The relationship between Corporate Governance & Shareholder Value:

Most investors are aware of the importance of Corporate Governance to their investments. But what exactly is the relationship between Corporate Governance and shareholder value in South Africa?

To understand this relationship, it is important to start by understanding what Corporate Governance is. Corporate Governance is the practice of managing and directing the affairs of a company so that the best interests of shareholders, stakeholders and the company itself are secure. It is designed to ensure that all actions taken by the company are within the legal and ethical boundaries so as to create sustainable and long-term value.

Corporate Governance also serves to increase shareholder value. How? By including in its practices regulations on disclosure, transparency and disclosure of risks that are likely to affect the company. These serve to protect the interests of shareholders and increase their confidence in the company. This, in turn, leads to higher trading volumes, which directly contribute to higher stock prices and thus higher shareholder value.

In South Africa, there are laws in place to support the practice of corporate governance and ensure it is being followed in every company. The Companies Act of 2008 is the most relevant law in this regard. This law specifies the regulations in place for company directors, which include:

• The Board of Directors must act honestly in the best interest of the company.
• All members of the Board should act in good faith and with reasonable care, skill and diligence.
• Directors must disclose any conflicts of interest that may arise be in the course of their duties.

The law also outlines what shareholders should expect from the Board of Directors, specifically in regards to company performance and disclosure of relevant information. This promotes trust and accountability between shareholders and the Board of Directors, which contributes to increased shareholder value.

It is clear that proper Corporate Governance has a direct, positive effect on shareholder value. This is demonstrated in the fact that companies with good Corporate Governance have consistently demonstrated better returns on their investments than those companies whose corporate governance is not up to date.

At QikTruck, we understand the importance of Corporate Governance to our business. We are committed to best practices for our clients, and providing them with service backed by trust and accountability. As a truck and driver hire service, we are fully aware of the legal ordinances for our industry, and strive to ensure that each service provided is compliant with relevant laws. As a South African company, we recognize how important Corporate Governance is, and how it affects shareholder value.

This is why QikTruck is perfect for South African individuals, corporations and companies whom wish to transport their goods, but who may not have access to the necessary regulations to ensure corporate governance is carried out to a high standard. Our team of experienced drivers, ranging from couriers to logistic companies, are trained to uphold best-practice corporate governance standards and promote appropriate disclosure of risks to ensure shareholder value is not only protected, but is also consistently increasing.

This relationship between corporate governance and shareholder value cannot be overstated. It is, furthermore, a top priority for QikTruck. As a company, we are dedicated to upholding the highest standards of corporate governance so that our clients can have peace of mind that their investments and shareholder value is consistently increasing and secure.