State capture, defined as “seeking to influence the formation of laws in order to protect and promote influential private interests”, and its resultant Zondo Commission, continues to shock South Africans from all walks of life.
Signium’s corporate governance specialist, chartered director and Chairman Dr. Simo Lushaba, and Director of Assessments, industrial psychologist Michelle Moss assert that directors, board members and other stakeholders across the range of affected organisations should have noted the red flags and taken appropriate actions.
“The strength of every country lies in its institutions and the robust backbone its professional members must bring to their positions of leadership and the public’s expectation of trust,” says Lushaba. “Directors, particularly those appointed to the Board of an organisation, must be the be-all and end-all of corporate governance.”
His key concern is that professionals are being appointed to these positions of power based only on the skills, qualifications and experience noted in their Curriculum Vitae (CV). “Principle 7 of King IV requires that the Governing Body, of which a Board of Directors is one, should comprise the appropriate balance of knowledge, skills, experience, diversity and independence for it to discharge its governance role and responsibilities objectively and effectively.
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