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PROTOCOL ON CORPORATE GOVERNANCE

PROTOCOL ON CORPORATE GOVERNANCE in the PUBLIC SECTOR REPUBLIC OF SOUTH AFRICA Department of Public Enterprises. 2002 all rights reserved Page 1 of 54 PROTOCOL ON CORPORATE GOVERNANCE IN THE PUBLIC SECTOR 1. Historical Background In 1994 upon the election of a democratic majority government, the Government found that some of the instruments for delivering necessary services and carrying out policy were actually SOEs, and their control and GOVERNANCE was not based on any standardized principles or rules. These SOEs were organized in many different ways and subordinate to a wide range of legislation and statutory regulations. Some SOEs, in fact, acted as autonomous entities, having not had substantive direction or control from the previous Government for a long period of time.

Corporate governance, as embodied in the new and revised Protocol, is one of the cornerstones of this strategic vision. It is the Government’s intent that the principles of this Protocol should apply to all public entities and their subsidiaries. 2. Corporate Governance, Legal and Policy Framework 2.1.

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