The political economy of corporate governance reform in South Africa

Abstract

This study explored the political-economic dimension of corporate governance reform in South Africa. Such reform in South Africa is especially significant in view of the history of South African society. This study investigated the relationship between corporate governance institutions and systems on the one hand and the political, economic and historical context of South African society that produced these corporate governance institutions and systems on the other. The purpose of the study was to establish the political, economic and historical determinants of corporate governance reform, as they evolved in the course of South African corporate history. A literature review was done in order to provide a backdrop for the study, after which a number of documents in the public domain were observed, in particular, a number of historical sources, newspaper reports, internet resources, and analyses of selected statutes and South African case law. The study concluded that South African corporate governance reform and such reform in the Commonwealth economic systems have a lot in common in terms of their historical evolution. The outcome of the political process in South Africa, for very specific reasons, was that a specific shareholder model of corporate governance became the corporate governance system in South Africa. Copyright