The Securities Commission Malaysia (SC) released the proposed draft Malaysian Code on Corporate Governance 2016 (MCCG 2016) for public consultation. The first Malaysian Code on Corporate Governance (Code) was introduced in the year 2000. The Code was revised twice in 2007 and 2012 to ensure that its principles and recommendations were aligned with business practices and market development.
Recognising the need for regular enhancement to corporate governance practices, the MCCG 2016 adopts a different approach from previous Codes. The new approach aims to encourage progression, and emphasises on conduct and outcomes from corporate governance practices.
The MCCG 2016 streams corporate governance practices into two categories – Core and Core+. Companies are expected to disclose their adherence to the Core practices on an ‘apply or explain an alternative’ basis, which encourages greater thought process in undertaking the practices, and in making disclosures
While Core+ practices are voluntary companies are strongly encouraged to adopt them and disclose in the annual report how these practices are being undertaken or implemented.
Interested parties and the public are invited to submit their comments and feedback online at www.sc.com.my/mccg2016 before the closing date of 8 June 2016. Kindly contact [email protected] or +603 6204 8513 (Nadia Zainuddin)/ +603 6204 8963 (Ismet Al Bakri) if you have any queries in relation to this consultation paper.