Starting from 2016, signatories to the Code are expected to report annually on their application of the principles of the Code in their website, annual report or in other publicly accessible documents. An institutional investor council will be established as a platform to discuss stewardship matters undertaking the oversight role of monitoring the take-up and application of the Code.
“Our domestic institutions’ collective commitment to the Code sends a clear message to the market that corporate governance is something that goes beyond regulatory compliance. Rather, it is an active source of value creation for the company and its owners, as well as a measure of competitive advantage for the capital market and the broader economy,” said Datuk Ranjit Ajit Singh in his keynote address while launching the Code at the Institutional Investor Roundtable held at the SC today.
Tan Sri Dr Sulaiman Mahbob, Chairman of MSWG said, “Despite the Code being voluntary, institutional investors should apply the Code in the interest of their beneficiaries. A good take-up and application of the Code by institutional investors will encourage good governance and long-term sustainability of their investee companies.”
Over 150 participants from institutional investors, public-listed companies, pension funds, investment trust and insurance companies attended the half-day session which included presentations by Mr. Paul Lee, Head of Investment Affairs, National Association of Pension Funds UK, and Mr. Motoyuki Yufu, Director of Corporate Accounting and Disclosure Division of the Financial Services Agency Japan who shared experiences on the UK Stewardship Code and Japan Stewardship Code respectively.
SECURITIES COMMISSION MALAYSIA
MINORITY SHAREHOLDER WATCHDOG GROUP