in CSR/CSI initiatives that promote sustainable
development and serve to uplift the community.
2. The discussion around corporate citizenship and responsible business practices isn’t new
to South Africa. Please look at Steinhoff’s management corporate scandal the company is
listed on both the Johannesburg Stock Exchange in South Africa as well as the Frankfurt
Stock Exchange in Germany. With a primary listing in Frankfurt and
an Amsterdam corporate address, Steinhoff follows the Dutch corporate governance
code.

Fiduciary Responsibilities:
1. A fiduciary duty is a legal obligation of one party to act in the best interest of another. A
fiduciary is therefore an individual in whom another has placed the utmost trust and
confidence to manage and protect his property, money or affairs.
2. In South Africa as per section Section 76(3) of the Companies Act, No. 71 of 2008
clearly defines must exercise his or her powers and perform his or her functions: in good
faith and for a proper purpose in the best interest of the company; and with the degree of
care, skill and diligence