SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of the responsibilities of directors in terms of corporate governance 
SAQA US ID UNIT STANDARD TITLE
242598  Demonstrate knowledge and understanding of the responsibilities of directors in terms of corporate governance 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard provides an opportunity for learners to understand and respect the position of directors. It is intended learners in middle management, Intermediaries and learners in organisations who aspire to being strategic Directors of Companies and who need to understand the fiduciary responsibilities of directors. It will be useful for Company Secretaries, Compliance Officers and learners who are moving through the management system.

The qualifying learner is capable of:
  • Researching the historical basis for corporate governance and the management of strategic risk.
  • Applying knowledge and insight to different types of directorship.
  • Analysing the regulatory rights and responsibilities of directors and the related risks.
  • Applying knowledge of corporate governance to directorships in a specific business sector.
  • Explaining the insurance needed by directors and shareholders. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners should be competent in Communication and Mathematical Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Conflicts of interest include, but are not limited to, tenders, serving on Boards with close relationships, anti-competitive activities, monopolies and reward programmes.
  • Regulatory rights and responsibilities include, but are not limited to, responsibilities to shareholders, articles of association, memoranda, legal and financial obligations, responsibilities to shareholders, clients and employees and issues of compliance. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Research the historical basis for corporate governance and the management of strategic risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The need for corporate governance is analysed from international and South African examples. 

    ASSESSMENT CRITERION 2 
    The importance of good corporate governance is explained with reference to shareholders, directors, employees, consumers and the impact on the economy. 

    SPECIFIC OUTCOME 2 
    Apply knowledge and insight into different types of directorship. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Different types of directorship are analysed in terms of the relationship of each type to the organisation and the associated remuneration. 

    ASSESSMENT CRITERION 2 
    Ways in which directors can have a conflict of interests are explained with examples. 

    ASSESSMENT CRITERION 3 
    Ways of avoiding conflicts of interest are explained for Corporates and large organisations. 

    SPECIFIC OUTCOME 3 
    Analyse the regulatory rights and responsibilities of directors and the related risks. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The regulatory rights and responsibilities of directors are analysed from legislation related to a specific sector or sub-sector. 

    ASSESSMENT CRITERION 2 
    The downside risks attached to being a director are analysed with reference to disclosure, decision making, judicial enquiries, delegation and responsibility. 

    ASSESSMENT CRITERION 3 
    Ways of mitigating responsibility are discussed in terms of corporate governance. 

    SPECIFIC OUTCOME 4 
    Apply knowledge of corporate governance to directorships in a selected business sector. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Statutory requirements in a selected business sector are explained with reference to protection of the consumer, employees and the economy. 

    ASSESSMENT CRITERION 2 
    Statutory requirements relating to directorships and added responsibilities in difference sectors are analysed in terms of implications for prospective directors who serve on Boards in different industries. 

    SPECIFIC OUTCOME 5 
    Explain the insurance needed by directors and shareholders. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Cover offered under public liability insurance policies is analysed with particular reference to extensions for statutory contraventions. 

    ASSESSMENT CRITERION 2 
    Cover available for shareholders against losses incurred through mismanagement is explained with reference to the parties responsible for initiating and funding the cover. 

    ASSESSMENT CRITERION 3 
    Added cover required by professionals in a selected professional sector is identified with reference to when professionals may be held liable. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in recognising the downside risks associated with directorships and ways to mitigate the risk. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in researching the historical basis for corporate governance. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in explaining the insurance needed by directors and shareholders. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by analysing the regulatory rights and responsibilities of directors and the related risks. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Search words:
  • Governance, directors, corporate governance, responsibilities of directors. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    3. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    4. Boland Public FET College - Central Office 
    5. CKP Development Agency (Pty) Ltd. 
    6. COLLEGE OF CAPE TOWN 
    7. College of Cape Town - Central Office 
    8. False Bay College 
    9. Intec College 
    10. Invuya Institute of Learning (Pty) Ltd 
    11. Masifunde Training Centre (Pty) Ltd 
    12. North Link College 
    13. Old Mutual Life Assurance Company South Africa 
    14. Ray Strodl Consulting (Pty) Ltd 
    15. Ripple Effect 4 (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. South Cape College 
    19. South Cape Public FET College - Central Office 
    20. The Institute of Health Risk Managers (Pty) Ltd 
    21. Umfolozi FET College - Central Office 
    22. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.