King V Crowned: What the New Governance Code Means for Your Practice
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A new chapter in corporate governance has begun. The long-anticipated King V Code has officially been launched, replacing its predecessor King IV after nearly a decade. This isn’t just another regulatory update tucked away for legal teams and company secretaries. King V brings bold, practical shifts that will impact the day-to-day work of accountants in South Africa. It introduces governance expectations that are clearer, more accessible, and far more aligned with today’s business environment addressing emerging risks like AI and climate change, and heightened scrutiny on ethical conduct and disclosure. The new Code positions governance as a strategic asset rather than a compliance checkbox.
Here’s why you should care:
King V simplifies structure and language, making the Code easier to use and apply.
It reduces the number of principles from 17 to 13, but deepens their relevance.
Disclosure and accountability are upgraded, with a formal framework and clearer requirements.
New focus areas like AI, sustainability, and stakeholder engagement are integrated.
It affects more than corporates, SMEs, startups, and professional firms must now interpret and apply governance more thoughtfully.
Below we look at what’s changed, why it matters for accountants in both practice and commerce, and how CIBA’s voice shaped the outcome.
A Simpler, Sharper Framework
The first noticeable change is in the presentation. King V moves away from the bulky, single-document structure of King IV. Instead, it is split into four distinct but connected parts:
Foundational Concepts
King V Code
Glossary
Disclosure Framework
This layout makes it easier to navigate, reference, and apply. Thanks to electronic links and modular content, users can jump directly to what they need. CIBA had recommended a more practical format, and this change reflects that advice.
More than structural, the code itself is streamlined. King V reduces the number of governance principles from 17 to 13 by consolidating related principles and aligning them with the key responsibilities of governing bodies:
Setting direction and tone
Policy and planning
Oversight and monitoring
Accountability and reporting
This structure helps governing bodies focus on function rather than form.
What is New in King V
King V doesn’t just modernise its format, it also responds to today’s fast-changing landscape.
Artificial Intelligence & Technology
The new Code treats data, information, and technology as separate but interconnected areas of governance. It includes specific guidance on AI, calling for accountability, transparency, fairness, and human-centric design in how organisations develop or use AI tools.
Sustainability Reporting
King V embraces the concept of double materiality. Organisations are now expected to report not only on how sustainability factors affect their finances, but also on how their operations affect society and the environment. This is aligned with international frameworks and enhances transparency.
Stronger Independence Standards
The Code sharpens the criteria for independence on governing bodies. It considers tenure, personal relationships, and cooling-off periods when assessing whether someone can be considered independent. This promotes objectivity and trust in governance processes.
A New Disclosure Framework
In a major shift, King V introduces a standalone Disclosure Framework that organisations must use when applying the Code. Instead of vague “apply and explain,” entities must now:
Clearly state where they deviate from practices.
Explain why, and what compensating measures are in place.
Conclude on whether the governance outcomes have been achieved.
This "disclose by exception" approach supports better accountability and comparability.
Why It Matters for Accountants
For Practitioners and SMEs: King V is not just for large corporates. The new Code applies proportionally, but that doesn’t mean it's optional. If you advise SMEs, run a small practice, or serve on a board, here’s how King V affects you:
Social and ethics committees now require at least one independent member.
Governance disclosures must follow the new format, even for smaller entities.
Stakeholder legitimacy and ethical procurement are emphasised, especially for those operating in supply chains.
CIBA pushed for proportional guidance and simplified toolkits to help SMEs adopt governance practices in a way that suits their capacity. While the tone of King V encourages proportionality, practical tools are still lacking.
For Accountants in Commerce: If you’re part of a finance team, King V touches your daily work too:
Governance of AI, cyber risk, and data is now a board-level issue that finance professionals must understand.
The double materiality principle means you’ll report on more than just numbers — ESG impact is now integral.
The Disclosure Framework demands high-quality narrative governance reports that articulate strategy, ethics, and risk in plain language.
This is a chance to position yourself as a strategic partner — not just a reporter of financials.
What CIBA Got Across (and What’s Still Missing)
CIBA's submission was practical and focused on making governance real for SMEs and professionals. Many of its suggestions were reflected in the final Code:
CIBA played an active role in shaping King V, submitting a well-considered set of proposals aimed at improving usability, practicality, and proportionality, especially for SMEs. Many of these recommendations were taken into account and helped improve the final product.
Where CIBA made a real impact:
Plain language and structure
King V is easier to understand, thanks in large part to CIBA's push to eliminate jargon and make governance accessible to non-specialists.
Modular format
The separation into four documents mirrors CIBA's request for a user-friendly, navigable layout.
Independence criteria
Updates on cooling-off periods, tenure, and personal relationships reflect CIBA’s concern with clarity and integrity in board composition.
Economic framing
CIBA’s idea of positioning governance as a tool for inclusive growth was adopted, making King V feel less like a compliance checklist and more like a roadmap to resilience and opportunity.
Where progress was made, but work remains:
Proportional application for SMEs
While King V references proportionality, it stops short of offering real-world examples or toolkits that SMEs can use to adapt the Code without being overburdened.
Terminology shift
King V replaces "six capitals" with "resources and relationships," diverging from global reporting standards that CIBA urged the Code to align with.
Ethical procurement
While there’s an emphasis on stakeholder legitimacy and responsible corporate citizenship, CIBA’s call for a dedicated section on procurement responsibilities toward SMEs wasn't implemented.
What was left out entirely:
CIBA requested sector-specific disclosure templates to make it easier for companies in regulated industries (e.g., automotive or agriculture) to implement the Code meaningfully. Their absence could limit adoption.
Digital governance platforms would have enabled tech-based disclosure and comparison tools. This may hinder access and benchmarking.
While King V adopted a double materiality approach, CIBA had recommended sticking to financial materiality in line with IFRS S1 & S2 to reduce reporting complexity. This divergence could create implementation confusion.
In short, CIBA’s voice helped make King V more relevant, usable, and aligned with the realities of South African business. But gaps remain, particularly in giving SMEs practical tools and in fully harmonising with international standards. There’s still work to do, and CIBA will be at the forefront of helping members interpret, apply, and benefit from the Code.
Your Next Move
Governance isn’t optional anymore, it’s your license to operate providing credibility, compliance, and value creation.
Start by reviewing the Code and Framework with your team. Assess where your governance needs an upgrade. And if you’re part of CIBA, use the resources and network available to you to lead with confidence.
