Municipal entities are independent organisations that perform municipal services on behalf of a municipality and the municipality controls the majority shareholding.
Board members of Municipal Owned Entities / Utilities are required to ensure that they meet a complex set of demands including the strategic aims of the Entity / Utility, the mandate of Municipal Leaders and the requirements of the Municipal Systems Act, Municipal Finance Management Act, Companies Act and The King Code of Governance Principles for South Africa and the King Report on Governance (King III). Municipal entities operate in a highly regulated environment which could prohibit performance (conformance against performance). Like all other businesses they have to perform in order to, among others, grow the business whilst managing risks, create and retain jobs.
To facilitate effective board representation the Municipal Owned Entities / Utilities Board Induction Programme aims to provide a customised governance and leadership perspective for board members.
The King Code of Governance Principles for South Africa (King III)
- The Board should provide effective leadership based on an ethical foundation.
- The Board should act as the focal point for and custodian of corporate governance
- The Board should appreciate that strategy, risk, performance and sustainability are all inseparable.
- The Board should ensure that the company has an effective and independent audit committee, and be responsible for the preparation of financial statements.
- The Board should be responsible for the governance of risk and information technology (IT) governance
- The Board and its directors should act in the best interest of the company.
Key focus areas
- The business case for and value of Corporate Governance in a municipal environment
- Governance Framework and Models
- Key Corporate Governance Role Players
- Role of Shareholders (municipalities) in ensuring effective Municipal Entity Boards
- Challenges for directors and barriers to good governance
- Role and Responsibility of Directors (King Code, Companies Act and Municipal Systems Act and Municipal Finance Management Act)
- Board appointment, composition and Qualities of good directors
- Ensuring continued Board effectiveness
- Case study on Municipal Owned Entities / Utilities. (Analysis of financial statements to determine performance plus the role of the Audit Committee)
1.5 days - 09h00 - 16h00
IoDSA Fellow: R4 694
IoDSA Members: R5 868
Non Members: R7 824