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Source:
www.mas.gov.sg |
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MAS and SGX to oversee
corporate governance for listed companies from 1 September 2007 |
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Oversight of corporate governance of listed
companies will be transferred from the Council of Corporate Disclosure
and Governance (CCDG)[1] to the Monetary Authority of
Singapore (MAS) and the Singapore Exchange Ltd (SGX) with effect from 1
September 2007. |
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The move will clarify and streamline
responsibilities for corporate governance matters for listed companies.
The approach is consistent with that taken in other sectors, where the
sectoral regulator takes responsibility for oversight of governance. |
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The Code of Corporate Governance will
continue to be implemented through the SGX Listing Rules via the ¡°comply
or explain¡± approach[2], as is currently the practice. |
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The Code, which covers areas such as board
matters, remuneration, accountability and audit, and communication with
shareholders, will continue to complement SGX¡¯s Listing Rules which
govern specific important governance matters such as related party
transactions, periodic reporting and disclosure of material information. |
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As the front line regulator of listed
companies with close interactions with many market participants, SGX
will continue to work with other stakeholders to raise governance
standards for listed companies. |
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MAS has overall responsibility for capital
market regulation, including oversight of SGX. |
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With the active involvement of SGX and
market participants, MAS will conduct periodic reviews of the Code to
ensure that it remains relevant and useful, and is in line with global
best practices. As the Code was last reviewed in 2005, MAS does not see
any pressing need for a further review in the near future. |
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Shane Tregillis, Deputy Managing
Director, Market Conduct, MAS, said, ¡°We consider that the Code
generally sets the appropriate benchmarks for good corporate
governance for companies in Singapore. While we will keep the Code
under review to ensure it stays up to date with market
developments, the immediate focus of MAS and SGX will be on
working with market participants to identify practical initiatives
to help more listed companies and directors put in place corporate
governance arrangements in line with the best practices set out in
the Code.¡± Yeo Lian Sim, Executive Vice President and Head, Risk
Management and Regulation, SGX, added: ¡°Good governance is
important for the sustained performance of listed companies. The
standing of SGX listed companies will be enhanced with
transparency and accountability in an increasingly global
environment.¡± |
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1 The CCDG was formed in August 2002
to prescribe accounting standards, strengthen the framework on
disclosure practices and reporting standards, and to review and
make recommendations to MOF on revisions to the Code of Corporate
Governance. The council will be dissolved on 1 September 2007.
2 All companies listed on the
Singapore Exchange ("SGX") are required as part of the SGX Listing
Rules, to give a description in their annual reports of their
corporate governance practices with specific references to each of
the guidelines set out in the Code of Corporate Governance; where
they deviate from the Code, they are required to disclose these
non-compliances with appropriate explanations. |
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Joint Press Release by MAS and SGX |
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Source:
www.mas.gov.sg Press Release
29 May 2007 |
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FrontPage Edition: Wed 30 May 2007
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