The role of board of the directors in ensuring that the State-Owned Companies (SOCs) are sustainable in creating value to shareholders within the South African context

Abstract

The research was undertaken to highlight the gaps which are systematic which most corporate governance fail to either adhere to or implement. The research will focus on the state-owned companies, these are the companies which were established to stimulate the economic growth with the country in order to be able to contribute to the shareholders and its primary stakeholders which is public through the creation of value that is sustainable. The accountability does articulate the expectations between the shareholder and board members and eventually to the management of the organisation. The other mechanism that articulates what needs to happen in order to maintain good governance within the organisation is the corporate governance principles, the principles gave rise to the independent board of directors as well as their responsibilities. The corporate governance does direct the organisation in terms of how they are to be managed, controlled and directed. A total of 12 interviews were conducted to establish the role played by the board of directors to create value to the shareholders. The board of directors of the state-owned companies who are reporting to the shareholder who is the cabinet minister in the national government were selected. The research methodology used to obtain the data was qualitative using inductive method.