Page 16 - FOL2023

Corporate Governance

Legal regulation

the first governance code to Intergenerational Thinking and
egal regulation
expressly recognise the role of other Value Creation. This concept can
Lin the context of
stakeholders to a corporate entity be described broadly as requiring
corporate governance refers
in addition to shareholders. From organisations, private and public,
to the imposition of legally
its first iteration to the fourth one, for-profit as well as not-for-profit,
enforceable obligations on
the King Code articulates the point to integrate and mainstream
governance of relationships
that good corporate governance concerns about future generations
between and amongst
requires an acknowledgement that in everything they do and create
shareholders, the board and
an organisation does not operate value for such generations and
management. In Lesotho,
in a vacuum but is an integral thereby assure their own long-term
there is the common law
part of society and therefore has sustainability from generation
and statute that apply in
accountability towards current to generation. This opens the
that context. By virtue of
and future stakeholders. Lesotho’s envelope further to include not
section 2 of the General Law
Mohlomi Governance Code just environmental, social and
Proclamation of 29th May,
of Lesotho takes the issue of governance matters but also broader
1884, read with section 4(1)
concern for other stakeholders of economic value creation concerns.
of the Independence Order
the company a step further and Importantly, it also pushes the issue
in Council of 1966, Lesotho’s
introduces the concept of of climate change to the centre
legal system has been closely
of boardroom decision-making
intertwined with that of South
and good corporate governance
Africa. Thus, unless specifically
frameworks.
changed, varied or otherwise

modified by statute in Lesotho,
In the final
the South African common law
analysis,
applies with greater persuasive
value before the courts of law

in Lesotho. The common law of
corporate companies in South
governance is Africa is therefore
increasingly looked at beyond the interests now broad variation between

of the shareholders but also embracing the broader interests of the current South Africa’s
society as a whole from one generation to the next. This is all anchored on Companies Act 71 of 2008 and
the fundamental principles of responsibility, accountability, transparency and the current Lesotho Companies
Act of 2011. Thus, it is vital to
intellectual honesty, as those may be couched in one form or another.
appreciate such differences
especially in reading South
African cases that interpret the

Companies Act in that country.

Issue 2022 FOL Quarterly 17