Steinhoff is a dubious tangle of boards, bosses and big bucks
Company’s two-tier governance structure and committee membership put integrity at risk
In what is referred to as SA’s biggest corporate scandal, the reasons for Steinhoff’s and former CEO Markus Jooste’s fall from grace need to be analysed in the context of the Steinhoff International Holdings 2016 annual report. It raises issues of concern about governance across multiple jurisdictions and indicates that dual-listed South African companies should be required to more formally abide by the principles of the King Code of Corporate Governance. The King IV code became operational in November 2016 and some of the principles and practices would not have been applicable but they are illuminating in raising several red flags, which might result in better governance outcomes in the future should they be applied. Since December 2015, Steinhoff’s primary listing has been Frankfurt, with the secondary listing in Johannesburg, which it retained since first listing in 1998. Its registered office is in Amsterdam and its business office in Stellenbosch. The company abides by the Dutc...
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