JOK Governance

Companies or organisations that are known to have good corporate governance are often better rated by the market. Good governance relies on relevant laws and voluntary codes such as NamCode and King IV code of Governance.  The announcement by the Minister of Public and Enterprises on the implementation of Namibia Public Enterprise Governance Act, Act 1/2019 is a clear demonstration by government of its efforts to strengthen and ensure good corporate governance.  Laws provide the framework that people must not transgress and provides the sanctions they will face if they do. By contrast, a voluntary code like King IV seeks to set out the principles and best practices that organisations with a sincere desire to achieve good governance should follow. We can enact laws after laws, but as long as the intended users and organizations fail to deduce the interest thereof, the objectives of such laws will not be realized and they will become white elephants. As the new law unfol...