The Corporate Governance Council (Council) has released a consultation paper on Tuesday (16 January) on its recommendations to revise the Code of Corporate Governance (Code), which aim to support sustained corporate performance and innovation, and strengthen investor confidence in our capital markets.
The Council said that it believes that a well-rounded board with the appropriate mix of skills, experience and independence is critical to good corporate governance. Hence, a key focus of the Code revisions is to reinforce board competencies through encouraging board renewal, strengthening director independence and enhancing board diversity.
The Council added that other proposed Code revisions include greater emphasis on disclosures of the relationship between remuneration and value creation, and the need for companies to consider and balance the needs of all stakeholders.
Beyond Code revisions, the Council is also proposing to clarify the intent of the comply-or-explain regime and the expectations on listed companies’ corporate governance disclosures, adding, "Given the importance of a conducive eco-system to support companies in implementing good corporate governance practices, the Council is recommending the establishment of an industry-led Corporate Governance Advisory Committee."
It then added that consequential amendments to the Singapore Exchange’s (SGX) Listing Rules are also set out in the consultation paper, which are baseline corporate governance requirements that the Council expects all listed companies to comply with.
Mr Chew Choon Seng, Council Chairman, said, "The package of recommendations takes into account the changing business environment and the diverse views of various stakeholder groups that the Council has engaged. The streamlined Code is shorter and concise."
"It seeks to encourage companies to move away from a compliance mindset and adopt thoughtful corporate governance practices that will best support their long-term business objectives," he added.
The Council and SGX invites interested parties to submit their feedback on the recommendations by 15 March 2018., noting that a copy of the consultation paper is available on the MAS website.