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New legislation for records management

Companies faced with the new King III Report as well as its requirements as per the Companies Act, are still grappling to understand what the implications these have on retaining and managing information assets.

At a recent business breakfast, hosted at the Irene Country Lodge by records and information management specialists Metrofile, guest speaker Paul Mullon walked the more than 70 strong audience through what new regulations mean for business, as well as provided an enhanced understanding of how they can better manage their company records.

“It was clear from the fantastic attendance we had that organisations are, under the new proposed legislation, unclear on when they can safely scan and destroy documents,” says Nick Jadrijevic, sales and services manager at Metrofile Pretoria. “While providing the audience with a synopsis of what the law dictates, we still urged them to consult with professionals before making the decision to destroy any of their documents.”

“There are now so many factors to consider when taking the decision to scan, store or destroy documents. The Companies Act requires that certain companies be able to store and present documents for specified periods of time, dependent on their industry. However the ECT Act stipulates that only certain formats of electronic documents and images will stand as legal evidence of the original. It is therefore crucial to know what is required of your business and whether you are operating within the letter of the law,” states Jadrijevic.

Made up of members from both the private and public sector, seated in the audience were record managers, risk analysts, financial managers as well as directors from organisations, all hoping to glean a better understanding of the new laws. Mullon, who is the chairperson of the Technical Committee responsible for implementing document management standards throughout South Africa, and is well versed in ISO standards and the implementation of these, explained to the all that management is now essentially responsible for making information available when required.

Mullon emphasised that under the new King III report and the Companies Act there is no room for ambivalence, the onus is now on executives to know exactly what is going on in their business.

“One of the key themes in lieu of impending legislation is that by ensuring that effective records management practices are followed organisations are going to be able to take advantage of a reduction in business threats as a result of risks, and also prevent fraud where possible. So while it seems to be a lot to get our heads around now, the long term benefits of these legislations are going to be positive for all,” adds Jadrijevic.

Mullon urged the audience to embrace some form of corporate governance in their organisations should they want to remain competitive in the changing business landscape. Furthermore he said that most companies are going to adopt King III irrespective of whether or not they have to, because of its alignment to the Companies Act and to the ECT Act, so it is important to know what these require of your business.

“Good corporate governance is underpinned by good information management and governance, and the onus is no longer only on your records managers or IT managers to know where your information assets are stored. We are encouraging our clients to become more au fait with legislations and where they do not know, consult,” ends Jadrijevic.

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