The Securities Commission Malaysia (SC) is dedicated towards promoting the internalisation of a culture of good governance amongst capital market participants. Greater emphasis is being placed on self and market regulation to complement the existing comprehensive regulatory framework. We believe that a strong corporate governance culture must be premised on a dynamic synthesis of efforts between regulators and the market.
Corporate Governance Blueprint 2011
The CG Blueprint was open for public consultations from 8 July 2011 to 15 September 2011. Additionally, the SC had issued a consultation paper on 15 November 2011 to obtain views on independent chairman and poll voting. The responses received from the public consultations and the SC's position on each recommendation is available for download.
Malaysian Code on Corporate Governance 2012
The Malaysian Code on Corporate Governance 2012 (MCCG 2012) is the first deliverable of the CG Blueprint and supercedes the Malaysian Code on Corporate Governance 2007. It sets out broad principles and specific recommendations on structures and processes which companies should adopt in making good corporate governance an integral part of their business dealings and culture.
This new code on corporate governance focuses on clarifying the role of the board in providing leadership, enhancing board effectiveness through strengthening its composition and reinforcing its independence. It also encourages companies to put in place corporate disclosure policies that embody principles of good disclosure. Companies are encouraged to make public their commitment to respecting shareholder rights.
The MCCG 2012 will be effective on 31 December 2012. Listed companies are required to report on their compliance with the principles and recommendations of the MCCG 2012 in their annual reports. Companies are however encouraged to make an early transition to the principles and recommendations elaborated in this new code.