The proposals include a follow-up from areas discussed in the Discussion Paper on Corporate Governance Framework issued in December last year, incorporating the feedback and comments received.
The Consultation Paper covers four key proposals aimed at strengthening accountability among key governance gatekeepers, improving governance practices and transparency by public listed companies (PLCs) and promoting market discipline through greater shareholder empowerment.
The proposals are as follows:
- Enhancing oversight over company secretaries
The SC proposes to introduce new requirements that aim to strengthen the quality, professionalism and effectiveness of company secretaries in supporting boards and advising on governance matters; - Establishing a shareholder litigation fund
Enhancing shareholders’ activism by providing shareholders with access to financial resources and legal support to pursue meritorious legal claims that are in the broader interests of shareholders and the market; - Enhancing governance practices in companies with concentrated ownership such as family owned companies
The SC proposes to introduce greater guidance on governance expectations for PLCs with concentrated ownership structures, given their prominence in Malaysia’s corporate landscape; and - Clarifying expectation on technology governance
The SC also seeks feedback on proposed expectations for board oversight of technology, including disclosures on the use and governance of technology and artificial intelligence (AI).
The review and proposed enhancements are aligned with the Capital Market Masterplan 2026-2030, which continues to position market discipline as a key enabler towards a strong and effective corporate governance ecosystem.
This Consultation Paper is open for feedback from 3 July 2026 to 31 July 2026.
The SC welcomes views from a wide range of stakeholders, including PLCs, investors and industry associations.
The Consultation Paper is available at https://www.sc.com.my/regulation/consultation-papers. Enquiries may be emailed to [email protected].
