Bursa Malaysia Amends Listing Requirements To Strengthen Board Quality And Enhance Transparency Of Listed Issuers’ Corporate Governance Practices

30/11/2012

Bursa Malaysia has amended the Main Market and ACE Market Listing Requirements (LR) to strengthen and enhance corporate governance (CG) practices of listed issuers.

The amendments are in line with the recommendations made under the Corporate Governance Blueprint 2011 (CG Blueprint), as well as the Malaysian Code on Corporate Governance 2012 (MCCG 2012) issued by the Securities Commission (SC).

According to Bursa Malaysia Chief Executive Officer, Dato’ Tajuddin Atan: “The CG amendments will lead to the promotion of a stronger corporate governance culture amongst the listed issuers by strengthening their board structure and composition as well as enhancing transparency in their corporate governance practices.”

He added, “We are committed to further enhance the corporate governance culture thereby benefitting the listed companies, shareholders, stakeholders and capital market as a whole.”

The salient CG amendments made are in the following areas:

  • Aligning disclosure of corporate governance statements with the MCCG 2012 in annual reports
  • Mandating poll voting for related party transactions which require specific shareholder approval
  • Limiting the number of directorships in listed issuers from 10 to 5
  • Mandating the establishment of a nominating committee and requiring disclosure of its activities
  • Enhancing disclosures in annual reports in relation to directors’ training

Through the CG amendments, Bursa Malaysia has also provided greater guidance to listed issuers to enable them to make more meaningful and quality disclosures in their corporate governance statements.

All listed issuers with financial years ending on or after 31 December 2012 must provide their corporate governance statements based on the MCCG 2012 in their annual reports, as announced by the SC when it issued the MCCG 2012 on 29 March 2012. The other CG amendments will become effective on or after 1 June 2013.

For more information on the LR amendments and their effective dates, please visit Bursa Malaysia’s website at www.bursamalaysia.com.