Assessment of the corporate governance compliance in the annual reports of companies listed on the Alternative Exchange (AltX)

This research study provides a brief overview of the corporate governance practices in South Africa and discusses the corporate governance indicators which were used to compile a checklist against which companies were evaluated. This study assessed the corporate governance compliance of a sample of companies listed on the AltX in South Africa, based on disclosures in their annual reports. The corporate governance indicators tested include inter alia the boards of directors, audit committee, the governance of risk and information technology and the internal audit division. The results demonstrate substantial variation in rates of adoption of individual recommendations. Two areas namely IT governance and internal auditing had low adoption rates.