Altron and Bytes Technology Group have become the first companies to receive validation and certification for corporate governance, and will kick-start a benchmarking process for companies to measure themselves against.
The two companies completed internal corporate governance procedures using software tools developed Corporate Governance Products (CPG), which enshrine the principles of the King II guidelines and have been adopted by the Institute of Directors (IoD).
The processes were then validated by Corporate Governance Accreditation of SA (CGA), which not only audited the internal measurements, but was able to validate the human element of governance as well.
Altron obtained a result of 79% placing them at the top end of the Silver Awards scale, while Bytes achieved 67%, which also qualifies it for Silver status.
Companies that achieve a score of between 50% and 65% receive a Bronze Award, between 65% and 80%, a Silver Award, and a score above 80% receives a Gold Award.
The CGA-led concept offers the potential to build on the CGA certification process in order to develop a governance index, says Jonathan Lewis, MD of CGA.
"It is a world first combination of an internal tool coupled with an external verification process that enables a board and its office bearers to be fully informed of their responsibilities and duties. It also provides a transparent window to all shareholders and is a unique platform for full corporate governance accreditation."