Singapore Corporate Governance Code revised

Rules on director independence, remuneration and disclosures have been tightened to instill confidence in capital markets.

Shareholder rights and roles have also been shored up with the changes, which are set to take effect in respect of Annual Reports relating to FY commencing 1 November 2012.

The revisions were made by the Monetary Authority of Singapore (MAS) from recommendations put forward by the Corporate Governance Council.

"The key changes to the Code are focused on the areas of director independence, board composition, director training, multiple directorships, alternate directors, remuneration practices and disclosures, risk management, as well as shareholder rights and roles. MAS will however make two modifications to the recommendation relating to independence from substantial shareholders," said MAS in a release.

Ms Teo Swee Lian, Deputy Managing Director of Financial Supervision, MAS said, “The Council has delivered a set of sound and balanced recommendations that will underpin strong corporate governance among Singapore listed companies and enhance investors’ confidence in Singapore’s capital markets. MAS is happy to accept all of the recommendations.”

Also in the pipeline is a Guaidance for Boards on Risk Governance, which MAS said will provide practical guidance on risk governance for Board members.

The revised Code of Corporate Governance can be accessed here: https://www.mas.gov.sg/resource/fin_development/corporate_governance/cgcrevisedcodeofcorporategovernance2may2012.pdf.