MAS Announces Establishment of Corporate Governance Council to Review the Code of Corporate Governance
Singapore, 27 February 2017… The Monetary Authority of Singapore (MAS) announced today that it has formed a Corporate Governance Council (Council) to review the Code of Corporate Governance (CG Code). The Council will be chaired by Mr Chew Choon Seng, former Chairman of the Singapore Exchange (SGX).
2 The CG Code was last reviewed in 2012, when changes were introduced to strengthen Board independence and enhance remuneration practices and disclosures. Corporate governance practices globally have continued to evolve since then. MAS has been monitoring these market developments and industry feedback on how the CG Code can be improved. A review of the CG Code and practices is thus timely to ensure that they continue to support sustained corporate performance and maintain investor confidence in our capital markets.
3 The Council will consider how the “comply-or-explain” regime under the CG Code can be made more effective. This includes improving the quality of companies’ disclosure of their CG practices and explanations for deviations from the CG Code. The Council will also propose mechanisms to monitor the progress made by our listed companies in strengthening their corporate governance practices.
4 The Council members are drawn from various stakeholder groups to provide a broad and diverse perspective on CG issues (see Annex for a list of the members). Representatives from MAS, the Accounting and Corporate Regulatory Authority (ACRA) and SGX will also be appointed to the Council. The Council will consult the public on its recommendations, including changes to the CG Code, before finalising them.
5 Mr Chew Choon Seng, Council Chairman said, “We need to ensure that our CG Code remains relevant and progressive, and supports sustained business growth and innovation. The review of the CG Code will therefore take into account changes in our corporate landscape as well as international developments. With market participants paying greater attention to the corporate governance practices of listed companies, companies are now under increasing pressure to become more transparent and accountable to their stakeholders. It is important for our listed companies to go beyond mere box-ticking and boiler-plate explanations. They must be able to engage meaningfully with their stakeholders and implement CG practices that lead to long-term sustainable business performance.”